INDUSTRY PROFILE
Keeping the coffee industry covered Star Outdoor’s Mark Star explains the impact of supply chain issues on his business and how customers can maximise their brand presence during the growing outdoor dining movement.
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ustomers who have attempted to buy consumer products in the past two years are likely familiar with the severe supply chains delays that have disrupted shipping times and postal deliveries from everything including clothing items and cosmetics to kid’s toys and furniture. While COVID-19 has created and exposed broken links in the global supply chain, Star Outdoor Managing Director Mark Star is navigating those hurdles and finding ways to alleviate production delays in the outdoor branding industry. “Before the pandemic, there was a lean towards ‘just-in-time stock’ for outdoor branded products such as café umbrellas, wind barriers, and a-frames, as there was no need to preserve storage,” says Mark. “The pandemic has changed this outlook. Now that supply is unreliable, it has taken away the advantage of ordering as you require product. Instead, if you leave ordering too late, businesses won’t Star Outdoor have been assisting clients to active their brands for more than 15 years.
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get the products they require until months down the line.” Multiple national lockdowns have continued to slow or even temporarily stop the flow of raw materials and finished goods, disrupting manufacturing as a result. “As countries around the world imposed COVID travel restrictions, this caused a lack of access and long wait times for shipments at major ports around the globe,” says Mark. “And these same COVID restrictions in ports have meant fewer workers being able to handle shipments.” The result is a backlog of shipments and supplies waiting to be delivered to distribution hubs, congestion of shipping containers in destination ports, and a lack of containers in origin ports, further limiting the capacity of shipping companies. For Star Outdoor, this meant a lack of supply and rising shipment costs. “One of the more convoluted issues we’re facing at the moment is that the
fabric we use for our outdoor umbrellas is made overseas in Spain,” Mark says. “That fabric then gets shipped to China and is made into canopies for the umbrellas.” “But as we know, Europe has had its own issues with COVID, so production at the factory for the fabric has been severely reduced and delayed.” Australia was not the only country that responded to indoor hospitality density restrictions with extended trading outdoors, resulting in high demand for shade in alfresco dining across the globe. “The demand for acrylic fabrics has skyrocketed, and the supply from factories has gone down, which makes [supplying customers with product] quite difficult. In previous years, our factory in China would already have the stock we need,” he says. Mark says before the pandemic, freights costs for a 40-foot container from China to Brisbane were about $1500. Twelve months later, that same container costs $10,000. “Steel and aluminium prices have also risen drastically, which has really affected production pricing,” he says. Mark adds that as prices go up and wait times get longer, everyone is feeling the effects of the post-COVID supply chain struggle. “It saddens me to hear the disappointment on the other end of the phone when customers realise how long production will take, as it’s something we can’t change,” he says. “The challenge for companies will be to make their supply chains more resilient without weakening their competitiveness. “I believe the key to a successful supply chain is making promises you can deliver on, and that’s something our company stands by.” Thanks to the rising popularity of outdoor dining as consumer confidence
