Retailers are facing the prospect of a shortage of the most wanted electrical consumer goods, such as games consoles and flat screen TVs, as we enter retail's busiest time of the year, warns BravoSolution.
In a period of ongoing economic uncertainty, companies are continuing to hold on to their cash reserves wherever possible. As such, many suppliers have begun to reduce inventory levels with fears that redundant stock risks significant losses if left unsold. As a result, lead times for electrical components have increased dramatically, hitting dangerously high levels that now stand at an alarming 52 days - five times higher than the previous 10- to 12-day standard. With very little time until Christmas, this is a huge concern for retailers, who now risk being left short of supply of some of the most popular electrical products.
According to BravoSolution's analysis, electrical components such as transistors have been affected most in this aggressive inventory dwindle, risking a serious shortage of the most desired consumer electronics, such as games consoles and televisions, and small appliances, such as microwaves and food processors.
To compound the problem, the paper market is also suffering as a result of increased lead times, which could result in a significant rise in packaging costs as stock levels run low. Not only could this cause a potential shortage of products such as greetings cards, wrapping paper and even decorations, but ultimately this could affect all areas of the supply chain.
Timely, incisive articles delivered directly to your inbox.