Supply Chain Headaches Are Back. Gamse Can Help You Plan Ahead
By Al, the Label Guy
Just when you thought it was over…
Though supply chain activity had a moment of normalization during 2023, several new factors are causing stumbling blocks to the supply chain in 2024. Here’s a peek at some of those disruptions and how your company can plan ahead for your label needs.
Top supply chain risks for 2024
Material shortages and delays: Global instability, the lingering effects of the pandemic, and other factors are leading to shortages and delays of raw materials and components.
Labor issues: Labor shortages continue to affect supply chains, causing a lack of shipping crews, long-haul truckers, last-mile delivery workers and production workers of all types including label production. With the success of recent US union negotiations, more strikes may be coming, including dockworkers, which could mean significant delays at East Coast and Gulf Coast ports.
Suez Canal and Panama Canal interruptions: Drought conditions in Panama are reducing the number of vessels that can pass through the canal. Add in the attacks on ships by Houthi rebels in the Suez Canal are causing concerns for safe transit. Both are leading to longer transit times and rerouting decisions.
General shipping costs and delays: As shipping rates increase for the supplier and the consumer, timely delivery of raw materials and finished goods will be affected.
Geopolitical tensions: The ongoing wars between Israel and Hamas and Russia and Ukraine, and the recent strikes on U.S. and international vessels in the Red Sea by the Houthis in Yemen are further destabilizing the safe transit of goods and raw materials.
Homeland Turmoil: As if the challenges across the globe weren’t enough to contend with, Congresses’ inability to provide a solution to the ongoing crisis at our southern border could cause supply disruptions between the U.S. and Mexico, as could the unknown tensions during the upcoming election year. Regardless of who you think belongs in the White House, there will be actions and reactions that affect all of us from a business standpoint…will you be ready?
But it doesn’t have to be all gloom and doom when it comes to your brand’s label sourcing and printing this year. It might just take a little pre-planning and patience on your part and longer than normal turnaround times when it comes to getting your labels.
Rethinking Your Brand’s Label Strategy in 2024
As supply chain risks grow, what does it mean for your label strategy? Do you go back to a “just-in-time” versus “just-in-case” inventory strategy? With higher interest rates, it might make it more expensive for some brands to carry large inventories. But a Just-in-time strategy means you’re at the fate of the supply chain. So, somewhere in the middle is where you want to be. Creating a solid contingency plan is crucial to finding that sweet spot. Here are three important factors to consider.
Flexibility
You should diversify your sources and materials as your go-to label material might not be available when you need it. Take some time to investigate and try new materials. A willingness to take chances during supply chain challenges could help differentiate you from your competition.
Inventory Management
From lean inventory to overstocking, the past few years have lead to an inventory system that was all over the map. Today, inventories should probably fall somewhere in the middle. Buying in bulk can help you save money, keep a bit more inventory on hand and help prevent that panicked thought that you’re about to be out of labels due to being a victim of the supply chain woes.
At Gamse, we can help you stay ahead of the supply chain curve so your products can easily navigate the challenges and land on the shelf when and where you need them. Whether it’s finding new materials, optimizing bulk printing prices, or understanding lead times for alternatives, we’re here to help you minimize supply chain disruptions in 2024.