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Supply-Chain Shortages Continue, But For Some the Problem Is Too Much Stock

Manufacturers will have to combine just-in-time with just-in-case

Sarah Schiffling
Nikolaos Valantasis Kanellos
Mon, 01/24/2022 - 12:02
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Everything was about shortages last year. COVID-19 vaccine shortages at the start of the year were replaced by fears that we would struggle to buy turkeys, toys, or electronic gizmos to put under the Christmas tree. For most of the year, supermarket shelves, car showrooms, and even petrol stations were emptier than usual. Some shortages were resolved quickly; others linger. So are we facing another year of shortages, or will the supply-chain crisis abate in 2022?

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It’s worth reflecting that shortages have happened for many reasons. During the early 2020 lockdowns, a sudden run on essentials such as toilet paper and pasta left shelves around the world bare. Singapore ran out of eggs as consumers hoarded them, for example. Retailers ordered more eggs, desperate to satisfy demand. But once the demand had been satisfied, there was suddenly an oversupply. In June of that year, distributors threw away 250,000 eggs.

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