Any business that sells products has likely experienced the supply chain disruption effect. As a hotel owner or front desk manager, you have pivoted to keep your hotel doors open and ready to welcome guests. As more people begin to travel, you’re going to need to replenish hotel supplies sooner rather than later. However, you may have noticed that it may be taking longer to receive an order than usual–this is a symptom of these supply chain issues.
Front Desk Supply has noticed that about 20% of our customers have experienced delays for their orders just due to shipping issues and this delay is ranging from 2 to 4 days. There are a few other things besides shipping happening and the combination is further impacting lead times. Why is this happening? Let’s take a look at the supply chain issues facing hoteliers, and what the government is doing to help.
Local Production Delays
Your product orders may be slightly delayed for a few reasons. Front-end issues, such as broken machines in production lines, can have a ripple effect in the creation of products. If an item requires multiple steps to be created, any delay in the process can affect the end-product timeline. Suddenly, a two-day turnaround becomes a five-day turnaround. This is inconvenient for businesses as they face a strict schedule or have an urgent need. We do our best to manage these types of delays, but not all parts of a machine are ready to receive backup options.
Additionally, back-end delays can cause problems for product orders. Back-end issues typically come from shipping carriers who struggle with getting orders out and delivered on time. A combination of front-end issues and back-end issues can cause delays. This issue can also be caused by the shipping carrier itself if they are overwhelmed with parcels and cannot complete deliveries on time.
Services from delivery providers have been significantly impacted as on-time performance has decreased from regular levels. In September, on-time performance for FedEx was 85.1%. In comparison with UPS at 95.2% and the U.S. Postal Service at 95.5%, FedEx performance was much lower. ShipMatrix, a software provider that analyzes shipping data, noted that on-time delivery percentages were down from August for all of these shipping carriers. Representatives from USPS, UPS, and FedEx were not available to comment.
Related Article: U.S. Travel: International Travelers to Return
Global Production Delays
On top of production delays locally in the United States, there are also global production delays. When production companies outsource their raw materials, products – like hotel supplies – can take longer to be completed. For example, raw materials from China (the majority of chips come from there) will take some time to arrive. Then you must wait for the materials shipped in, create the product, then send it to customers. If one component of the production process is not working efficiently – a ripple effect will occur and slow the completion time.
Related Resource: Holiday Helper: Download Your Custom Item Inventory Checklist
The President’s Plan to Regulate the Supply Chain Issue
An influx of ships due to high demand and shorthand labor caused by the pandemic combined created massive delays at United States ports over the last year. Despite making progress, the supply chain is still not moving fast enough to even out the delays. To relieve the pressure on the ports, President Biden has announced the Port of Los Angeles will shift to 24/7 operations, similar to the Port of Long Beach, in hopes of improving the situation.
Biden noted, “This is the first key step to moving our entire freight transportation and logistical supply chain nationwide to a 24/7 system.” (Source)
Shop Custom Hotel Supplies in Advance with Front Desk Supply
All in all, we see that progress is being made by the government to alleviate bottlenecking at the ports. However, until the supply chain issues are resolved you should continue to expect delays on orders, such as hotel supplies. By understanding that delays cannot be avoided and ordering custom supplies well in advance, you can give your hospitality business the upper hand and ensure that your busy season is smooth and less stressful. We are doing our best to stay ahead of any issue we can.