How a 7 month Journey of Single Sweater Explains Global Supply Chain Crisis.
A behind the scenes NBC News Story of what the clothing industry is up against amid the supply chain crisis. With multiple stops around the world, it could take a single sweater seven months to make it to a store shelf.
Old Cashmere Sweaters are turned into New Sweaters and Shipped at additional Cost due to Shipping Chaos in the US and the Global Supply Chain Crisis.
Based on this NBC News Story, Prado Italy takes old sweaters from around the world, that are shipped to Italy for weeks. Old Cashmere Sweaters and Wool Waster are Collected in a Cashmere Mill, pulled apart, shredded and then spun into a high quality top graded Yarn.
That Yarn is shipped to Hong Kong and from there sent to Dongguan, China where they turn it into new sweaters in few months. From Hong Kong, the sweaters are ready to be shipped to New York but they end up in a a Long Waiting Queue of Cargo Ships due to Shipping Chaos and Broken Supply Chains in the United States.
Due to Shipping Chaos & Supply Chain Crisis, The Price of Freight started hitting through the roof. What would cost 1200 USD, now started costing 20K USD. On knowing that Sweater Delivery was Delayed by more than 2 months, Flexport (that handles Shipping for Everlane) decided to use Cargo Planes to get the Sweaters shipped back to the US.
This ended up raising the prices of the Sweater by creating additional Markup Costs on the Sweaters. For Example, for every 5 Dollar Expense incurred on each Sweater, Flexport put an additional 10 Dollar tag on the Sweater to earn their end of the margin. Finally the Sweaters made it back to the Distribution Centres in the US.
From there the Sweaters were loaded into the Trucks and finally arrived onto the Store Shelves. With multiple stops around the world, it finally takes a single sweater seven months to make it to a store shelf.
Learn More Below on Supply Chain Stories:
The Ultimate Story on the Disruption of the Global Supply Chains
The Bubble Tea Ingredient Shortage Explaining the Global Supply Chain Crisis
View, Read and Learn more here:
- Ecommerce
- Technology
- Supply Chain
- Artificial Intelligence
- Marketing Mix
- Business Learning Videos & Case Studies
- Retail Failure Stories
- Startup Failure Stories
- Travel Food Culture
- Retail Articles
- Customer Articles
