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Supply Chain Disruptions Jeopardizing Critical Q4 Inventory Levels

CSA Packaging is bringing domestic solutions to supply chain problems!

With the critical Q4 retail season virtually upon us, manufacturers, planners and retail operators are all scrambling to fill holes in supply chains that have been disrupted by a variety of factors. Rebound demand from 2020, on-going labor shortages and a work-force still lean due to Delta Variant Covid are all creating the perfect storm to leave gaping holes in inventory and supplies.

With a record 47 container vessels waiting to be unloaded in the Port of Long Beach (typically there are 1-2) and shipping costs skyrocketing, many planners are questioning their long held Asia to North America supply chains and looking for domestic alternatives. CSA can be that solution.

Freight Costs have outweighed the labor cost advantage that Asia has had in the past.

Costs have risen from $2,500.00 to upwards of $25,000.00 per container. This requires the economics of offshoring to be reevaluated. If a certain item is packed 10,000 pieces per container, the freight cost per piece has gone from $0.25 per unit to $2.50 per unit! That does not even include timing delays that industry insiders state have gone from 30 days to 75 days.

Experts are not predicting relief until at least 2023, when additional capacity is due to come on-line and the labor situation is expected to ease.

All of that in mind, the quick-turnaround, low-cost Asia solution for labor intensive and manual operations has been called into question.

CSA Packaging is getting record requests from companies looking for a domestic solution.

With our flexibility, wide variety of capabilities, and nimble stance, CSA is poised to be your perfect partner–with time remaining to deploy for Q4, 2021. Call us today for your kitting, assembly, display and over-wrapping needs. Our team will be the saving link in your supply chain!


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