The global supply chain is under some stress this year due to the pandemic, but the crunch may not be as bad as it’s being reported.
Dr. Jason Miller is a logistics expert in the MSU Department of Supply Chain Management.
He says a surge in spending on items like cars, appliances and furniture is causing freight to pile up on the West Coast.
Meanwhile, products that do make it inland aren’t being picked up quickly in rail yards in places like Chicago.
Still, Miller says the data from this past August shows a bump in inventory, as retailers are ordering more than they’ve sold.
“The system, given we’ve thrown so much demand on it, has honestly held up very well,” Miller said. “We’re hearing a lot of doom and gloom, but at the macro level, the data is indicating things are flowing through.”
Miller says retailer purchases in 2021 are roughly 17% above 2019's pre-pandemic levels.
Miller says as the holiday shopping season ramps up, consumers can expect shortages of some specific items, but not widespread loss of entire product lines.