Shipping Lead Times – The Light at the End of the Tunnel

With shipping lead times of eight to nine months as recently as this spring, supply chain issues put unprecedented pressure on manufacturers of luxury furnishings. And, since bad news rolls downhill, these delays placed even higher pressure on interior designers and higher-end furniture retailers.

“The delays have been so bad for so long,” as explained in an article at the Business of Home website, “that designers have gotten used to a new way of working: Order the big pieces first, assume a yearlong wait for [them] and fill in the rest as you go. Oh, and definitely double-check your shipping costs.”

Lead Times Trending Downward for Many

So, is there good news, you may ask. Based on an “informal survey” by BoH, manufacturers are beginning to catch up on their back orders while retailers are quoting shorter lead times to their customers. Rather than months, lead times are being quoted in weeks. In fact, some of these dealers and manufacturers are quoting as few as three to five weeks for delivery, though most are in the 10 to 12 week range.

While we may not have fully recovered quite yet (some plants in China have closed due to excessive heat), “at the very least, no one’s turnaround times are getting longer, suggesting that the worst is over and the crisis has bottomed out.”

Further, demand has moderated since early this year, relieving the pressure on foam manufacturers and those with labor shortages. Lower demand in some categories has allowed suppliers to catch up on orders and improve their production and distribution.

Ironic, much?

Psychology Matters

While it may seem counter intuitive, after a couple of years consumers seem to have adapted (and even accepted) extended delivery times. This change in mindset from instant gratification to lowered expectations means that “Long lead times are not a deal breaker anymore.”

In other words, the definition of “reasonable” has been altered by the unprecedented circumstance of the past few years. This enables dealers and designers to return relying on the adage, “Under promise and over deliver”.

Granted, we’re not quite out of the woods yet but, for the first time in a couple of years (at least), the trend in definitely positive.

We’re also happy to let you know that a number of our suppliers have been conforming to this trend with shipping lead times improving for them, as well. If you’d  like to know more, Contact TD Fall today.