28 MARCH / APRIL 2022 ‘I’m Sorry, but...’ Why your items still haven’t shipped PSP SHOWCASE Lately, I’ve been making this call a lot to all kinds of clients, including Indiana banks like yours. This is the result of a supply chain disruption we are currently living with, and it’s frustrating. As a provider of printing and promotional products, Spry aims to deliver the perfect product, at the best price, in the timeliest fashion possible. In the past couple of years, though, the supply chain debacle has made this extremely difficult. Supply Delays Many factors contribute to supply chain problems, directly or indirectly affecting virtually every industry, even banking. Though yours is a service business, you still need forms, supplies and marketing materials to best serve your customers. Following are a few of the reasons that your items may not have shipped: Shipping delays. Suppliers are struggling to find containers for shipping their products and materials. Due to labor and shipping complications, merchandise is left stranded in ports for weeks and sometimes months before it’s unloaded. Shipping costs. Container problems have driven overseas shipping costs through the roof. Many suppliers report that it is next to impossible to find a container to ship with and, when they do, the costs are prohibitive. According to a recent Freightos Baltic Index,* which measures the average market rates for 40-foot shipping containers, costs have increased 546% since January 2020. Paper shortage. If you weren’t aware, there has been a paper shortage for several years – even before panicked hordes were grabbing toilet paper off the shelves – and it’s showing no sign of letting up. Printing jobs that used to take 14 days may now take two to three months. In addition, though paper is typically a stable product with consistent pricing, paper pulp prices have increased almost 50% since the pandemic began. This increase affects the costs of your deposit slips, marketing materials, lobby posters, etc. Labor shortage. Like you, Spry is finding it difficult to attract and retain staff, especially for fulfillment and distribution. Our key suppliers also have had to raise hourly wages substantially, increasing the final price of items. Stock and inventory. Our suppliers (and their suppliers) are simply out of inventory on many items, due to increased demand, diminished access to raw materials, shipping delays and other factors. We’re finding this especially true with apparel in core sizes and styles, which is why we aren’t always able to get you the exact items you want in your first choice of colors. Placing Orders As you focus on procurement practices, you will likely find an opportunity to improve operational efficiency, drive down costs and reduce inconveniences the next time you place an order. Here are some tips for adapting to current supply chain challenges: % Plan ahead. The more lead time you can give us, the better our chances of getting you the exact items you’re looking for. % Order in larger quantities. We used to promote just-in-time production to reduce the costs of production and of storing extra inventory. Until Jeff Williams CEO Spry jeffw@sprybrands.com Spry is a Preferred Service Provider of the Indiana Bankers Association.
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