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March 2021 #13260 Page #17
Supply Chain Disruptions Sean Hubbard Spida Machinery
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oday’s environment has created supply chain disruptions throughout the world. Nearly every customer and supplier I have spoken with over the last few months has indicated production delays are prevalent or imminent. Of course, the pandemic has caused much of the recent impact, while the recent snow and ice storms that swept across the United States have further exacerbated the situation. Several other factors contribute to supply disruptions, including product issues, transportation delays or failures, cyber attacks, and of course price fluctuations. In an effort to minimize the disruptions to your factory and your customers, planning is key. Let’s identify several ways one can prepare to minimize the effects on the organization. 1. Increase inventory. 2. Identify alternate suppliers and diversify your supply base. 3. Conduct a vulnerable products and vendors audit. 4. Partner with a logistics expert.
1. Increase inventory. Prepare to increase your inventory, or in some cases have your supplier increase their inventory. It is not uncommon that we contract with suppliers to stock a percentage of products at their facility. Developing usage reports, we can accurately identify a base level of inventory our suppliers should carry. Occasionally, we will place a purchase order to cover a 3 to 12 month span, ensuring production time in their facility and often stabilizing the price for the duration of the contract.
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