OTC Insights Team
Established in 1963, OTC Industrial Technologies is one of the largest industrial distributors & service providers in the United States. We're committed to seeing industrial operations advance through expert technical solutions & unmatched support using our years of experience.
If there’s one topic on the minds of manufacturers, it’s the supply chain challenges we’re all facing.
After weathering lockdowns, shutdowns, and a global pandemic, many of us thought we’d be able to seamlessly slide into normalcy. However, as we continue to grapple with the lingering pandemic, vaccines, and restrictions, we’ve come to realize just how tenuous and fragile our global supply chain really is.
No matter your industry or where your business is, you’re facing a supply chain crisis. What makes this crisis unique is that it has been the result of multiple issues, rather than a single event or factor.
It’s the unfortunate result of a pandemic that shut down ports at the same time it drastically reduced global need. While we are waiting for production to scale back up, the labor force has also faced disruption. Amid the pandemic, trucking companies are struggling to find available drivers while freight sits stagnant, waiting to be delivered. There’s no room for container ships to dock at port. Geopolitics, from tariffs to government bans and worse, have left logistics in disarray. Even basic supplies are impacted.
While supply chain issues may be just one problem to arise as a result of the global pandemic, there are also a host of others without an easy solution.
The Impact of Supply Chain Disruption
Sitting front and center of the supply chain crisis are manufacturers. They need this supply chain to produce anything from tools and machines to raw materials and parts. They also need the supply chain to ship product to customers and end users.
As the markets began to open, with global restrictions lifting as the vaccines rolled out, many manufacturers expected an influx of business, revenue, and profits. The problem has been that the growth and profits are limited by the current supply chain crisis. Rather than looking to capitalize on opportunity, business leaders are struggling to manage customer expectations and fill what orders they can.
The Distributor Advantage
Even in the face of the historic supply chain crisis we find ourselves in, there are opportunities for manufacturers who work with distributors than can mitigate potential damages. Demand continues, and revenue can be made by the companies that can meet that demand.
Let’s look at a few tips for manufacturers and their customers looking to overcome the crisis and seize opportunity.
Plan for Future Needs
Now more than ever, you need to place orders early. That requires good data and accurate planning. The earlier you forecast, the more data you will have on operations, materials, and market needs, resulting in more accurate forecasts. For your machines, it’s a good idea to set up a solid maintenance plan to avoid rush orders of parts and to set up regular deliveries of parts and materials.
Diversify Your Supply Chain
In today’s supply chain crisis, relying on a single OEM or resource is dangerous. One late shipment or a ship waiting to unload at port can leave your production shut down, and you with angry customers. Source multiple companies for your needs or work with a supplier that has access to the wider market. They have the relationships and market knowledge to source and purchase alternative parts, machines, or materials if you need them. Let them do the work for you, and act as your advocate.
Communicate and Collaborate with Suppliers
The age of faxing orders with a shipment deadline is over. For larger purchases, let suppliers know your needs, and then work with them on getting them met. Communicate honestly and openly and be ready to explore alternative options. It may mean shipments coming in phases or looking at alternate sources. Collaborate as you work through the challenges and stay on top of your orders to identify and work through problems as they happen.
Communicate and Collaborate with Customers
A little honesty and communication can go a long way in growing your business, especially in the difficult conditions we currently find ourselves in. Now that the supply chain has become customer-centric, it’s up to the manufacturer to provide a positive experience to their customers. Be honest and tell customers about the supply chain challenges you’re facing. Rather than hiding a potential problem, work with them to develop a solution that works. Provide a positive experience, and even in a difficult situation you’ll leave with a happy customer.
Experience and Relationships Matter
In challenging times, experience matters. Working with a company that understands the supply chain and has built and nurtured relationships with OEMs and suppliers is not just an advantage, but a success factor. Being able to tap into a wider network of supply sources, with knowledge of the materials, parts, and technology in that network, can keep you a step ahead of the competition.
OTC Industrial Technologies Is Ready to Work with You
These are difficult times for manufacturers, but solutions are available.
With an international network of suppliers and strong relationships with market leaders, OTC provides companies the convenience of working with a single supplier for their industrial and manufacturing needs. That experience can prevent problems, and help you avoid mismatched equipment or inefficient product flow. They can handle not only new machines, but parts as well.
Contact OTC today to learn more.
