How Supply Chain Disruption Affects Columbia Sportswear's Business: NPR

2021-10-27 08:34:54 By : Mr. Lee Wang

NPR's Michel Martin spoke with Columbia Sportswear CEO Tim Boyle on how recent supply chain issues have challenged his company.

Blockades, mask requirements, capacity restrictions-in the past 18 months, companies large and small have had to adapt to a series of challenges. Now there is a new challenge, the supply chain is disrupted. We have heard about it everywhere. From food to computer chips to clothing, almost every industry is affected by the slow movement of goods. Therefore, we think we should visit a business leader to hear how he and his company respond. For this, we turned to Tim Boyle. He is the CEO of Columbia Sportswear Company. He is with us now.

Mr. Boyle, thank you very much for joining us again.

Tim Boyle: Well, thank you for inviting me to join you.

Martin: So have we heard so many interruptions affecting your business? Can you draw a picture for me?

BOYLE: Well, to be honest, this is really global. -You know, goods transported by ships in Asia are affected. The entire Asian factories are closed, and most of our goods are produced there, which is obviously influential. Then, when the COVID impacted it, freight from Asia to the west coast of the United States and around the world to Europe and other places suffered a double blow. Then-due to the nature of these consortia, which were established in the past few years to manage freight between companies, we have seen a huge and astonishing increase in container shipping prices.

Martin: How will your customers feel? Is there a delay in getting what people want? Are prices rising?

Boyle: Well, yes. This will be delays and price increases. So honestly, everything is a little bit.

Martin: Last week, President Biden announced that the ports of Los Angeles and Long Beach will be open 24/7 to resolve the backlog of cargo ships. Does this help you?

BOYLE: If we can solve the next bottleneck, it is the chassis, which moves the container from the port to different places. You know, in the past 30 years, American companies and successful companies around the world have been operating, you know, timely inventory-don't carry too much inventory, you can use it whenever you need it. Then, when you experience an outage, as we have experienced in the past 18 months, the situation will only get worse. So I guess some of them are predictable. But yes, I believe it will affect us for a long time.

Martin: We have heard a lot of warnings to buy in advance during the holidays. But if there is no inventory, how will people do this? What is going on-what are you preparing for?

Boyle: Yes. Well, so we have merchandise in the store, and we have merchandise in the retail customer store. Honestly, Americans are spoiled. So if you want a large jacket, there are 15 colors, you may choose any of them. You know, you may have to-instead of buying a large navy blue jacket, you may have to buy a large green jacket. There are goods around, but it will not satisfy American consumers as they are used to buying.

Martin: Is there anything in the whole situation that keeps you awake at night?

BOYLE: Well, in my opinion, inflationary pressures will be very serious in the next few years. And, as you know, our company, like most companies, hasn’t experienced inflation for many years-as far as the apparel business is concerned, it may be 20, 30, or 40 years. It is indeed a deflationary commodity. Now we are paying attention to inflation for the first time. Managing a business when prices are rising is different from managing a business when prices are falling.

Martin: That's Tim Boyle. He is the CEO of Columbia Sportswear Company. Mr. Boyle, thank you very much for talking to us again. keep in touch.

Boyle: Thank you. will do.

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