Nike, the United States based sport wear giant, and Costco, the US based retailer, have both warned of shortages and delays of products as a result of global supply chain issues.
Nike announced that the manufacturing and distribution of their shoes will be affected until next spring because of the shipping problems and a shortage of staff at its manufacturing facilities in Asia.
Meanwhile, Costco has re-imposed restrictions on products such as toilet paper. Customers are hoarding again, according to the company, but it is also having difficulty shipping items to its stores.
Nike announced on Thursday that it has reduced its sales forecast for the year owing to the continued interruption.
"We are not immune to the global supply chain headwinds that are challenging the [manufacturing] and movement of products around the world," chief financial officer Matthew Friend said.
"We expect all geographies to be impacted by these factors."
Local lockdowns because of local outbreaks of Covid-19 have affected the company's production facilities in Vietnam and Indonesia, which makes about three quarters of the shoes sold by the company. This year, it has cost the company ten weeks of output in Vietnam alone because of the lockdowns.
Moreover, the time it takes to ship its items from Asia to North America has more than quadrupled, from 40 to 80 days. Transportation times have also increased in North America, Europe, the Middle East, and Africa as a result of "port and rail congestion and labour shortages," according to Nike.
Costco, which is a membership-only store, said on Thursday that it was restoring to purchasing restrictions at its stores for critical commodities such as toilet paper, bottled water, and several cleaning supplies.
It stated that this is due in part to a revival in panic purchasing, but it is also having difficulty finding trucks, drivers, and shipping containers to transport products to its stores.
Over the next year, the company has even chartered three of its own ocean ships to transport goods between Asia and North America.
"The factors pressuring supply chains and inflation include port delays, container shortages, Covid disruptions, shortages on various components, raw materials and ingredients, labour cost pressures and truck and driver shortages," said Costco's chief financial officer, Richard Galanti.
"Various major brands are requesting longer lead times, and in some cases, difficulty in finding drivers and trucks on short notice".
Shops throughout the world have encountered widespread disruption due to an increase in demand for imports, since the reopening of world's economy ,
It has caused to scarcity of children's toys, timber, new clothes, and pet food in the United States, as well as increased consumer costs.
It has caused to scarcity of children's toys, timber, new clothes, and pet food in the United States, as well as increased consumer costs. oy maker Hasbro and sportswear behemoth Adidas.
And, just last week, a total of 73 ships were compelled to queue up outside two major ports in the United States - at Long Beach and Los Angeles, while port officials worked feverishly to clear the backlog. Prior to Covid-19, it was uncommon for more than one person to wait for a berth.
(Source:www.flipboard.com)
Nike announced that the manufacturing and distribution of their shoes will be affected until next spring because of the shipping problems and a shortage of staff at its manufacturing facilities in Asia.
Meanwhile, Costco has re-imposed restrictions on products such as toilet paper. Customers are hoarding again, according to the company, but it is also having difficulty shipping items to its stores.
Nike announced on Thursday that it has reduced its sales forecast for the year owing to the continued interruption.
"We are not immune to the global supply chain headwinds that are challenging the [manufacturing] and movement of products around the world," chief financial officer Matthew Friend said.
"We expect all geographies to be impacted by these factors."
Local lockdowns because of local outbreaks of Covid-19 have affected the company's production facilities in Vietnam and Indonesia, which makes about three quarters of the shoes sold by the company. This year, it has cost the company ten weeks of output in Vietnam alone because of the lockdowns.
Moreover, the time it takes to ship its items from Asia to North America has more than quadrupled, from 40 to 80 days. Transportation times have also increased in North America, Europe, the Middle East, and Africa as a result of "port and rail congestion and labour shortages," according to Nike.
Costco, which is a membership-only store, said on Thursday that it was restoring to purchasing restrictions at its stores for critical commodities such as toilet paper, bottled water, and several cleaning supplies.
It stated that this is due in part to a revival in panic purchasing, but it is also having difficulty finding trucks, drivers, and shipping containers to transport products to its stores.
Over the next year, the company has even chartered three of its own ocean ships to transport goods between Asia and North America.
"The factors pressuring supply chains and inflation include port delays, container shortages, Covid disruptions, shortages on various components, raw materials and ingredients, labour cost pressures and truck and driver shortages," said Costco's chief financial officer, Richard Galanti.
"Various major brands are requesting longer lead times, and in some cases, difficulty in finding drivers and trucks on short notice".
Shops throughout the world have encountered widespread disruption due to an increase in demand for imports, since the reopening of world's economy ,
It has caused to scarcity of children's toys, timber, new clothes, and pet food in the United States, as well as increased consumer costs.
It has caused to scarcity of children's toys, timber, new clothes, and pet food in the United States, as well as increased consumer costs. oy maker Hasbro and sportswear behemoth Adidas.
And, just last week, a total of 73 ships were compelled to queue up outside two major ports in the United States - at Long Beach and Los Angeles, while port officials worked feverishly to clear the backlog. Prior to Covid-19, it was uncommon for more than one person to wait for a berth.
(Source:www.flipboard.com)
