As you already know, raw material shortages came to define 2021, and empty shelves pushed the term “supply chains” into the national spotlight.
Supply chains have been disrupted by many factors, including labor shortages, ships tied up in harbors waiting to deliver cargo to the packed warehouses, and constraints on worldwide shipping in an effort to contain the spread of Covid-related viruses. And that was 2021!
Unfortunately, with skyrocketing demand, Section 232 restricting steel and aluminum imports in the U.S., and the SMC currently on strike, these issues aren’t expected to go away in 2022. It is not all doom and gloom, though. J & J Precision will continue to put in the work to navigate the complicated business of supply chain issues.
Today's Actions Can Affect the Future
As the shortages of certain materials and products will likely continue. Companies can get better at forecasting and responding to potential disruptions, making their impact less pronounced.
In order to create some predictability, we can work together to assist in managing some of these hurdles. While this will not alleviate all the issues, it will undoubtedly help you and definitely help us serve our customers better.
Forecasting: Not As Hard As You Think
You don’t need a crystal ball in order to see what’s coming. In fact, it’s relatively simple. Planning production to mitigate the ramifications of some of these complex issues is a powerful tool you already have. Here are some things you can do.
- Predict product demand, re-visit production forecasts
- Communicate large order demands and production requirements in advance
- Commit to one-year purchase orders and safety stock
We are all in this together! At J&J Precision, we will continue to navigate this challenging situation by continuing to focus on safety while taking care of each other and our customers
