The Supply Chain – Make that the Supply Ball and Chain

It’s all well and good for a blog like this one to share hot home design trends and uber-cool new home furnishing lines from various manufacturers like Kravet but – there just hadda’ be a “but”, right – but, we still have serious supply chain issues. And, according to some, the problems won’t be ending any time soon.

We don’t want to beat a dead horse on this subject but, while this particular horse is very ill, it’s still far from meeting its maker.

In a recent article at BusinessOfHome.com, author/editor Ray Allegrezza began a multi-part series that purports to analyze the problems with the supply chain and predict some sort of resolution. (Or, at least the potential for resolving these challenges!)

“Perfect storm isn't just a metaphor,” he declares. “In February, severe ice storms shut down the power grid in the Gulf of Mexico, shuttering four major chemical plants in Texas and another in Louisiana, which drastically reduced the availability of chemicals needed to produce foam used for furniture.

“Key upholstery sources began telling customers to expect a series of price hikes on goods, [along] with surcharges to help offset skyrocketing container and transportation costs. And since this was all part of the movie we are calling “The Perfect Storm”, this series of problems – raw material shortages; price hikes for fabric, foam, wood, metal, and more; and related disruptions in trucking, logistics, workforce, and beyond – hit precisely when demand was going through the roof.”

The “Perfect Storm”, indeed.

Doxing the West Coast Docks

Is it doxing if the info you share is true and already public? Who knows.

What we do know for certain is that the largest ports in the US; Los Angeles and Long Beach in the San Pedro harbor of Southern California, usually handle the great majority of imports from Asia. Currently, however, some 100-150 container ships are floating nearby and unable to dock and unload.

Further, once a ship does unload its cargo, there is a backlog of containers waiting for trucks – and drivers – to haul them across the country. Ports up the coast in San Francisco and Seattle simply do not have the capacity to handle the overload.

As a result, other ports in Texas, Georgia, and even Florida have begun to see a substantial increase in shipping. This, despite the added time and expense of traversing the Panama Canal (if it’s not backed up, as well).  These ports are also nowhere near as large as those in Southern California, meaning they do not have the capacity needed to relieve the backlog anytime soon.

If patience truly is a virtue, those of us in the furnishings and design industries must learn to possess ourselves with it.

“Another indicator that industry challenges will persist is a just-tabulated survey taken among 1,500 independent sales reps who are members of the International Home Furnishings Representatives Association. When the survey asked them to share how the pandemic has impacted their businesses and when they foresee these issues improving, 33 percent said mid-2022. Another 29 percent said late next year – and, tellingly, 30 percent said things would not improve until the very end of next year.”

So, according to the sales reps, those who should know since they exist between the manufacturers, dealers, and designers, we’re in for another six to twelve months of this craziness!

What Can You Do?

Besides being patient and hoping things get better for no discernable reason other than faith, the best path for dealers and designers to cope with the supply chain mess is to keep working with suppliers you know and trust. Keep these relationships open at all costs, and keep the lines of communication as wide open as possible between you, your suppliers, and your clients.

Further, it’s our fervent hope that you think of TD Fall as one of those reliable suppliers. We also hope that our relationship with you has made you confident in our ability to not only meet your product needs, but that we also keep you informed of anything that may impact them. If you have questions or need more product information, feel free to… Get in touch with TD Fall today.

Furniture Delivery Delays – Why Are They Getting Longer Instead of Improving?

OK, before we get into the subject of furniture delivery delays, there is something that simply MUST be said. Covid-19 did not cause shipping delays – in ours or any industry. No virus in the history of the world can cause that. However, the reaction to it can, including lock-downs, stay-at-home orders, mask mandates, factory shutdowns, and the myriad of other restrictions that were placed on individuals and businesses.

Having said that, the question must be asked, where does that leave us?

Well, it too often leaves us with delays in delivering the furnishings we’ve been accustomed to getting much more quickly for our clients, and you for yours. Sometimes ridiculous delays, perhaps up to nine months! (Yes, we’re aware that is a sentence fragment but it was the best way to clarify and emphasize the point. Sorry, not sorry!)

So, where does that leave us? Looking for answers from some slightly unusual sources. Now, news sites may not be considered unusual sources for any number of subjects but, in this case, we’re thinking industry sources could be a bit too optimistic. Because of this, we trolled a few sites that would give us the skinny without self-interest as their motivation (hopefully).

Why Is This Happening?

Be advised that some of the reports we chose were published in late spring and early to mid-summer when all of the craziness began – or became recognized. And, some product categories have either not been heavily impacted or are beginning to recover nicely. Still, it cannot be denied or avoided when dealing with homeowners, there are still some serious problems leading to unprecedented lead times for fine furnishings.

As one of the stories from a local ABC affiliate in the Cleveland area explained, “Increased demand, plus truck driver shortages, shipping docks and ports being packed, supply chain logistics issues, and storms in Texas and the southeast impacting factories that make a chemical needed in sofas and mattresses – well, it’s all caused longer than ever lead times.”

Earlier this year, furnishing lead times began to grow from a few weeks to a couple of months. Soon though, four to six months became the norm for many furniture suppliers. Now, thanks to those shortages and the lack of skilled labor, combined with the trucking problems and backlogs at some of the largest harbors and piers, nine to ten-month lead times are not out of the question.

An interesting development we found at CNN was the impact on a source many have no idea is critical to the furnishings supply chain: the country of Vietnam. That’s right, our former enemy has become a major competitor to China as a supplier of clothing and shoes (Nike), as well as upholstered furniture.

According to the article, this summer was a tough time in the Southeast Asian country as they suffered from a dramatic rise in Covid cases. “With factories in Vietnam shutting down due to the outbreak, the front-end of the United States furniture supply chain is badly affected, said Mark Schumacher, CEO of Home Furnishings Association, an industry group representing more than 1,500 retailers.”

Unfortunately, the industry has not fully recovered from these delays, especially in areas that were already struggling thanks to the winter freeze and storms that affected foam deliveries so dramatically.

A Perfect Storm – When Demand is Greater Than Supply

As many have said, the situation has become a perfect storm of homebound people deciding to upgrade their furnishings while the suppliers are struggling to supply even the most basic items: upholstered chairs and sofas, mattresses, and dining room sets. Much like a traffic accident during rush hour, once the flow is halted, the backup (or, in this case, backlog) grows beyond the ability of those in the rear to make progress – or even to know why they’re stuck!

And so it was and, to a significant extent remains, in the furnishings industry.

It’s not ALL bad news though. For example, here at TD Fall, we’ve begun to see a nice uptick in availability from more than a few manufacturers. Fine rugs and wall coverings were only marginally affected, most commonly due to shipping issues rather than a lack of components or labor.

Also, most of our suppliers have had little to no problems shipping accessory items and complementary pieces. Because of this, and as we suggested in a previous post on strategies for coping with delivery delays, many interior designers and furnishing retailers are delivering orders piecemeal where possible. That is, for many clients, something is better than nothing and this can make handling extended lead times easier for all involved.

As we shared then, and continue to believe, “You must… Be open with clients. Never hide extended lead times or other availability issues. Always communicate in both directions: with clients and suppliers. Always share the results of your communication as needed – not just when it might benefit you in some way. (Getting the bad news out of the way upfront will nearly always benefit you in the long run.)” (Is it OK to quote ourselves? Oh well, we did so… )

What’s Next?

Normally, a significant spike in demand like the one we’ve seen in our industry would have all of us drooling at the potential for a big jump in sales or design projects. Instead, 2021 has caused more tears of frustration than feelings of joy at such possibilities.

There is, however, a light at the end of the tunnel. In fact, if our experience at the recent High Point Fall Market is any indication of where we’re headed, optimism should be your next choice. Frankly, we had one helluva showing and, based on what we heard from our clients, fully expect the increased interest to continue.

We’re also seeing lead times gradually shrinking and are delighted that we can deliver more quickly than many expected.

Of course, part of that is thanks to the long relationship we’ve built with the industry leader, Kravet. With so many brands in so many categories, and because they ARE the industry leader with the power to demand exceptional service from their suppliers, product has begun to flow again. Granted, there can be hitches in the giddy-up even for a powerhouse like them but, overall, their century of experience and business relationships has helped us help our clients take care of business where others may struggle.

That said, most of our other lines are improving as well.

So, if you're frustrated, take a bit of comfort in knowing you're not alone. Then, if you're ready to find ways to move past some of those frustrating furniture delivery delays and make your design clients happy… Get in touch with TD Fall today.