Challenges in Supply Chain Management Today
Thursday, July 12, 2018
Manufacturing can be a challenge for companies, no matter the size or geographic reach of your company. So many pieces have to fall into place for a successful and productive production line including lead times, vendor approval, regulations and compliance, component sourcing, shipping, customer service, and inventory maintenance. And those are just a few!
In the end, the goal is to satisfy customer lead times, getting the right components, equipment, and systems in place that make the national or global relationship a positive one for everyone. From a supply chain perspective, this isn’t easy to do. Here are a few of the biggest challenges facing supply chains, big and small, today.
To put it simply, there just aren’t enough truck drivers on the road right now to satisfy the growing demand. In fact, the ratio of loads requiring movement versus available trucks has exceeded all previous records. Supply Chain Dive cites misclassification lawsuits, dissatisfaction with the ELD mandate, and non-competitive wages as contributing factors to this shortage.
In the “gig economy” era, spending long hours far away from family and friends is looking less and less attractive to young, prospective workers. As a result, the logistics industry (and all of those impacted by it) is feeling the squeeze in predicting accurate lead times and mitigating the increasing costs of transportation and delivery.
A fast-changing consumer market has led to shorter product life cycles and the expectation for companies to keep up with, and adapt to, the latest technology trends and industry digitalization efforts while keeping costs at a minimum. This, coupled with ever-increasing demands for faster and more accurate order fulfillments around the globe has brought about some amazing IT innovations.
Tools that facilitate order tracking, e-commerce, and industry performance can be incredibly helpful, but also a major challenge for many manufacturers and their supply chain systems that want to provide an enhanced customer service experience but have minimal time or budgetary investment available to do so.
Rising Fuel Cost
Operating costs are under pressure due to rising fuel and energy costs. These impact the supply chain a couple key ways. Supply chains place more focus on nearshoring and product design becomes geared more toward “shipability” instead of marketability. Rising fuel costs force the supply chain industry to focus on trimming expenses and efficient transportation of parts, and inventory may be the first thing to go.
We continue to monitor and adjust our inventory and production teams to mitigate impact on our deliveries, still we too are impacted by these supply chain challenges in today’s economy. In your opinion, what are some major challenges facing your supply chain today? Comment on below!
The Tariff Situation – Impact on Materials & ManufacturingThe trade war between the U.S. and China has become close to a year-long affair that has affected nearly every industry nation-wide, and like many manufacturers, Air-Way isn’t immune to the impacts. As tariffs have been ramping up since the start of 2018, it’s hard to understand the current state of trade and what it means for manufacturing. That topic is too big for a single article, but we would like to try and explain the specific tariffs that are affecting our entire industry and Air-Way’s manufacturing and supply chain.
Hydraulic Fitting Supplier vs. ManufacturerE-commerce impacts every industry, including ours, and is fast becoming demand-driven. The “have it now” mentality has taken hold and quite often, many seeking hydraulic fitting and hose solutions, turn to online “suppliers” as their source of choice. A quick google search will certainly bring up several websites that claim they have exactly what you’re looking for (with no shipping fee!), so why say no? It’s important to realize that while they may offer a number of hydraulic fittings and hoses, working with a manufacturer vs. a supplier is the way to go.
Access Equipment Made Right with Air-Way Hydraulic FittingsUnlike many hydraulic fitting and adapter manufacturers out there today, we design, produce, and assemble our products in-house for Original Equipment Manufacturers (OEM) and distributors worldwide. Our rich history of serving as a top-tier hydraulic fittings supplier extends into a variety of industrial and equipment needs and applications - including access equipment.