Denver, Colorado 2021-10-15 22:26:54 –
Denver — Holidays mean a big business for the toy industry, but this year there is uncertainty despite President Joe Biden’s announcement of 24-hour operation at the Port of Los Angeles to clear supply chain blockages. ..
Ed O’Brien, founder of the past 6-7 months B4Adventure He estimates that he lost about $ 1 million in profits due to the strangler figs in the supply chain. Loss of revenue was a combination of soaring container prices, product delays, and lost sales, leading to layoffs.
“Old containers cost $ 6,500 to transport containers from China to Denver, and now they cost $ 30,000,” O’Brien said. “Previously, it took 30 days to ship a product from China to Denver. Now it takes 3-5 months.”
The developers of B4Adventure create toys and order products from China. The company sells to major companies such as Target, Costco and Dick’s Sporting Goods. That is, orders and prices are set a few months in advance.
“Some retailers understand the delay, but they still need inventory. Some of them were seasonal and I lost my order because they didn’t really fit in that window.” Said O’Brien.
Some shelves were empty in one of the three warehouses in Denver. According to O’Brien, all shelves are in stock at this time of the year in preparation for the holidays. The company is short of carefully selected products and is overstocking other toys.
On Wednesday, Biden announced a 24-hour operation at LA Harbor, one of the busiest ports in the country. This move aims to mitigate supply chain problems. Target, Wal-Mart, and other major retailers will expand their night operations to meet their delivery needs.
While this effort has brought hope to some business owners, Jack Buffington, an assistant professor of supply chain management at the University of Denver, called the move a “band-aid fix.”
“Short-term relief of any kind is just gradual,” Buffington said. “It will solve some problems at the port of origin, but you still have the same problem at a gridlocked US port, and you are still a truck driver to drive to the store I need it. “
He said port officials are doing their best and must continue to comply with employment contracts.
O’Brien said he wished the president could address the issue sooner, but said he was grateful that something was happening.
“Hopefully, the inventory that was supposed to be here will probably speed up.”
NS Toy company We plan to sell in the warehouse on October 22nd and 23rd to make up for the loss of profits.
Denver toy manufacturer dealing with supply chain crisis firsthand Source link Denver toy manufacturer dealing with supply chain crisis firsthand