sup·ply chain

/səˈplī CHān/

noun

the sequence of processes involved in the production and distribution of a commodity.

Picture yourself at a Broadway musical. You’re sitting in a comfortable seat, in a charming theatre, waiting for the show to begin. You’re there to watch the latest hit performance and you’re so excited. The curtain opens, the show begins, and for the next two hours, you sit enthralled with the acting, music, lights, and storyline. At the end, you applaud, or perhaps even give a standing ovation. It was a riveting performance, and you leave feeling inspired, personally fulfilled, and so happy you went. You’ll remember this experience for years to come.

Everything you watched was the result of the behind the scenes. The daily practices for months on end, perfect music selections and transitions, the right cast, costume designs, and impeccable lighting. Months of hard work and decisions goes into each and every night. While the team has it down to a science, things can still go wrong. A cast member might get sick, a bulb may burn out, or a music transition may not happen perfectly, I’m sure there are a plethora of details that may not go as planned. Still this professional team leaves every night, skilled, satisfied and confident they did their best. The audience is often none-the wiser of any hiccups, even a slight blip remains seamless. Ultimately, the cast and team is there to provide an experience, not show how it came to be.

People want to be moved. They want the process to feel good, and they don’t necessarily want to see the guts, and messy business behind the scenes, as that affects the outcome. It jades their view of the process, and what the final result is meant to be.

Our business, as interior designers, is about making spaces, and homes beautiful. BUT, the process of getting there consists of an incredible amount of work, and reliance on industry partners. The benefit when you hire an interior designer, is you don’t have to think about, or worry about the minutia. Really good designers make this process look, and feel easy, which is why we’re designers. We take on the liability, and the detail of the behind the scenes, alongside our trusted brand partners. This alliance is critical in maintaining sanity these days.

These days, with the supply chain issues as they are, the behind the scenes is more critical than ever. It’s also harder than ever before. We’re in uncharted waters, trying to navigate the boat as best we can, and sometimes we don’t even know where the boat is.

Curveballs, dodgeballs, disappointments and uncertainties, we’re only as good as the information we’ve been given, and that information is not always accurate. It’s a trickle down effect of detail with SO many people involved in the supply chain.

So, let’s get down to brass tacks.

“The Sequence of Processes” doesn’t exist as it did. The sequence has changed, the process has changed, and everything must be embraced for what it now is. But that could also change tomorrow.

“The Production and Distribution of a Commodity” is slow. From manufacturing to materials to shipping, it’s all moving at the speed of molasses.

Word on the street is the supply chain issues could continue well into 2022. The industry has changed so much over the last year, and we’re still going with the flow, managing as best we can based on the circumstances, which seem to be changing almost on the daily. Much like a Broadway musical, the behind the scenes is critical in things running smoothly. There are many people, companies, suppliers, truck drivers etc. to facilitate the ordering process. It’s more important than ever in the industry’s current state, to be on top of the back end efforts, through constant communication, tracking, pivoting and managing unforeseen circumstances. That being said, we’re all human, so information, and eduction is key in steering expectations through the process.

We spoke with some of our most trusted suppliers, about what’s happening behind the scenes to help shed light on the reasons orders are taking as long as they are, and why prices are going up.

LIGHTING

WHAT ARE THE MAIN REASONS YOU'RE SEEING DELAYS:

We are seeing delays on goods due to the supply chain issues that almost every industry is experiencing. There are shortages in raw materials and skilled labour, which have led to ongoing production delays in many factories. Couple that with the increased demand on anything 'home' related and it has created some very real challenges. We, at ROBINSON Lighting and Bath, are fortunate in that we have a branch network that extends from Ontario to BC. This allows us to sometimes transfer stock from other branches and also makes for increased buying power when placing orders with our respective suppliers. We have teams that are proactive in procuring stock in advance of anticipated demand which helps in many cases.

WHAT ARE ETA'S LOOKING LIKE RIGHT NOW:

ETA's vary greatly for goods needing to be ordered. Lead times are also frequently changing...Remember, the "E" in ETA stands for 'Estimated'! We are often able to obtain a real-time inventory status on fixtures by way of supplier portals and/or supplier/rep support. Due to the increased demands for goods and the ever-changing nature of ETAs, plenty of extra time is spent monitoring ETAs and updating our clients.

WHAT IS THE REASON FOR PRICE INCREASES ON PRODUCTS/SERVICES:

While it’s not uncommon for suppliers to apply price increases at this time of year, we are seeing additional increases due to the cost of raw materials having gone up. The difficulty in finding skilled labour has also added to the increases we are seeing. And then there is the significant increase overall in transportation costs being applied to goods. There is a container shortage to begin with, which equates to container surcharges being applied. In some cases, these surcharges are almost equal to the cost of goods being transported.

HOW HAS THE ORDERING PROCESS/INDUSTRY CHANGED FOR YOU SINCE COVID:

We spend a great deal more time in advance of order confirmation determining the availability of fixtures needing to be ordered in from our suppliers. Being proactive in this way means we also spend a lot more time suggesting alternatives and then determining their availability prior to an order being processed. Should there be a change in the initial ETA, that too leads to additional time spent sourcing and suggesting alternative fixtures and in making revisions to the order. Additionally, as we've seen lead times increasing in the industry, we have proactively invested in increasing our inventory levels on many of our top selling products.

WHAT IS THE BEST ADVICE YOU'D OFFER DURING THIS TIME:

Plan ahead, be decisive, and try to confirm your selections as soon as possible. Allowing for lead time and understanding that ETAs and selections may shift is the best advice we can offer. If a feature fixture is important to the overall aesthetic, it is often worth the wait! The entire supply chain (Factories, Suppliers, Designers, Contractors/Builders) is all pulling together to get You, our mutual client, the fixtures that help bring your home to life!

QUARTZ

What are the main reasons you're seeing delays?

Simply put, supply and demand. Over the past year demand has increased exponentially, and supply has been struggling to keep up with the demand. This, compounded with the ongoing chaos of global shipping, has resulted in delays outside of our control.

What are ETA's looking like right now?

We are constantly receiving stock, so ETA’s can vary. Luckily, we have 2 major production facilities: One in Israel and the other in the States. We receive shipments from both.

What is the reason for price increases on products/services?

Price increases are standard, and an unavoidable part of the industry. Factors include production timelines, lack of resources, and supply & demand. Not to mention Covid has played a major role impacting all the above.

How has the ordering process/industry changed for you since COVID?

We do not aim at applying pressure, however to mitigate any unwanted delays, ordering material should be done ahead of time. In the past fabricators could order stock within a few days' notice, now we recommend at least 4- 6 weeks notice for new shipments to arrive.

What is the best advice you'd offer during this time?

Plan ahead, be prepared, have all your orders placed as decisions are being made.

PLUMBING

What are the main reasons you're seeing delays?

There are many shortages in the market right now from shipping containers to raw materials and even packaging. Also overwhelmed freight companies and increased demand are putting strain on the supply chain

What are ETA's looking like right now?

It depends on the product, bathtubs are about 3 months ETA depending on make/model

What is the reason for price increases on products/services?

It's an increased demand mixed with a supply shortage and sprinkled with increased fuel prices and shipping rates.

How has the ordering process/industry changed for you since COVID?

It has become very difficult as checking ETA's. It seems like all we do, and the ETA's we are receiving are more often than not, inaccurate

What is the best advice you'd offer during this time?

If you're building new, don't be afraid to order your fixtures 6-8 months ahead, you'll buy cheaper and avoid issues with order times. If you're doing a renovation, consider getting materials on order at least 3 months prior to starting the demo for the same reasons.

FURNITURE

What are the main reasons you're seeing delays?

So many reasons! The factories are at reduced staff to prevent any breakouts which would lead to full shutdowns, delays with raw materials to even produce the product, outrageous lead times for parts and pieces out of Asia holding up the ability to complete pieces, a shortage in containers to get the items here from overseas for the cool trendy pieces that north American suppliers aren't able to produce, a shortage of truck drivers and trucks to transport completed pieces from the factory to the end user and of course all of North America spending more time at home and improving the interiors has caused a surge in orders at the vendors putting more pressure on the whole system.

What are ETA's looking like right now?

Our North American custom made suppliers are on average about 20-22 weeks and some (seems like more and more vendors everyday) are getting up into the 30-35 week range. Imported furniture is 12 months from the date the vendor orders the items until they receive them so even though they have quadrupled their typical ordering amounts once a piece is out of stock it can be well into 2022 for that to return. Outdoor furniture won't be back to typical stock levels until the 2023 season.

What is the reason for price increases on products/services?

Pick your poison here. The cost of lumber, foam, a 700% and climbing increase in shipping a container from overseas. Fuel costs for transportation as well as a huge imbalance of the supply and demand of all the materials and labor to produce the pieces is driving up the costs at every point.

How has the ordering process/industry changed for you since COVID?

We have had to increase our staff to just assist with order management to keep clients updated on everchanging arrival dates, we had to increase our warehouse size to help hold orders that typically turn around in 4 months but now the coffee table may arrive in 6 weeks but the sofas and chairs etc aren't in for another 6 months and that's on every order so the amount of items we are currently holding waiting to fulfill the complete order has increased dramatically.

What is the best advice you'd offer during this time?

Since the lead times are much longer than usual, use that to choose what you want and make it perfect instead of settling for a quick and easy solution. With those options off the table you can really take the time to be selective and get exactly what you want. Secondly don't assume the pricing will come down anytime soon, and to hold off ordering until that happens. Prices will be constantly rising continually well into the second quarter of 2023 so thinking that waiting will save you money it will be quite the opposite. Lastly, hire a professional to help you make the best decision for your home, your wallet and your family. It will not only save you time, money and stress they are trained and educated on these areas and know what to look for and what to stay away from making sure where you invest your money is spent in the best way possible to get the not only aesthetic part solved but also get you the most durability, purpose and quality that suits your needs.

WINDOWS

What are the main reasons you're seeing delays?

When home improvement projects across North America rose dramatically during lockdown, suppliers working under lockdown restrictions could not meet the rise in demand. Raw material and labour shortages, cross-border transportation issues and back-to-back weather events in the gulf coast added to an already challenging situation.

What are ETA's looking like right now?

We are starting to see incremental improvements in timelines. Our team makes every effort to maintain scheduled deliveries, while contending with disruptions caused by the supply chain. We work closely with each of our suppliers to strengthen our position, expediting essential raw materials to the best of our ability.

What is the reason for price increases on products/services?

Like other industries, we are experiencing a surge in almost all raw material prices, such as wood, PVC, glass, metal products, hardware, and fibreglass. Logistics and carbon tax increases have added to an already unfavourable situation. Some alternative materials are available to reduce lead times and cost, however compromising our quality by using substandard materials is not an option for us.

How has the ordering process/industry changed for you since COVID?

COVID-19 exposed the necessity for better technology systems that support and facilitate virtual shopping and mobile work.

What is the best advice you'd offer during this time?

As a local, family-owned business with a 52-year history, we are deeply connected to our community and understand wholeheartedly how frustrating delays can be. We highly recommend planning ahead and anticipate delays, so they can be proactively mitigated. It’s important that consumers investigate products and services by speaking with industry professionals, such as designers and architects, for their professional experience and trade recommendations.

We’re all working together behind the scenes to navigate the uncharted waters we find ourselves in as best we can. The ebb and flow of orders is enough to make your head spin. One day something is backordered for 12 weeks, then it turns into 24. On the other hand, an order confirmation could read “not available”, then three days later it arrives on your doorstep (true story!). It’s hard to make heads or tails of it all somedays, but we’re still smiling. To put things into perspective, here’s a recent image of ships in transit (via @tkpleslie on instagram). While not all are cargo ships or freight liners, most are. Talk about a traffic jam!

So let’s recap with THREE important takeaways:

Plan ahead.
Wait for the right product, and don’t compromise.
Hire a professional.

I trust this will be helpful in planning for your next, or current!, project. If you have further questions about our interior design process and project timelines, don’t hesitate to connect via our contact page.