SUPPLY CHAIN CHALLENGES
Coffee is among the goods arriving to the United States through the East Coast ports, with shipments already disrupted and prices rising.
Folgers coffee maker JM Smuckersaid it had strategies in place to address potential supply chain challenges such as confirming the amount of inventory it already has that is available to ship to retailers, adjusting production plans to maximize manufacturing finished goods and evaluating re-routing shipments to the West Coast.
“If the strike lingers, it will be difficult for retailers to form a plan B without fear of being stuck with excess inventory once the strike ends,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
“Depending on how long the strike lasts, many retailers and auto lots may reduce holiday sales events because they won’t have enough goods available,” he added.
Toy makers Mattel and Hasbro have limited exposure as they get most of their supplies from China via the West Coast ports, especially Los Angeles, said Linda Bolton Weiser of DA Davidson.
Walmart, the world’s largest retailer by sales, has said it was prepared for unforeseen disruptions in its supply chain and has maintained additional sources of supply to ensure it has key products available.
