Retail leaders remain confident that businesses can manage the supply chain disruption in the coming months.
Photo: Unsplash/Aaron Yigin
A recent study predicts that several factors could affect the stability of New Zealand’s supply chain in the upcoming northern hemisphere winter, when New Zealand’s export season peaks.
Massey University’s Supply Chain Risk Analytics Network said war and winter energy demands in Ukraine could result in continued cost increases and disruption.
Additionally, the lockdown enforced by China’s zero-Covid-19 policy has caused construction delays and port overcrowding. With winter approaching, it is likely that similar lockdowns could become more frequent and widespread, creating significant uncertainties for supply chains here, Macy’s said in a statement.
But Greg Harford, chief executive of Retail New Zealand, said retailers are better prepared than they have been for the last two years to ensure they have enough stock.
“Companies are working really hard to ensure they have more inventory on hand and are looking at alternative ways to fill their supply chain.
“I am confident that people are doing everything possible to avoid a repeat of the situation they have seen with COVID.”
Harford said the region has learned to be more adaptable during COVID-19.
Though he acknowledged global factors could still have an impact, Harford didn’t anticipate many major issues coming into Christmas.
dr Karel Bezuidenhout, a lecturer in supply chain management at Massey University, said supply chains are typically stretched due to sluggish shipping, tight finances and overworked employees.
“This means that small disturbances can still cause big disturbances,” said Bezuinhout.
“Unfortunately for us, these additional challenges will likely come our way in our summer and autumn during New Zealand’s peak export season.”
Bezuinhust said business owners who depend on supply chains should be prepared for disruptions by assessing risks and predicting which partners could be affected.