6 tips for reporting supply chain disruptions and holiday shopping

2021-11-13 06:58:45 By : Ms. Eva Wong

Three supply chain management researchers provided valuable suggestions on how reporters can add context to their reports this holiday shopping season.

Black Friday, Cyber ​​Monday and year-end holidays are coming soon. Considering the upcoming shopping season, we hope to provide guidance to reporters who are responsible for reporting on how local consumers and businesses handle gift sales in the event of a global supply chain disruption caused by the COVID-19 pandemic.

We contacted three academic researchers with experience in supply chain research to find out their views on issues and perspectives that journalists should explore:

"It is important to understand what supply chain management is," Peinkofer said. "This is the process where the product goes from raw materials to the manufacturing plant where the product is produced, and then distributed through wholesalers and retailers, until it reaches the final customer."

The global supply chain has experienced disruptions in the past, but in early 2020, COVID-19 quickly shut down international production centers completely. The news media recently used images of giant container ships trapped outside the ports of Los Angeles and Long Beach to help tell stories of ongoing supply chain disruptions.

These images are powerful, but as cargo jams seem to be loosening, they may be reduced. Not all experts believe that supply chain disruption is as serious as described.

"I'm waiting to be moved by stories like this," Atkinson said. "I don't agree to make people angry about things that may be nothing. I have been able to shop for my children without any problems. I want to know what it is—what products should I worry about."

Read on to learn more about how to add context and nuance insights to the report, as global supply chain issues persist and consumer demand increases around the holidays.

The pandemic has exacerbated the complexity of an already complex global supply chain system. Each retailer will have a different story on how to deal with supply chain challenges. But the important reasons behind these challenges are not mysterious.

Sarkis said: "Once a pandemic hits, everything stops." "If you turn things off, you can't get things."

The global supply chain is called a chain for a reason. Cut off one of the chain links and the chain will collapse. Melbourne, Australia is home to the country's largest cargo port. Since March 2020, it has been closed for a total of nine months during six blockades. Australia is a major metal producer and the world's largest producer of lithium. Lithium is required for batteries in laptops, cell phones, and electric vehicles.

However, in addition to the major shutdowns caused by the pandemic, the reasons behind ongoing supply chain problems have become as complex as the global logistics system itself.

"In essence, we are still in the midst of a pandemic, and work is shutting down all over the world," Sakis said. "There will be labor issues, this shortage or that kind of shortage, there will be regulatory issues. All of these have been discussed. There are multiple issues that are happening. As far as storytelling is concerned, in some ways, it's like night Story: When there is no single answer, they try to simplify things that may be a bit excessive."

Sarkis pointed out that there are many other reasons for the ongoing supply chain challenges. The trucking industry in the United States has difficulty retaining drivers. According to the latest data from the Bureau of Transportation Statistics, in terms of weight and value, trucks transport more goods across the country than all other modes of transportation combined.  

"Just losing some truck drivers here and there could shut down a major part of the supply chain," Sarkis said. "Little things can be as important as big things."

Then there is global vaccine fairness. Due to the lack of access to vaccines, some countries have been struggling to cope with the higher burden of COVID-19 infection and death. Although the vaccination rate in economically developed countries is relatively high, and six out of ten Americans are fully vaccinated, the vaccination rate in less developed countries with global shipping ports is much lower.

If there are only one or two specific products on the shelves of your local store, check the source of that product, whether in the United States or abroad. What happens at the point of production or the route the product must travel to reach the store?

First, ask the business owner how to ship the product to them, use the data source highlighted in Tip #5 to see if there are any delays in the country or region of origin, and contact a supply chain expert at the local university.

There are hundreds of academic supply chain management projects across the country, so reporters are likely to find professors who are familiar with local or regional supply chain issues and economics.

Peinkofer recommended experts from her own Michigan State University and Ohio State University; the University of Tennessee, Knoxville; Auburn University; and the University of Arkansas. The Journal of Operations Research is another place where you can find current research and scholars on supply chain management.

Sarkis said that it is important to clarify the specific areas of expertise of supply chain researchers, because their focus areas will affect their answers to your questions. Supply chain management includes many research fields-transportation and logistics, marketing and retail distribution, procurement and procurement, operations management, labor research, and economics, to name a few.

"If you were an outsourcing expert, would you consider outsourcing a problem?" Sarkis said. "If you are a sustainability expert, is sustainability a problem? If you are a financial expert, is it financial? And I bet each of them can find a difference in the way they study it To give you an answer."

Experts from trade groups dealing with supply chain challenges can provide professional third-party views. Some of these groups include the National Retail Foundation, the Supply Chain Management Association, the Committee of Supply Chain Management Professionals, the American Railroad Association, and the American Association of Port Authorities.

But remember that the main purpose of a trade group is to represent the interests of its members in the industry. In general, Atkinson warned that journalists should “be wary of agenda-driven sources. As with any public policy issue, it’s easy to find sources that can confirm what you want to believe.”

"Resilience is a seriously misunderstood concept," Atkinson said. "Resilience is the ability of a system to rebound after a shock. This may mean that it will return to normal or adapt to changing circumstances."

Peinkofer said, for example, small retailers who may not have much internet presence before the pandemic have enhanced their ability to complete orders online. Retailers, large and small, now provide customers with new ways to buy goods, such as roadside pickup.

Peinkofer said that although Wal-Mart, Target, and Amazon all say they are in a good position, boutiques or mom-and-pop stores will adopt very different and potentially interesting flexible strategies compared to large retailers. Here are some questions about local retailers for you to discuss:

"I think there are examples from actual retailers, which is what makes it interesting and brings the story to life," Peinkofer said.

Atkinson pointed out that despite the challenges facing the current supply chain, the supply chain will always be interrupted-for example, think about natural disasters. Nevertheless, companies tend to find a way to provide consumers with what they want.

"Businesses are very good at launching products to sell to us," he said. "If they want to make money, they will make money. This is great. I work in economic development and I like to see it." 

Not all stores in all regions have rows of empty shelves. But even if many goods are available locally, see what happens to prices.

Inflation growth has just reached its highest level in 30 years, and the consumer price index in October 2021 has risen by 6% from the previous year. Data collectors at the US Bureau of Labor Statistics record the prices of 80,000 goods and services every month to create a price index.

This means that consumer prices are now relatively higher than last year. Although the federal government has recorded an increase in inflation for many products, this does not necessarily mean that the price of each product will rise by 6%. For example, compared with last year, clothing increased by 4%. A large part of current inflation is related to rising energy costs, including rising natural gas and diesel prices.

Even if the store manages to maintain inventory on the shelves, ask if they have had to significantly increase prices since the last holiday shopping season. If they raise the price, why? Contact academic experts to learn more about whether price increases are related to higher overall container shipping costs and higher energy costs. The inflation data for each state and specific metropolitan area provided here can provide valuable background information for your local story about retail price fluctuations.

It is also worth exploring whether the types of goods produced and sold in large and small stores are decreasing. As the federal government introduced pandemic-related stimulus measures last year, consumer spending increased. Compared with the previous three months, from April to June 2020, overall consumer spending fell by nearly 10%. By the last three months of 2020, spending has almost returned to pre-pandemic levels. From July to September 2021, consumer spending was 7% higher than the same period in 2020.

Since the beginning of the pandemic, American consumers have been buying goods at a faster rate than services—which means more physical products need to be shipped around the world. In order to keep up with demand, some companies have slowed down channels for selling lower products.

Reporter Kayla Canne interviewed Sarkis in a report written for The Sun Chronicle in Attleboro, Massachusetts last summer about the shortage of meatball pasta. Sarkis speculates that Campbell Soup has increased the output of its best-selling products at the expense of variety. It takes time to stop the machine and recalibrate it for another product.

"It may take half a day to shut down some machines," Sarkis told reporters. Is the apparent lack of product diversity within your coverage area a persistent problem?

"Look at the data," Atkinson said. "Year after year, look at what happened in the past. Is this really scary? There are always challenges. How is this different?"

The following seven online resources can provide a broader understanding of the scope of transportation issues:

The framework of a news report is usually related to how the reporter asks questions to the source.

"Just because you can't get gifts that are hard to get, it doesn't mean you can't get good things from the local community and support small businesses," Atkinson said.

If retailers say that certain products will be unavailable or limited, reporters should consider whether the inability to buy toys or clothes represents a major tragedy. Although consumption may decrease, are community members looking for ways to enjoy the holidays?

"There is something to be said about remembering the holidays and the spirit of the holidays," Atkinson said. "It sounds tacky, but it's true. It's not just about consumerism and product availability and how we should solve supply chain issues. The holidays are about to happen. They will be great."

Even for reporters who don’t usually report on climate change, the Lancet Countdown Report is a treasure trove of story ideas and can help explain how extreme weather events affect personal health. 

Renowned science journalists Deborah Blum, Cristine Russell, and Brooke Borel provided advice to help newsrooms avoid common mistakes when writing headlines about health and medical research.

Law professor Dorit Reiss, whose research focuses on vaccine authorization and religious exemptions, provides advice on how journalists should think about and report on these issues during COVID-19.

This work is licensed under the Creative Commons Attribution-No Derivation 4.0 International License Agreement.

Written by Clark Merrefield, Journalist Resource November 12, 2021

This <a target="_blank" href="https://journalistsresource.org/economics/supply-chain-holiday-shopping/">article</a> first appeared on <a target="_blank" href="https ://journalistsresource.org">Journalist Resources</a> and republished here under a Creative Commons license. <img src="https://journalistsresource.org/wp-content/uploads/2020/11/cropped- jr-favicon-150x150.png" style="width:1em;height:1em;margin-left:10px; "><img id="republication-tracker-tool-source" src="https://journalistsresource.org /?republication-pixel=true&post=69282&ga=UA-5985794-2" style="width:1px;height: 1px;">

Harvard Kennedy School is committed to protecting your personal information. By filling out this form, you agree to receive communications from The Journalist's Resource and allow HKS to store your data. HKS will never sell your email address or other information to third parties. All communications will include the opportunity to unsubscribe.

As a project initiated by the Schoenstein Center at Harvard Kennedy School and the Carnegie Knights, journalist resources plan, summarize, and background high-quality research on journalistic public policy topics. We have received generous funding from the Carnegie Company of New York, the Robert Wood Johnson Foundation, the National Institute of Health Care Management (NIHCM) Foundation and individual contributors.

HomeAbout GiftsRSS Understanding Your ResearchEU/EEA Privacy Disclosure

Unless otherwise stated, this website and its content (except photos) are licensed under the Attribution-NoDerivatives 4.0 International (CC BY-ND 4.0) license. This means that you are free to republish our online and print content, and we encourage you to do so via the "Republish this article" button. We only ask you to follow some basic guidelines.