Rangehood specialist, Schweigen Home Appliances has revealed the five key areas that have impacted the logistics of the local appliance industry.
These areas have included sourcing containers for the shipping of products, higher raw material costs, changes to factory and manufacturing schedules, fumigation of containers as well as border closures.
Schweigen Home Appliances co-owner, Anthony Fletcher told Appliance Retailer that due to the impact of these factors, prices were increased across his range of appliances on 1 July this year.
“While some other companies had a price rise last year, we didn’t as we absorbed the increases after the impact of Covid in 2020. On 1 July, we introduced increases of between five and eight per cent and this was due to a number of factors. The number one increase has been containers which are up to 70 per cent more expensive than pre-Covid levels, but there have also been higher raw material costs.
“European factories have also been impacted by Covid as they had fewer staff working few hours which of course leads to fewer orders and they can’t ship as much stock. We have been fortunate as we have been able to manage our stock levels and we have been able to provide continuity to local retailers.”
Fletcher also confirmed that fumigation is another issue that has impacted the delivery of products following the Khapra Beetle outbreak within the Electrolux products last year.
“Fumigation used to be random, and virtually all containers now require treatment on arrival. We would previously have access to our containers quite quickly off the wharf, but fumigation has definitely created longer lead times when accessing stock after arrival.
“Border closures are also adding time and cost to deliveries – with some truck drivers having to wait up to eight hours to cross the Queensland border from New South Wales.”