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W W W. M A I N E B I Z . B I Z 21 N OV E M B E R 1 , 2 0 2 1 F O C U S L O G I S T I C S / T R A N S P O R TAT I O N T ransportation and logistics issues used to be solely be the concern of manufacturers, shippers, carriers and retailers. Now consumers have an increased awareness of how supply chain disruptions can impact their everyday lives. e pandemic accelerated a broader understanding and appreciation of the connectivity of our world, for better and for worse. We all knew weather, labor strikes and pricing fluctuations affected trade, but now it was something entirely different. ings that used to just show up when and where we wanted them to now weren't as easily available. Consumer demand shifted dra- matically from purchasing services to buying products. Trillions of dollars' worth of inventory was depleted at the same time that global production was slowed or shut down. A good example is the well-publi- cized effect this had on the automotive industry. It's not just the lack of semi- conductor chips, but parts and com- ponents across the entire build process. Prices have increased while availability has decreased, resulting in sparsely stocked dealer sales lots. Online e-commerce became the buy- ers' platform of choice as in-person store foot traffic slowed. at quickly tapped existing resources and led to panic buy- ing of certain commodities, most infa- mously of course, toilet paper. Shortages led to frustration and more critically for many, food insecurity. e federal government responded with stimulus payments to businesses and individuals to keep the economy afloat. Exacerbating the difficulties faced by employers looking for help to move products was the availability of unemployment benefits. ose extra payments, while well intended, kept many out of the workforce for an extended period. Even though those benefits recently ended, a good many of the continuing woes across the sup- ply chain are still labor related. With production slowly coming back online, ongoing labor shortages have resulted in a lack of port capacity. ere are fewer dockworkers to unload freight, fewer truck drivers to move it and fewer distribution and warehouse workers to pick and pack it. ere are also fewer delivery drivers to take it the final mile, to the consumer's home or business. What's ahead ere are bottlenecks everywhere and it's unlikely the supply chain issues will end soon. Jerome Powell, chairman of the Federal Reserve, recently lamented that, "It's frustrating to see the supply chain problems not getting better. In fact [they are] apparently getting worse." Supply chain issues in Maine mir- rored much of the U.S. market. People stayed home more, invested in improve- ment projects, personal recreation, boats, bikes and takeout meals. How we worked, learned, interacted and supported each other all changed. We also shopped more online, and like the rest of the country, experienced shortages and price increases in prod- ucts across the board. Retailers are now stocking shelves for the holiday shopping season. e last quarter of the year is known as peak season in the logistics and supply chain world. Peak season occurs when demand quickly outstrips inventory, so additional stock and transportation is needed to satisfy consumer need and prevent a backlog. It's already apparent that ship- pers don't have the inventory in place to handle peak season this year, so it's likely many products will sell out early again because of all the delays. e good news is there's an enor- mous incentive to make supply chains work smoothly again, establishing new levels of consistency and predictabil- ity. Trends like artificial intelligence, increased automation, cloud-based software, constantly improving visibil- ity and the development of a circular supply chain with less waste and more efficient use of finite raw materials, will all contribute to eventually solving these issues. In the meantime, my advice is to be patient, plan ahead and shop early. Dre w Graham is president o f S o u t h P o r t l a n d - b a s e d S h i p R i g h t , w h i c h h a n d l e s order fulf illment, contact center services and f inal mile delivery. Consumers getting a window into 'logistics' challenges B Y D R E W G R A H A M B Y D R E W G R A H A M C O M M E N TA RY Promote your business event online for FREE! Did you know Mainebiz has a business calendar online at mainebiz.biz/calendar? Promote your business event online by registering for free at Mainebiz.biz and completing the form at mainebiz.biz/business- calendar/post-an-event. Events will be edited as needed by Mainebiz staff, and then posted online. SUCCESSFUL PROJECTS START FROM THE GROUND UP ME 207-286-8008 • NH 603-427-0244 • MA 508-623-0101 WWW.RWGILLESPIE.COM CONSTRUCTION MATERIALS TESTING AND INSPECTIONS Soils, asphalt, concrete, masonry, fireproofing, and steel: Reduce potential delays, defects, unexpected costs, and repeated maintenance. ENVIRONMENTAL CONSULTING Groundwater, landfills and tank removal monitoring GEOTECHNICAL ENGINEERING AND EXPLORATIONS You see what's on top, we'll show you what's below. There are bottlenecks everywhere and it's unlikely the supply chain issues will end soon.