Best Buy has unveiled a way to earn money from global and recent shipping: subscription. This week, the company announced $ 200 per year program which promises consumers lower prices and access to hard-to-find tools. While these new members also incorporate 24/7 technical support and free shipping, the idea of availability of guaranteed items can be particularly appealing to sellers who are concerned that their orders will not arrive during the holiday season.
The new Buy Buy service is a sure reminder that retailers are not expecting the worst of the company, plus shortage of semiconductor chip worldwide, is leaving soon. Instead, it seems to be getting worse. Extra crunch of petrochemicals, which are used in everything from dye to plastic, has raised prices on all kinds of products. In the meantime, the power to come in China it has led to reduced electricity that has shut down factories and disrupted daily life there. Recent developments are exacerbating the problems that exist in the global company and making the barriers to success more efficient. Combine that with constant shortage of shipping containers and drivers, and the result is a significant reduction in supply.
“You have work-related problems. You have problems with the lack of empty vessels and space on ships. With the increase in the number of ports in the United States, operational problems are common in real estate and real estate, ”Jon Gold, vice president of operations at the National Retail Federation, told Recode. “The whole system is stretched.”
As retailers rush to import goods and electronics that they think consumers may need time to buy on vacation, a growing list goes on. it has made it difficult for them to get enough goods. Now, experts say consumers should expect higher prices, delays, and potential buyers as Black Friday and Cyber Monday approach. And for the next six months, we will not see the things we are used to, according to Patrick Penfield, assistant professor at the University of Syracuse.
The problems are getting worse and worse
Equipment is at risk of extinction because it includes a variety of materials. Think of all the features that go into a new PlayStation 5 or laptop, including chips, external shells, and screens. Many of these regions require their own unique manufacturing equipment, located in various factories and often in different countries. In order for the device to be approved in a timely manner, all of the components must be manufactured in conjunction. So far, this is not happening.
“Most of the people who work in this project do not understand how all the things that are sold are different,” said Willy Shih, a professor of business administration at Harvard, told Recode in August. “I don’t understand that I need capacitors. They don’t understand that I need electronic chips. I don’t understand that I need to be flexible. ”
The value of these products has contradicted the efforts of Covid-19 in countries where the production and assembly of large quantities is actually happening. Following recent delta epidemics and nationwide closures in Malaysia, government selected electronics manufacturers difficult businesses to keep the job going. In May, Vietnam vaccine provided directly to factory workers, while urging smartphone manufacturers operating in the country, such as Samsung, to do the same. (Vietnam’s Covid-19 crisis does not end: Last week, thousands of workers fled the commercial center of the country after the government, which still exists struggling to get vaccinated, epidemics.)
Now, power outages designed to reduce China’s energy consumption make power generation more difficult. This is happening because of a number of complex issues, including global quantity of oil prices; the conflict between China and Australia, which is one of global retailers are aggressive; and China’s efforts to curb pollution ahead of the Fifth Olympic Games. The resulting power outages have had a profound effect on people’s daily lives and are leaving some houses have classrooms without electricity and running water.
China’s rise in electricity has also put pressure on many industries, including manufacturers Apple, Dell, Tesla, and Microsoft, stopping or reducing production. Meanwhile, arms manufacturers and machinery manufacturers in the country are pushing for a reduction in steel after that Steel bars do not really work. Power outage they are also blocking companies that run things like chip chip, test chip, and phone assembly.
On top of all this, the depletion of petrochemicals, which are derived from fats, has made it difficult and inexpensive to make all kinds of materials, including paints, adhesives, and food packaging. In recent weeks, the price of polyvinyl chloride, a chemical used in plastics, has risen 70 percent. Without such tools, manufacturers of everything from credit cards to medical devices to automobiles have a very difficult time keeping up.
“What will happen is that the phone will be delayed because they are waiting for the plastic dealer, and the plastic dealer is expecting this,” said Penfield, a professor at Syracuse. “It only takes one seller – and he can be the maker of everything – to complete your purchase.”
Disruptions in petrochemical production have many causes, but some are linked to companies that have not yet received them. from the fifth hurricane in Texas and several recent hurricanes near the Gulf Coast. This combination shows how the climate is growing as a result of climate change is growing at an alarming rate in many industries.
Consider, too, the holiday season
All of these problems mean that consumers are experiencing higher prices and delays in shipping of goods. That is why those who are looking forward to the holiday season may want to start early, not just on the electronic ones. As Tox Nguyen of Vox said last month, almost anything one might want to buy on vacation seems to be at the top of the globe:
Here is an incomplete list of purchases that have been tracked, delayed, and missing: new clothes, back to school, bike, animal feed, childhood, chairs, cars, high, children’s toys, household appliances, wood, Anything that depends on a semiconductor chip, and crave fast food such as chicken wings, ketchup packs, Taco Bell, Starbucks’ keke pops, and McDonald’s milk shakes (in the UK, for now).
“Obviously, there will be shortcomings in some of the special issues on vacation,” said Seckin Ozkul, of the University of South Florida’s Supply Chain Innovation Lab. “Therefore, if consumers know what they want to buy for their loved ones during the holidays, this is a good time to take action.”
Apart from buying quickly and paying more, there are other ways customers can change. Consumers should consider purchasing items that are not their original choice, because some features, such as the PlayStation 5, may be missing until sometime next year. When shopping online, it may be worth checking out whether local stores have a curbside delivery system. (One useful tool for this is Google Shopping, which can include more information about an item on the market for nearby retailers.)
Another option is to avoid shopping online and to shop for items, antiques. Big chains like Walmart and Home Depot have to help repair their cargo ships, and it seems they can never be without things. Best Buy, of course, expects some people to consider paying $ 200 to get the required items, even though the company has not shared what is included with the app.
Regardless of how customers choose to plan, they should not assume that sales problems will be resolved before the holidays. Since a simple shortage complements another lack, there seems to be no deadline.