Promo Insiders: Navigating Supply Chain Instability With Sunscope’s Dilip Bhavnani
As the War in Iran continues to threaten the global supply chain, Counselor editor Tara Lerman sits down with Bhavnani to discuss how suppliers can keep their heads above water.
The war in Iran and the resulting closure of the Strait of Hormuz has had ripple effects across the promotional products industry.
“The Strait is one of the most critical waterways in the world, [and] 20% of the world’s oil supply passes through the Strait of Hormuz,” Dilip Bhavnani, chief operating officer of Counselor Top 40 supplier Sunscope (asi/90075), tells Counselor Digital News Editor Tara Lerman. “When it’s closed or destabilized, global oil markets react immediately.”
Iran and the U.S. have been negotiating an end to the war for weeks now, but have not yet reached a long-term ceasefire agreement. The conflict in the Middle East, explains Bhavnani, has had both direct and indirect business impacts.
“Impact number-one is an increase in transportation costs, especially with air freights,” he says. “Impact number-two is raw materials that are derived from oil, so when we look at our production, that’s plastic, polyester, apparel, bags, pens […] it increases costs [on those items]. It creates uncertain supply chains and a shortage in supplies of a lot of these raw materials.”
However, it’s the indirect impacts of the conflict in the Middle East that Bhavnani says are even more disruptive.
“We’re seeing longer transit times and rerouting, and that creates a serious impact all over the globe,” he adds. “This means longer lead times, more inventory in transit, and it puts real pressure on the supplier side, distributors and all our clients.”
On this week’s episode of Promo Insiders, Lerman sits down with Bhavnani to find out how Sunscope is navigating these uncharted waters – and what suppliers and distributors alike can do to stay resilient.
Key Takeaways
• Counselor Digital News Editor Tara Lerman spoke with Dilip Bhavnani, chief operating officer at Counselor Top 40 supplier Sunscope (asi/90075), to discuss the war in Iran’s impact on the promotional products industry.
• Roughly 20% of the world’s oil supply moves through the Strait of Hormuz, and its disruption has triggered immediate fuel and energy price volatility.
• Bhavnani says direct impacts include rising transportation costs, especially for air freight, and higher prices for oil-derived raw materials such as plastics, polyester, apparel, pens and bags.
• The conflict is also driving supply chain uncertainty and raw-material shortages, putting added cost pressure on suppliers and distributors.
• Indirect impacts – such as longer transit times, shipping reroutes and extended lead times – are proving even more disruptive across the global supply chain, Bhavnani says.
• Bhavnani discusses how Sunscope is navigating these challenges and offers insight into how suppliers and distributors can stay resilient through diversification, transparency, adaptability and communication.