Friday 28th Oct 2016 - Logistics Manager

Fear mounts over Christmas shortages of electricals

Retailers are facing the prospect of a shortage of the most wanted electrical consumer goods, such as games consoles and flat screen TVs, as we enter retail’s busiest time of the year, warns BravoSolution, the supply management software provider.

It reckons that any suppliers have begun to reduce inventory levels with fears that redundant stock risks significant losses if left unsold.

“As a result, lead times for electrical components have increased dramatically, hitting dangerously high levels that now stand at an 52 days – five times higher than the previous 10-12 day standard. With less than six weeks until Christmas, this is a huge concern for retailers, who now risk being left short of supply of some of the most popular electrical products.”

It says that electrical components such as transistors have been affected most in this aggressive inventory dwindle, risking a serious shortage of the most desired consumer electronics, such as games consoles and televisions, and small appliances, such as microwaves and food processors, this festive season.

Top five potential product shortages:

1. Games consoles

2. MP3 players

3. Televisions

4. DVD players

5. Microwaves

In addition, it warns that there could be significant rise in packaging costs as stock levels run low.

“Not only could this cause a potential shortage of products such as greetings cards, wrapping paper and even decorations, but ultimately this could affect all areas of the supply chain.”

Paul Martyn, vice president of global marketing, BravoSolution, said: “With lead times for core electrical products hitting unprecedented levels over recent months, there is a real risk that many of the most wanted goods will simply not be available this Christmas.”

You can discuss this article at the Supply Chain Standard group on Linked In.