Overcoming Raw Material Acquisition
There’s no doubt that the pandemic has tested the ingenuity and flexibility of suppliers globally as they have tried to maintain essential operations. Here at J&J Precision, we also know that the pandemic has proved to be a real test of our business values and purpose, which is something we don’t take lightly.
Recently, we have faced some challenges regarding the availability and pricing of raw materials. Specifically, coiled flat stock – including steel, stainless steel, brass & copper, aluminum, and alloys. Unfortunately, due to quickly changing lead times and pricing, we have increased delays and pricing with our recent commitments.
What We Can Do to Minimize These Challenges
While we expect that supply chain challenges will continue to persist, J&J Precision is acclimating to these challenges by receiving up-to-date information for RFQ’s with approved suppliers and seeking additional suppliers if necessary to meet our customer needs.
We encourage our customers to prepare and place orders a year in advance. In return, this will assist J&J Precision in the process to follow and plan accordingly for established lead times and cancelation agreements.
With this in mind, we are also encouraging our customers to forecast what materials they will need in the coming year so we can place blanket orders to accommodate more significant supply demands.
This will assist with:
- Pricing: Blanket orders will ensure customers receive their materials for one solid price and possibly avoid inflation.
- Timing: By ordering materials all at once, we can ensure timely delivery.
- Quantity: Blanket orders will allow us more time to deliver a high quantity of products to our customers.
As the pandemic continues to disrupt the supply chain with unforeseen issues, J&J Precision will be there to serve its customers and address these issues head-on by working smarter.