South Africans will be able to tuck into their favourite treats this festive season despite a global logistics crisis linked to the Covid-19 pandemic that has left shelves empty in shops across the world.
Martin Bailey, the chair of Industrial Logistic Systems, said SA's experience in dealing with constricted ports and trucking industry disruptions are helping it to weather the worldwide supply chain disruptions.
“We don't have the level of shortage of drivers that, say, the UK and US are experiencing,” he said. “It is doubtful we will see lots of empty shelves over Christmas.
“Our demand cycle has not gone crazy because our government simply has not got the money to overstimulate our economy and we are far more used to catering for ‘strange’ events.”
Matlou Setati, food safety executive at the Consumer Goods Council of SA, said a mismatch between supply and demand is at the root of the global crisis.
“Supply chains were disrupted by lockdown restrictions and as economies are gradually opening up, and demand for goods increases, there is obvious pressure on already disrupted supply chains,” he said.
“The pandemic revealed the need for agile supply chains that can respond to unexpected shocks in the system such as the impact of the pandemic. We believe efforts are being made globally to normalise the situation ahead of the expected increased demand during the normally busy festive shopping season.
“Local retailers have, however, been preparing for the Black Friday shopping period as well as for the festive season. While we can’t speculate on what the future holds, we are confident that we will not experience challenges in the supply chain.”
Vikash Singh, Clicks’s managing executive, said the retailer is well prepared for the festive season because more than 90% of its products come from local manufacturers, suppliers and agents.
“Consequently, global supply chain challenges have less of an impact on the group. Some of our manufacturing partners have experienced some local and global delays in getting stock, but the Clicks Group has enough stock for Christmas.”
Woolworths said it had planned ahead to ensure the logistics crisis does not disrupt its operations. “We have been fortunate as a retailer as most of our Christmas product has already arrived in time for the Christmas period,” the company said in a statement.
“This has been due to proactive planning and working closely with our partners to manage some of the disruptions in our supply chain.”
Spar said 95% of its goods are procured locally. “We do not expect to suffer a significant impact from global supply chain shortages this festive season.”
Shoprite and Checkers said they have 45% more toys in stock this festive season.
“The group’s supermarkets will be fully stocked as it ordered well in advance, avoiding the current situation where skyrocketing container prices are affecting toy prices and availability,” the group said.
Pick n Pay referred the Sunday Times to the Consumer Goods Council of SA.
The latest household affordability index by the Pietermaritzburg Economic Justice & Dignity group shows that even if Christmas food is available, it will cost a lot more.
The year-on-year increase in the cost of the group's household food basket is 6.3%, while Stats SA’s consumer price index for October pegs headline inflation at 5%.
The UN Food and Agriculture Organisation said world food prices rose for a fourth straight month in November to remain at 10-year highs, led by strong demand for wheat and dairy products.
WHAT'S THE HOLDUP?
- Marmite: Production has been constrained because of a shortage of wet yeast, a byproduct of brewing
- Nikes: In September, the sportswear company said its clothing and shoes may be hard to find because of supply chain backlogs
- Books, computer chips and soft drinks: Labour shortages and shipping delays are among the factors causing shortages
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