According to the Association of Equipment Manufacturers (AEM) latest quarterly report, over 95% of manufacturers are experiencing supply chain issues. To accommodate, 70% are in the process of redesigning their inventory management practices.
If you haven’t already begun the process of revamping your inventory management, now is the time. Expectations are high that the supply chain challenges won’t disappear anytime soon.
Over 50% of equipment manufacturers believe they will last through the end of the year, while almost 30% see supply chain disruption as a problem continuing beyond 2022, AEM shares.
What should you be doing right now to reduce your supplier challenges and increase supply chain visibility?
Find backups with capacity
Suppliers will continue to face limitations as they struggle to meet capacity due to increased demands. This is especially true for suppliers who rely on global sourcing to deliver product, which is facing an average of three times the challenges of domestic sourcing. Diversifying your suppliers to find backups with capacity can help you keep your inventory balanced and accommodate changes.
Many companies are focusing on nearshoring their suppliers to cut not only production time but shipping time and cost. As a company with product 100% sourced and manufactured in the USA, DuraMark Technologies has avoided major supply chain interruptions, meaning increased capacity to quickly turn orders.
Build safety stock
Just having a backup supplier isn’t enough. Put them to work to build safety stock.
Building safety stock can alleviate major inventory headaches and help maintain positive customer relationships. Take time to examine your traditional inventory demands and use it to determine safety stock levels for each item.
Some manufacturers are also turning to adding additional purchasers to their team in order to help manage diversifying suppliers and an expanding supply chain.
Consider how partners use technology
Supply chain visibility (SCV) is critical as you navigate the constant changes. Internally, using supply chain management technology helps you track increasingly complex systems and gives you the ability to identify potential risks, ways to improve efficiency, and how to increase customer satisfaction.
But how are your suppliers supporting your supplier relationship management (SRM) and SCV?
SRM shouldn’t just fall on your shoulders. Instead, your suppliers should be engaged in collaboration, visibility, and automation. One of the key ways to do this is through tech solutions that help you place and track orders, have full visibility of the process, and provide access to customer support.
The DuraMark team is dedicated to building exceptional relationships with our customers. That’s why we rolled out our new portal offering to continue driving these initiatives as a label supplier.
Manufacturers and suppliers are all in this together. We believe in not just being your label provider but in helping you solve key inventory challenges.
If you’re curious about DuraMark as your backup or primary label supplier, schedule a time to talk to see how we can help.