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University At Buffalo - News Center: UB School Of Management Experts Say Shoppers Should Anticipate Gift Shortages And Shipping Delays ...
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BUFFALO, N.Y. — This holiday season, expect shortages of gift items like toys, clothes and appliances, as well as delays in order fulfilment—all caused by global supply chains disruptions.
That’s according to Nallan Suresh, UB Distinguished Professor of operations management and strategy in the University at Buffalo School of Management.
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“‘Shop early and avoid the Christmas rush’ is consumer advice we hear every year, but it’s even more important this season,” says Suresh.
Mike Wei, assistant professor of operations management and strategy in the UB School of Management, agrees with Suresh’s supply chain forecast.
“This holiday season will be a roller coaster ride,” says Wei. “Suppliers and manufacturers have been working exceedingly hard to squeeze the last juice out of the supply chain. Yet, given the pervasiveness of the global pandemic, there have been constant interruptions, creating a sense of uncertainty. This has had a ripple effect on the supply-and-demand relationship and further fueled the supply chain mismatch.
“What we will see in this coming holiday season are two extremes: Most understocked products will be sold at a premium and run out of stock soon, while other overstocked products will be sold at a loss.”
Given the supply and transportation issues, sales of experiential products like restaurant and spa gift certificates are likely to increase this holiday season, according to Arun Lakshmanan, associate professor of marketing in the UB School of Management.
He also expects prices to go up, due to supply shortages and changes in shopping habits following the pandemic.
Suresh says many of the current supply chain woes are attributable to COVID-19, but can be traced back even further to the trade war period before the pandemic. He outlines some factors impacting supply chains:
“Even as we are busy addressing every bottleneck in current supply chains, the medium- and long-term goals of diversifying our supply sources should not be forgotten,” says Suresh. “Supply chains that are too long and globally extended have numerous sources of vulnerability. Shorter supply chains, with closer-to-home production nodes, must be cultivated to ensure greater resilience.”
To schedule an interview with any UB School of Management supply chain experts, contact Kevin Manne, assistant director of communications, at 716-645-5238 or kjmanne@buffalo.edu.
This press release was produced by the University at Buffalo - News Center. The views expressed here are the author’s own.
