In a world where information overload is common, it’s possible you’ve missed the buzz about the global supply chain crisis. But make no mistake; this crisis has left no one untouched. If you’re wondering what this supply chain fuss is all about, let me enlighten you. Below, I’ll shed light on how businesses are tacking on hidden costs to your purchases.
Demystifying the Supply Chain
To put it simply, the supply chain encompasses the entire journey of producing and selling commercial goods. It involves every step, from sourcing raw materials and manufacturing to distribution and final sale. In essence, it’s the life cycle of products, from creation to delivery.
The Supply Chain Surcharge
Picture this: I recently ventured into my local Sherwin-Williams store to acquire a gallon of paint for my bedroom. Given the steep price of quality paint, I usually buy a gallon at a time to spread out the expense. Sherwin-Williams paint is my top choice, and I don’t mind the premium for its exceptional quality.
However, as I glanced at my receipt upon exiting the store, I was taken aback by a 4% supply chain surcharge. This, my friends, is effectively an additional tax atop the regular sales tax!
Now, it’s not only consumers like me who are affected. How many contractors scrutinize their receipts? How many of them are inadvertently inflating their expenses by not accounting for this extra 4% fee when bidding on projects?
Other Supply Chain Hiccups to Ponder
Supply Chain Shipments – Lost at Sea?
In another instance, I ordered spirit wear for my son’s football season from our school’s spirit shop, thinking I was supporting a local business. Little did I know that it would take a painstaking two months for our items to be printed and shipped. By the time they arrived, the football season was nearly over, and we humorously speculated that they were “stuck on a ship somewhere in the ocean.”
This experience underscored the importance of considering the origins of your purchases. Opt for American-made products whenever possible and go the extra mile by supporting local businesses in your community.
Towards the end of the season, before my order finally arrived, I discovered a local business that crafted a shirt for me to wear at my son’s games.
Vox published an insightful article detailing how the logjam of ships at ports is impeding the distribution process.
Labor Shortages
It’s an indisputable fact that labor shortages have plagued nearly every industry. When President Biden began providing substantial financial support to the unemployed, it deterred many from seeking employment.
Companies responded by increasing their minimum wages. Even my 16-year-old daughter secured a job at Dairy Queen paying $14 per hour. However, this wage hike has a ripple effect, causing consumers to shell out $9.50 for a single cheeseburger meal at fast-food joints.
Delivery companies are also grappling with a shortage of truck drivers. I, for one, experienced this firsthand when I ordered a package from Amazon, and it mysteriously ceased tracking in Houston, Texas. It’s a frustrating ordeal, and I’m almost certain my package was pilfered.
This new normal seems unlikely to change anytime soon. So, what’s the best course of action?
Supporting Local Businesses
Whenever possible, keep your hard-earned money within your community. While I still make occasional online purchases, this year I’m deliberately seeking gifts from Florida-based businesses, particularly those in my hometown of Gulf Breeze.
If the lockdown taught me anything, it’s the value of getting out and experiencing more. And what better way to do that than by purchasing gift certificates for fishing excursions or boat rentals from my friend Kirk at Keysailing?
I’m also exploring handcrafted soaps made by local artists here in Gulf Breeze, available at Pizzaz.
My friend Jen at Jen’s Designer Deals has begun hosting Botox parties, where guests can shop at her boutique and enjoy a glass of wine while awaiting Botox or Dysport injections by a doctor from Emerald Coast Med Spa. These parties have proven to be a successful way of keeping her business thriving amidst the pandemic.
The Power of Your Vote
Without delving too deeply into politics, it’s essential to recognize the impact of your vote. When you’re faced with higher prices at the gas pump or unexplained “surcharges” tied to supply chain or labor shortages, remember that your leaders, at the state and national levels, directly influence these matters.
Florida is currently thriving while many other parts of the country are struggling. This discrepancy in outcomes can largely be attributed to differences in leadership, and the results speak for themselves.
In conclusion, the supply chain crisis we’re witnessing is a consequence of inadequate leadership and responses to the pandemic by our current administration. It’s not the pandemic’s fault; it’s the way it’s been managed.