Appareo: David Batcheller, President

Flexibility and Adaptability are key to Weathering Supply Chain Disruptions

Rethinking how to forecast and being prepared to flex, adapt, and evolve will help manufacturers navigate ongoing supply chain challenges.

responses provided by David Batcheller, President, Appareo

Supply Chain Disruptions

What industry challenges have supply chain disruptions brought to light, and what can the industry as a whole do to overcome them?

In a short-term context, the best advice we can give to manufacturers is in the area of coping with the supply chain situation and arming their suppliers to be as equipped as possible to deliver success for them. In this area, forecasting is crucial. Right now many assemblies we manufacture have significant, sole-sourced, content that is running lead times of 52-72 weeks. Orders we’re placing for late 2022 (as of August 2021) are being returned from our suppliers with 2023 commitment dates for delivery. As a result, we’re driving significant order volume and commitments for components well into calendar year 2023. Forecasts that used to be only directional for long-term capacity planning are now material for component ordering and security—so get long term (at least 2-year month by month, ideally 3-year) forecasts to your electronic suppliers.

Flexibility is going to be a key trait for all manufacturers to effectively navigate the supply chain situation over the next 18 months. Be prepared to flex, adapt, and evolve. |

Head to the Web

Visit www.oemoffhighway.com/21723061 to watch our video interview with David Batcheller for his insights on the potential of AI and augmented reality, as well as what challenges and opportunities lie ahead for the heavy equipment industries.