opinion

A Look at the Impact of Supply Chain Issues

A Look at the Impact of Supply Chain Issues

For most of the world, this March marked the one-year anniversary of COVID- 19 changing life as we all knew it. Lockdowns went into effect statewide, European nations closed their borders, and many businesses were forced to shut down. A year later, with virus case numbers decreasing and vaccines being steadily distributed, life is slowly returning to some type of “normal,” but many businesses are still experiencing the lingering effects of a worldwide pandemic — including adult manufacturers, distributors and brick-and-mortar retailers.

Supply Chain Disruptions

Some of these [product] substitutions wind up being a big hit with consumers, and a line that might not have gotten a chance in a store now becomes a new bestseller.

For vendors/manufacturers, the supply chain is a crucial part of doing business, as most goods are made in Chinese factories, then shipped to the vendors in the U.S., Europe and other parts of the world. A majority of vendors get their goods by container ship, as it’s a much more cost-effective method than paying air freight.

Containers, however, have grown scarce. Goods that would normally be shipped by air — like iPhones — are being diverted to containers. And as containers are considered a surplus item for China usually, that’s saying something.

The sudden mass shutdowns last year created a chain reaction — container ships arrived into their destination ports, but shelter-in-place orders prevented actually delivering the containers where they needed to go. So cargo ships were stuck in port, unable to unload full containers and take on empty ones to be returned, and everything bogged down from there. And because of the scarcity, prices are rising steadily. Container shipping prices have almost doubled since the fall of 2020.

And this is just one small part of the supply chain.

Material costs are rising, which makes products more expensive overall. Transportation costs beyond ocean- and air-freight are also increasing, as equipment like chassis and trucks are also in short supply, and space is at a premium.

All of this adds up to an increase in costs and delays in getting product out to customers.

Increased Number of Backorders

From late spring of last year until probably around early December, distributors were facing unprecedented numbers of backorders. Strictly speaking, no one really could have prevented the backorder issue that occurred this past summer. First, the abrupt shutdown that caused the container shortage caught much of the world off guard.

Second, no one expected that the spring and summer months would see unprecedented sales through ecommerce channels. Once brick-and-mortar stores opened in late spring/early summer, they had enormous growth in sales as well. Normal forecasting simply didn’t work; the pandemic skewed all the numbers. Manufacturing orders to China were delayed due to factories being shut down, short staffed and having limited hours.

Simply put, demand outstripped supply, and vendors have been playing a game of catch-up that is only slowly closing the gap. With the rising costs of getting goods from China to destinations like the U.S., and the continuing shortage of containers, it will be some time until things go back to normal and the backlogs of orders are fulfilled.

Finding Substitutions

For distributors, the backorder situation means that a lot of bestselling products are not getting out to retail stores. Retailers who normally only purchased from one or two specific distributors are now buying from other distributors, as the availability of product fluctuates from one source to another.

But empty shelves don’t pay bills, and retailers have to turn to substitutions in order to have products to offer their customers. Finding substitutions takes time as one has to comb through pages upon pages of a distributor’s offering, hoping to find something similar to a bestselling product.

This isn’t completely a bad thing, though. Some of these substitutions wind up being a big hit with consumers, and a line that might not have gotten a chance in a store now becomes a new bestseller. So this is more an issue that also happens to have a silver lining — for some vendors anyway, that is.

Personnel Shortages

And finally, one of the most persistent issues brought about by the pandemic? Staff and personnel shortages. With stimulus checks being handed out by the government, a lot of people who were laid off last year decided they didn’t need to return to work — which left businesses short-staffed.

In a small brick-and-mortar store that only has a handful of employees, losing just one person puts a big strain on the rest of the employees, and finding — and training — replacements is not always easy.

Virtual vs. In-Person

The pandemic is not over, but we are all getting used to a “new normal,” whatever that might ultimately wind up being. The issues facing the adult industry are all part of that “new normal,” and though we miss traveling, trade shows, and engaging face-to-face with our customers without having to worry about the virus, we have adapted to the changes the last year has wrought, and will continue to do so long into the future.

One of the most positive things to have come out of living in a locked-down world is the way the adult industry embraced an entirely new way of doing things. Zoom meetings, virtual trade shows, educational video content and live streaming sessions brought us into the 21st Century. Social media has become our new playground, where manufacturers, retailers and distributors can connect through groups like P3 and SPAM.

As an industry, we have become more inclusive, and though we might still face challenges, we will do so together, just as we always have. Gotta love what we do!

Bob Pyne Jr. is the president and CEO of Williams Trading and its affiliates. He started working with the founder of the company, his father Robert Pyne Sr., in June of 1996.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Why BDSM Furniture and Sex Machines Make an Ideal Match

For BDSM enthusiasts and curious newbies alike, a big part of the fun is discovering and exploring exciting new sensations and scenarios. One way to level up is by combining or layering pleasures you already enjoy, and one surefire way to do that is with BDSM furniture.

Rebecca Weinberg ·
opinion

Tips for Boosting Ecommerce Revenue With Behavioral Insights

At our marketing agency, we focus on using real data to make better decisions for our clients. We believe every action a visitor takes on a website can tell us something important. This helps us shape our strategies and assist our clients in turning casual website visitors into loyal customers.

Lauren Bailey ·
opinion

A Look at the Do's and Don'ts of Gift-With-Purchase Promos

Imagine you’re at a store, deciding between two products with similar packaging, features and pricing. You’re not predisposed toward either brand and you haven’t seen any reviews — but one of them offers, “Free gift with purchase!” Does that win you over?

Vanessa Rose ·
opinion

Tips for Navigating a Completely Remote Job in Sexual Wellness

Anyone working in the sexual wellness and pleasure sector has at some point had to deal with issues like bias against the industry, as well as limited marketing and advertising options.

Bryony Lees ·
trends

Meet the 2024 Class of Up-and-Coming Pleasure Brands to Watch

With each new year that rolls in, new pleasure brands emerge, and 2024 is no exception. Already this year, a slew of new entrants are rapidly gaining traction and recognition via social media, among retailers and distributors — and most importantly, end consumers.

profile

WIA Profile: Sarah Franson

When you do what you love, they say, you’ll never work a day in your life — and when your job involves educating the masses about sex toys, it’s hard not to love what you do.

Women In Adult ·
profile

Popsi Lingerie CEO Sam Golshan Discusses Brand's Growth, Mission

Lingerie: a sexy French word for an alluring little something to spark things up in the bedroom, teasingly wear out to clubs, dress up in to celebrate a special occasion or just wear under everyday clothes to feel excited and desirable.

Kim Airs ·
profile

Honey Play Box's Joreail Armstrong Reflects on Company's Growth

Today, Armstrong serves as business development manager for boutique sex toy brand Honey Play Box, but he began his role there as a one-man marketing department, assisting CEO Shirley Wang with nearly every aspect of launching the brand.

Sofia Barrett-Ibarria ·
opinion

How Awareness Revolutionized Materials Used in Pleasure Products

Today’s manufacturers and consumers are material-savvy, giving rise to pleasure products that are safe to use, beautiful to look at, high-quality and even environmentally responsible.

Eric Lee ·
opinion

How Sex-Ed Lays the Groundwork for Well-Informed Shopping

We often do some research before making purchases, whether by delving into a company’s background, exploring specific products or simply making sure we understand how to use something before we buy it.

Nathan Hammerle ·
Show More