Big Lots Innovates Sourcing Strategies to Address Product Shortages
Big Lots, in response to product shortages caused by the closure of UFI, has adopted various procurement strategies. They have sourced from bankrupt competitors and retailers with excess inventory and were able to access Broyhill merchandise at a discount through arrangements with banks. To accommodate new Broyhill sets, Big Lots has implemented promotions and marketed "mitigation furniture" brought in after the closure, although it has faced challenges selling these pieces individually online. Other furniture retailers, such as Lovesac and Williams-Sonoma, are also diversifying their sourcing strategies to address backlogs and shortages by exploring alternative countries for production.
In an effort to mitigate product shortages after UFI's closure, Big Lots has employed creative sourcing methods. This includes procuring discounted Broyhill merchandise through arrangements with banks and acquiring inventory from bankrupt competitors. However, the retailer has faced challenges in marketing separate pieces of "mitigation furniture" online, which were brought in to address the shortages. Meanwhile, other furniture companies like Lovesac and Williams-Sonoma are also diversifying their sourcing strategies, exploring alternative countries for production to alleviate supply chain disruptions caused by backlogs and shortages.
Apple has deep-rooted ties with Chinese suppliers spanning three decades, making it challenging to sever connections despite diversifying its sources.