Business

Amazon’s Christmas Plan in Supply Shortage: Order 4 Weeks Ahead

Amazon Encourage shoppers to buy Christmas According to an internal document seen by, the gift was given four weeks early and the supply chain turmoil is expected to continue at least until next spring. Independent..

According to the company’s planning documents, the UK division of retail giants is expected to ask customers to place orders four weeks before Christmas Eve in the face of global supply shortages. Even Prime customers who are paying for faster delivery can delay their orders.

“We are working to shift the big push of orders coming before mid-December,” said a person familiar with Amazon’s business. “With our resources, we cannot overestimate the level of supply disruption we are facing. It will be a long and very painful path to a new normal path, and Air cargo cannot remove all tension from other routes. “

Reminders said the site and app’s “ It starts with the “Early Purchase” banner. ..

Online stores, like other companies, are tackling global supply chain disruptions that threaten post-pandemic economic recovery. G7 leaders promised to work together on Wednesday to tackle the problems facing world trade.

Images of columns outside some of the world’s largest ports show widespread confusion. Still, the planning document suggests that some of the challenges that challenge the UK are unique to the UK.

The company’s view of the depth of supply shortages and longevity is especially important, as Amazon accounts for more than one-third of UK online retail activity this year, according to company internal estimates. As one of the world’s largest revenue companies, the belief that supply shortages and port bottlenecks will continue until 2022 is also a daunting sign of global growth. That view is also reflected in furniture seller IKEA.

Amazon and other companies are fighting unprocessed containers at container ports due to a shortage of UK HGV drivers, exacerbated by Brexit immigration and tax changes. Demand is increasing due to tensions in the delivery network, making it difficult to secure warehouse space.

“The port can move boxes and load and unload ships. The problem is getting goods in and out of the port.” Tim Morris, CEO of Majorport Group, said.. “You need to manage your storage space carefully. When it’s full, problems start.”

Amazon’s planning documents emphasize that even companies that have enough cash to invest in high-tech logistics features are inevitably caught in the harbor queue. In the company’s view, there is not enough capacity to reroute orders via enough air cargo to offset the impact of other shipping issues, but this is to meet the delivery target for prime orders. Used for.

Amazon said more warehouse space planning permit requests were also stalled by Covid-19’s delay in local governments. And, despite offering higher wages, Amazon, like other companies, struggles to hire enough warehouse workers to staff their operations.

The same person familiar with the company’s business said Amazon’s UK management was concerned. Negative report The working conditions in the company’s warehouse also made it difficult to hire additional staff.

An Amazon spokesperson declined to comment on the details of the plan, but said the company had hired 20,000 temporary positions across Britain “during the festive season.”

They provided workers with a safe environment, adding that “competitive wages start at £ 10 to £ 11.10 per hour, depending on location.”

The planning document also states that some estimates of when supply chain disruptions will be mitigated are too optimistic.

At the Central Bankers’ August Summit in Jackson Hall, Wyoming, Federal Reserve Board Chairman Jerome Powell said, “Supply problems have begun to be resolved,” and the world is quickly eased. increase.

However, this has not been proven to be the case, and US President Joe Biden has announced that the Port of Los Angeles will open on Wednesday. 24/7 operation To tackle that congestion. Demand for pent-up after a pandemic ShippingAccording to Amazon’s plans, it boosts costs in markets that often require at least two years to increase capacity, and outside experts.

Phil Chessworth, Managing Director of Midland Pallet Trucks, a supplier of industrial equipment, said: “Containers that arrive this week will not be delivered until November. It’s scary.”

The cost of shipping containers has skyrocketed, can cost £ 3,000 to ship before a pandemic occurs, and is now £ 20,000. “For us, a product in one container may be worth £ 36,000,” Chesworth said.

Some of Midland’s products are stuck in China, according to Chesworth, as shipping companies prioritize more profitable, lightweight cargo. “We are behind the queue.” The warehouse issue has been added to the growing bill.

Small high street retailers are also in pain.

Kenny Kaneko, owner of the London Tree House in Notting Hill, London, said she had been waiting two months for inventory to arrive, during which time toy prices soared.

He said Independent: “It was hard to get things. When you get them, you get what you want, but it goes very fast and it’s hard to get it again. Delivery starts from a week to arrive. It took me two months. Some of the big companies haven’t received it yet.

He said. “I’m a small shop. I have to accommodate a wide range of children. I don’t have storage space so I only order small quantities. I try to order in advance as much as possible, but how much do I need? Is unpredictable. ”

A representative of Felixstowe Port, which accounts for 36% of UK freight container transportation, said: Independent The container was nearly twice the pre-pandemic average, spending an average of 10 days on the site.

Meanwhile, some containers on their way from China to Europe were delayed by up to 30 days, according to data from shipping statistics company Project44.

Josh Brazil, Vice President of Supply Chain Insights at Project44, said: Transportation sector.

“These supply chain problems have not been resolved, as maritime delays are exacerbated and rising cargo prices mean that shippers cannot buy their way.

“According to container tracking data, shipping companies’ schedules continue to decline in reliability, with the worst-damaged China-EU route in September up to 30 days and the worst-damaged China-US West Coast route. “It’s 21.94 days late,” Brazil said. “If this situation continues, we’ll see more empty shelves for the holiday shopping season and beyond.”

Additional reports by Ben Chapman, Holly Bancroft and Chiara Giordano

Amazon’s Christmas Plan in Supply Shortage: Order 4 Weeks Ahead

Source link Amazon’s Christmas Plan in Supply Shortage: Order 4 Weeks Ahead

Back to top button