Due to a variety of factors, supply chain challenges have increased dramatically for production facilities and manufacturers across the entire world. With seemingly every company struggling to find what they need, and production lines and supply chains already stressed beyond their comfort points, short-term goals for the remainder of 2021 will predominantly center around acquiring the parts and materials needed to make a business work.<\/p>\n
We\u2019ll dive into specific issues affecting the supply chain, and the effects associated with them, in a bit. But first, it\u2019s important to realize that the current strain on the system isn\u2019t expected to be alleviated soon. Attacking the challenges with proactive solutions, and communicating and collaborating with trusted supply partners, will be essential for businesses from across the spectrum in dealing with the current environment. Acting now may improve some Q3 2021 supply issues, but the primary benefits will come further down the line \u2014 in Q4 or Q1 2022.<\/p>\n
The biggest factor impacting the supply chain in 2021 is the same one that supply managers have been wrestling with for all of 2020 \u2014 keeping operations on track as the world deals with the COVID-19 pandemic and all of the related disruptions. For example, a strong vaccination roll-out program in the United States has led to a feeling of \u2018returning to normalcy\u2019 across virtually all industries. But, in other countries that success has not yet been felt. Outbreaks are still leading to shutdowns in some parts of the world, including in production and manufacturing facilities, which in turn lead to additional supply shortfalls or logistic problems.<\/p>\n
The onset of the pandemic in 2020 led to many facilities slowing down or shuttering production lines. However, demand for many products remained at the same level or increased. It\u2019s led to production struggling to catch up and meet those demands since. Production lines are full, there\u2019s a backlog for many materials and parts, and any further delay or disruption is magnified as a result.<\/p>\n
Material shortages have been problematic for many products. In an obvious example, the February storms that ravaged Texas and the Gulf Coast<\/a> resulted in critical supply shortages for many poly-related products. Such disruptions interrupted, completely, an already strained supply chain and exacerbated the delays for fabricators, suppliers, and manufacturers of all related products.<\/p>\n As production, across the globe, labors to catch up with demand while negotiating with the impacts of pandemic regulations and delays \u2014 and material shortages \u2014 it\u2019s been slowed by the logistical issues common across many sectors. Shipping ports are full and\/or overwhelmed. Backlogs of orders sit, waiting to be processed through customs. Warehouses are empty due to bottlenecks at other points in the supply chain.<\/p>\n The confluence of these factors has affected vendors in obvious and negative ways. Vendor lead times have risen exponentially due to these supply chain challenges. What was once maybe a four or six-week lead time for a specific part or order has transformed into a wait of two or three times that length. In this example, that\u2019s now 12 to 16 weeks.<\/p>\n As stated earlier, these issues will not be resolved overnight. While the impact of supply chain delays is certainly being felt in the here and now, they\u2019re also likely to persist throughout the rest of 2021. As supply chain managers search for ways to make their processes more resilient and flexible \u2014 such as negotiating away from single-source suppliers \u2014 vendors will need to act quickly to address these issues in time for Q4 2021, or Q1 2022 orders.<\/p>\n As a vendor, there are some steps you can take to address these issues and better position your organization to meet these challenges. Unpredictability has been the biggest defining trait of managing supply chain challenges for most of the last two years. However, with services from a trusted supplier \u2014 such as Marco Rubber & Plastics \u2014 you can mitigate against the unexpected.<\/p>\n Let\u2019s examine some of the vendor-centered options available to add resiliency to your supply operations.<\/p>\n Many organizations opted for lean supply chain operations before the pandemic \u2014 giving up resilience and flexibility for efficiency. Now many are re-examining that choice. Finding ways to generate safety stock is now seen as a beneficial strategy, and one way to do so is working with suppliers with blanket orders.<\/p>\n Blanket orders are usually developed with consistent, repeat customers with a good working history with suppliers or vendors. They typically come with predefined ship dates and allow both parties to better schedule what parts will be needed and when to send them.<\/p>\n Marco Rubber & Plastics will offer flexibility in blanket orders as well. We have the capability to either schedule regular shipments \u2014 an auto-filled order that goes out each month \u2014 or arrange a large order of parts that can be held until needed by the buyer.<\/p>\n Another way to alleviate supply chain issues with a specific product, part, or material is to investigate alternatives that can serve the same purpose, but may be more readily available (or available at a better price point). For example, at Marco Rubber & Plastics, our engineering group can examine the requirements of the part needed for your application and then offer alternatives that will meet those requirements.<\/p>\n Here\u2019s a real-world example. Perfluoroelastomer (FFKM) is a high-performance sealing material often needed for specific applications where the material\u2019s heat and chemical resistance, and near-universal chemical compatibility, are required. Among all FFKM brands, Kalrez\u00ae is the most recognized and requested, but it\u2019s also currently difficult to obtain. By consulting with engineers who know the specifics needed by the application, Marco\u2019s team can recommend Markez\u00ae \u2014 Marco\u2019s own proprietary FFKM<\/a> \u2014 when warranted as an available replacement at a lower price point.<\/p>\n Finding alternatives to hard-to-source materials and parts will be critical to easing some of the constraints in place given the current state of the supply chain.<\/p>\n As a vendor or retailer, developing a full partnership with a supplier can add security against supply chain disruptions. These partnerships can be augmented with a Vendor Managed Inventory (VMI) program.<\/p>\n VMI programs are a supply chain agreement where a supplier (or vendor) will manage, maintain, and optimize their inventory while it\u2019s in the possession of a buyer. Essentially, inventory is replaced for the buyer or retailer without them initiating a purchase order. The buyer shares inventory data with a vendor or supplier, and then that provider determines how often, and how much, to send a particular product to a buyer.<\/p>\n Successful VMI outcomes will be determined by suppliers knowing when<\/b> to replenish a partner\u2019s inventory. That means communication and sharing information will be key for both sides. With current sales data from the buyer, and demand forecasting information from the other side, both can avoid overstock, understock, and wasted inventory.<\/p>\n Marco Rubber & Plastics is proud to implement VMI programs<\/a> with previous, regionally proximate buyers. Connect with us to learn more<\/a> about how we can institute such a program with you.<\/p>\n With more than 40 years of experience<\/a> in providing custom sealing solutions, Marco Rubber & Plastics goes beyond the limits of catalog commodities. With the world\u2019s most extensive inventory and production network, we\u2019re positioned to help you meet the supply chain challenges of today and tomorrow.<\/p>\n Our inventory of specialty and standard sealing solutions is backed by best-in-class technology, service<\/a>, and support. With more than 14,000 repeat customers, Marco Rubber has proven capable of providing the materials, parts, and service to help you seal your success.<\/p>\n We\u2019re here to help. In an unpredictable world, our expertise and experience can provide some much-needed stability and dependability. Our application engineers and material experts can guide you to custom formulations for your specific needs, or find alternative products that may be more readily available. Our relentless commitment to customer service means we\u2019ll work with you, through blanket orders or VMI programs, for example, to answer the challenges of the current environment.<\/p>\n Multiple supply chain challenges remain for suppliers, vendors, and buyers. Learn more about them and how to deal with them here. <\/p>\n","protected":false},"author":3,"featured_media":125,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"\nFortify Against Supply Chain Challenges<\/h2>\n
Blanket Orders<\/h3>\n
Alternative Products<\/h3>\n
Stocking Programs<\/h3>\n
Make Marco Rubber Your Supply Chain Partner<\/h2>\n
Seal Your Success with Marco Rubber & Plastics<\/h3>\n
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