The supply chain crisis that plagued the promo industry in the wake of the coronavirus pandemic is largely over, and the numbers reflect that. Though about three-quarters of distributors lost an order due to supply chain disruptions last year, fewer than half expressed major concerns about such issues lingering in 2023. For suppliers, inventory levels no longer rank as a top concern. But as the last few years have taught us, the status quo can change in the blink of an eye, and the specialized skillsets of nimbly sourcing and building contingencies that many cultivated during the pandemic are likely to be of use well into the future.
Hover over the bar charts to see more detailed State of the Industry statistics.
The percentage of distributors who said they were concerned about the impact of tariffs. Last year the figure was 72%.
EXTREMELY CONCERNED ABOUT SUPPLY CHAIN DISRUPTIONS
“Things are better than they were in 2021, but not as favorable as they were pre-COVID. The biggest supply chain issues still to come are the unknown.”Mike McMillan, RiteLine
(asi/82498)
Three-quarters of distributors (74%) lost an order due to a supply chain issue in 2022. In 2021 the figure was 78%.
of suppliers believe supply chain issues will have improved significantly by the end of 2023.
PERCENTAGE OF ON-TIME ORDERS FROM SUPPLIERS
(As reported by distributors)
When suppliers were asked to name their top business challenge, having enough inventory to meet demand fell the most of any option from 2021 to 2022.
3 Tips for Navigating Supply Chain Issues
Though the pandemic-era scramble for inventory is in the rearview, a variety of economic and geopolitical factors could create a few bumps in the road ahead. Try these techniques to smooth them out.
1Communication Is Key
One of the most crucial tactics for avoiding issues is simply talking to your supplier – and sharing as much information as you have about an order upfront. “Don’t go through several concept revisions and sample edits and then spring an in-hands date on them as you’re finally moving into production,” says Rhyen Campbell, communications and engagement strategist for Top 40 supplier Cap America (asi/43792). Of course, she acknowledges, it’s a two-way street: “You should be partnering with suppliers who also have great communication – suppliers who tell you up front their production times or if something is low on inventory.” In addition, distributors should set expectations with their own clients, letting them know that “nothing is truly guaranteed until it is in their hands,” says Rich Corvalan, who spent many years on the supplier side of the business before launching his distributorship Paradise Promotional Products (asi/526754) at the end of 2022.
2Stick With Best Sellers When You Can
“We carry deep inventory in our most popular sellers in the most popular colors,” says Mike McMillan, vice president of sales at RiteLine (asi/82498). “But inventory is typically predicated on historical use, so we’re not going to carry a ton of, for example, lime-green gel pens that write in lime green ink simply because they’re not fast movers, and we have little to no historical precedence on which to base inventory.” That doesn’t mean you can’t go for something custom or less common, but if you do, be aware of the time it could add to an order. For pens, McMillan says, 90 days will generally cover overseas shipping, but “money talks,” and paying for air shipment could cut timelines down to two or three weeks.
3Make Backup Plans
Even in the best of times, shipping issues and other sourcing snags could crop up unexpectedly. Rather than giving up, build fail-safes and backups into your planning. “There are so many choices in our marketplace,” Corvalan says. “Make sure you have alternatives to your alternatives.”