The decision was one of several actions Levi Strauss took to mitigate supply chain disruptions in Q2, according to CEO Chip Bergh.
What happened
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Why it matters
It is not the first time Levi's has talked about shifting cargo volumes due to supply chain disruptions. The brand reduced its manufacturing operations in China from 16% in 2017 to less than 2% in 2019 in an attempt to shield its supply chain from trade wars.
A few months ago Levi's faced a different problem: inventory shortages were leading to lost sales.
A surge in demand was the leading cause of these shortages, but supply chain issues did not help. A global container shortage was already challenging the movement of goods in the first half of 2021, when an import boom caused congestion in the ports of Los Angeles and Long Beach. At the same time, spikes in cases of COVID-19 disrupted both production and distribution worldwide, leading, for example, to congestion in Yantian, China.
This news brief is based on reporting published by Supply Chain Dive on 2021-07-12. The original report is linked below.
Supply Chain Dive
https://www.supplychaindive.com/news/Levis-diverts-airfreight-port-congestion-Long-Beach/603147/This independent news brief is based on the public source identified above. It is an original summary or translation, not a reproduction of the source article. Rights in source text, research, trademarks and images remain with their respective owners; images are used under the licence or permission identified in the credit. Rights holders may contact rights@goodproductasia.com with evidence of ownership. Verified concerns will be corrected, replaced or removed promptly. This report is not investment, legal, medical or purchasing advice.
