Keith Kentish, group commercial director at TFC, leading supplier of fasteners and supply chain solutions, explains guidance for manufacturers on supply chain management, while the industry copes with the fallout of the pandemic.
'Just in time supply chain' probably meant nothing to the average consumer before Covid-19. However, the empty supermarket shelves have shone a spotlight on British supply chains like never before.
Covid-19 has highlighted how important the domestic supply chain is, particularly for essential medical products, for example, to produce ventilators for patients in intensive care or the supply of personal protective equipment (PPE) to frontline workers.
In contrast, much of the automotive manufacturing industry ground to a halt, with a ripple effect felt across the supply chain. The impact has certainly been felt in the fastener market, where according to recent reports, sales are down 50% on average. As the manufacturing industry begins to return to work, manufacturers may now feel added pressure to catch up with a backlog of orders.
The impact of the pandemic has been felt by many businesses, resulting in a multitude of supply chain problems, such as overstocking, lacking the space to store components or assemblies that cannot be moved further on, or struggling to source the parts needed to keep production running. Even the smallest, cheapest component can cause production downtime if not delivered on time, which in turn can damage a manufacturer’s own reputation if assemblies are not delivered on time.
Even before Covid-19, 84% of businesses were struggling to manage supply chain risk. Shorter, simpler supply chains could help streamline things for the future, partly by reducing the number of possible points of failure. Consolidating your suppliers, for example by turning to vendor managed inventory, could be a new way to run the business, meet budgets, margin enhancement expectations and production KPI’s and help maintain revenues.
Discussing with your potential new service provider whether they offer options such as overnight installations, bin pre stocking or pre labelling could help you to access the components you need while minimising time on site and maintaining effective social distancing.
Technology can also be used in other ways to help manage inventory on a manufacturing side. Consider this example. A manufacturer has trouble sourcing PPE for staff to work safely on site. When PPE is in stock, it disappears quickly. Implementing a vending solution can help prevent excessive consumption of consumables and introduce ownership so that manufacturers can safely and effectively manage PPE distribution.
The supply chain and logistics industry is clearly in for a shake-up. There is currently no clear and comprehensive solution to carry British manufacturing forward. However, by sharing our knowledge, skills and expertise, we can develop creative, effective solutions together.
TFC www.tfc.eu.com