Avoid Supply Line Disruptions from China

How do you break the status quo of disruptions to your supply line?

With 99% of manufacturing companies reporting supply chain disruptions, there’s no doubt that they are common. 58% of those companies reported suffering a financial loss a result of those disruptions. While they may be common and expensive, does it stand to follow that they are necessary? Should you assume that they a normal part of “doing business” or is there something you can do to eliminate them from your process?

Supply chain disruptions are dangerous and unpredictable. They can be a minor delay of 1 or 2 days. Or they could be catastrophic, resulting in shutting your customer down through your failure to deliver. Your customer can then charge you by the day or hour for damages and delays. Disruption could cost you tens of thousands of dollars and in some cases, cost you the customer’s loyalty or your own business entirely. Custom manufacturers have been put out of business and forced to declare bankruptcy due to supply chain disruptions that may have been avoidable. 

A frequent cause of supply chain disruptions is using suppliers who aren’t implementing lean manufacturing practices themselves. This will only thwart your own efforts as their delays and heightened costs affect your bottom line. The auto industry has lost $50 billion since 2005 because of supplier relationships that were poor and short-sighted. Good supplier-management has a domino effect for your company and possibly, your industry. For example, if you want to “order as you need it” to keep your stock and inventory levels low, it’s imperative that you use a supplier who is able to provide you reliably with product as you need it. If they are waiting on supply from up-stream and experiencing their own delays because they neglected to dual-source, you suddenly have a supply chain emergency.

What can you do to prevent costly supply chain disruptions and catastrophe for 
your customers?

If you are using a supplier that has an absence of lean production practices, you may need to maintain stock inventory to prevent disruptions for your customers. Remember, failure to use suppliers who are using lean production methods can cost you thousands of dollars. There’s no lead time when you need something: they can’t deliver, you can’t receive, you, in turn, can’t manufacture.
  • Look for domestic metal parts suppliers to avoid costly oceanic delays and high air freight charges.
  • Maintain dual-sources so that in the event of one supply failure, you always have a back up for your customers.
  • Examine your own processes to see where you can eliminate waste, do more with less, and add value with your product or service.
  • Refuse to sacrifice quality in order to choose the lowest bid. Paying for damages and harm done through dangerous production mistakes (for example: lead paint on toys made in China!) is much, much more expensive than having the job done right the first time. Remember, the lowest bid may also come with hidden expenses that aren’t included on the initial quote. 
Your own lean production efforts must have a focused eye towards eliminating supply chain disruption and production waste. Unique Tool & Manufacturing is a domestic metal parts supply company that can reliably offer you continuous supply availability 
and quality of product as you need it. Don’t accept expensive delays as a necessary part of doing business in the metal industry! To speak with someone who can supply you with customized stamping products or help you examine your own production practices, call 1-734-850-1050 or send us a message using the contact form below.
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