Relief surrounding freight and transportation costs, capacity, and other supply chain snarls have continued to ease. But like with many things, other challenges still linger in the supply chain industry.

One challenge that still lingers is manufacturers are still cautious, as shortages of key parts still remain, which has held up production lines and put a damper in productivity. Another challenge is for retailers to keep up with vigorous sales, as well as, clearing out inflated inventories.

Resiliency Continues, Challenges Remain

Largely for the last few years, retailers and manufacturers struggled with the shutdowns, bottlenecks at ports, rail yards and warehouses.

These snarls have had an influence on some companies, some of which decided to cut back on slower-selling products and increase prices on certain products, the Wall Street Journal notes.

Importers of finished goods – products that have completed the manufacturing process but have yet to be sold to customers – are the ones who are reaping the benefits the most from the easing of supply chain snarls.

Hasbro, a game company, said supply chain delays should not be as much of an issue this year as they were in 2022. In an earnings call, the Hasbro CEO mentioned how the company had to delay two big game releases by two to six months last year, because of the supply chain bottlenecks.

For manufacturers, it’s a little bit of a different story as they are still facing shortages on key parts.

Dave Regnery, CEO at Trane Technologies PLC, an air-conditioning manufacturer, said in an early February call that while supply chain issues have improved, it would take “several quarters before the supply chain gets back to what I would call normal.”

The supply chain right now is certainly not perfect, but most (if not all), would agree it is much better than what it was like the last two years.

Looking Ahead

Should you have any questions regarding this and how it could impact your shipments, please reach out to our team today.

Additionally, we have our weekly market updates that can provide you with relevant freight news, updates, developments across the industry, and more.


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