A Frigid Supply Shortage — Are You Down With It?

While most of us are worried about supply risk in the B2B supply chain (e.g., a supplier in Detroit going out of business or a supplier in India or China substituting cheaper materials), it also turns out that supply risk -- supply shortages, to be exact -- will also impact a good night's sleep -- literally. According to Reuters, we are about to face supply shortages of luxury goose down. The above-linked story notes that, "a good night's sleep on luxury Hungarian down pillows is likely to become a rarer experience as Hungary's poultry sector declines in the face of mounting problems ... But in recent years Hungary's poultry sector has been hit by repeated bird flu outbreaks, leading to the culling of 1 million birds, mostly water fowl, and a doubling of feed prices." The article suggests goose down duvets are one area where European-sourced products command a 2.5-3x premium over Chinese sourced and manufactured counterparts. Perhaps this suggests that to afford a good night of sleep, we all better pad our profit margins from sourcing cheaper parts and services globally for our businesses, in order to maximize our bonuses to avoid cheap Chinese down comforters from thwarting a good night sleep. Hat-tip: Amy Edwards.

Jason Busch

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