Why The Global Supply Chain Is Delaying All Your Orders

So, What’s the Deal with the Supply Chain?

The first key factor to understand here is that, while we have been in the pandemic for years, all of the shipping delays being experienced now are the result of a ripple effect stemming from the very earliest days of quarantine in spring 2020. Here’s a breakdown:

• At the start of the pandemic in 2020, many factories all over the world (responsible for a huge variety of products and goods) temporarily shut down or scaled back production.
• The scale-back was due to concerns for workers’ safety, but also due to an (incorrect) assumption that there would be much lower demand for many goods as consumers tightened their belts in an uncertain economic climate.
• The home industry specifically experienced a huge boom during 2020–this was good for revenue streams, but it posed a challenge when it came to demand far outpacing supply.
• The home industry boom created shortages for many types of raw materials, and therefor the price of materials went up and so did the price of shipping.
• In addition to a shortage in shipping containers (caused by a slowdown in manufacturing the containers themselves), there is now a huge backup in shipping routes and container ships literally can’t get slots at their ports on time.
• When we say something is “on the water,” it means that ports can’t be cleared to unload; this affects all the shippers across the country on every level (including with FedEx and UPS). There’s also a worker shortage both in terms of factory workers and shipping workers.

These system clogs are happening all over the world. Add backups and disruptions to container ship routes and the now-much-higher cost of shipping…and yeah, it’s a hot holiday mess. If only Santa could swoop in on his sleigh and do all of everyone’s deliveries for them! Here’s an example:

• You may have a factory in Vietnam that makes a special component of a lamp made in France.
• Even if the lamp factory increases production as much as they possibly can, it means nothing if the factory in Vietnam is operating at half capacity due to COVID safety procedures.
• Then, by the time the lamps can ship, the timeline is already behind schedule and there are so many more lamps to go out than usual that the normal shipping process can’t accommodate them all.
• Not to mention that the shortage in shipping containers means that maybe all of the lamps are finally ready to ship, but there’s no container to put them in.
• And finally, at this point the cost of the component from Vietnam has sky-rocketed and the factory in France now has to revaluate all of its financial structures, making it harder for them to hire all of the workers they need at a reasonable wages–so the cost of an individual lamp not only goes up, but it’s now taking even longer to make the lamp.

Shopping Tip #1. Plan Ahead As Much As Possible

The most effective way to tackle the supply chain-related issues is to plan ahead as far as you can when it comes to your shopping decisions. This means you should get a jump on any ordering of smaller giftable items for the holidays now (not the second week in December–NOW!), and that you should adjust your expectations when it comes to larger or made-to-order furniture pieces. 

#2. Take Note of Customer Service Quality

When making some tough shopping choices this holiday season–like when you’re trying to decide about ordering an item you love from Brand A but the shipping timeline is long, versus buying a sort of meh item from Brand B but that you think you might get a tiny bit sooner–one surefire way to tell if you’re going to have a positive or negative experience (and let me remind you, every single retailer, especially in the home space, is dealing with the same supply chain challenges) is to look at what a company’s customer service offerings and policies are.

#3. Don’t Sleep on Black Friday & Cyber Monday Sales

Okay, so you might be thinking that the traditional post-Thanksgiving Black Friday and Cyber Monday sale period is going to be a bust this year. Not so fast! One liberating thing about having the knowledge that many big-ticket items will be delayed no matter what is that you can feel free to take advantage of all the amazing savings you can regardless of whether something will arrive by Christmas (spoiler alert in case you hadn’t caught on: If you order a sofa on Black Friday you will not have it by Christmas, or Hanukkah, or Kwanza, or Boxing Day…or even Valentine’s Day most likely).

One thing I would really emphasize during this topsy-turvy time is that you shouldn’t turn away from making your furniture buying choices just because items will take longer to ship, and the same goes for investing in premium pieces that you know will have a super high level of craftsmanship and design.

In the same vein, across the furniture industry, there are going to be delays, so it really makes more sense than ever to actually invest in quality. “I think the main argument for us still stands that there is just less waste in investing in premium furniture,” says Joanne Lee, Dowel Furniture, Co-Founder. “If you buy something that lasts, you won’t have to throw it out in a few years and that is still true despite having to wait longer.”

#4. Consider Creative Gift Ideas (Like Our Interior Design Packages & Gift Cards)

If you want to give a holiday gift that’s super-special and that won’t be subject to the whims of the global supply chain, my advice would be to get creative and give the gift of Interior Design! At KKH, our Design Services packages are always a great choice, but as a holiday gift (especially for that person you know who seems to have everything!) they’re a unique option and you can print the details of the package out and wrap them up in a pretty box under the tree! Ditto for our Kathy Kuo Home Gift Cards (available in amounts of your choosing).