Break Points in the Supply of Materials

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Break Points in the Supply of Materials

With International trade challenges set to continue into 2022 it is important to take the time to review some lessons from 2021 as part of your 2022 planning. The shipping delays have been well reported but for importers particularly at the back end of 2021 manufacturing delays were causing as much if not more problems. The shipping issues have exposed many global supply chains and caused a review of how deep and complex the supply of finished goods is. If you do not control the full production of your finished goods do you know where the components are being supplied from? The manufacturer is likely sourcing material both locally and from International suppliers. If not already, you need to be engaging with each supplier to conduct a stress test on your bill of materials (BOM). There will be break points in the supply of materials and it is critical to understand where that might be and what contingency plans can be made. We are already aware of some customers orders being delayed by up to 6 months as a result of the supply of necessary components, it could be as simple as o-rings or screws, the cost of the good is irrelevant if it is going to delay manufacturing you need know now so adjustments can be made in your ordering or other arrangements sourced.

Delays to manufacturing will be a big issue for many in 2022, the supply of materials is one cause but other matters will also have an impact such as the supply of labour be that due to a lack of skilled staff or what we are seeing now with the Omicron surge the requirement for many staff to go into isolation as a result of contracting COVID or being deemed a close contact.

Please contact us at info@lynair.com.au if you require any assistance with your shipments.