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Global supply problems in mechanical engineering: possible solutions
Mechanical engineering is crucial, and the outlook was promising, with expected sales increases of up to 10%. However, global supply problems hampered growth. Fortunately, there are some strategies that can help.
Main causes of supply problems
Global supply problems are not solely due to the corona crisis. There are profound structural causes.
Increased consumption: Economic growth in emerging countries, such as China, leads to strong demand for consumer goods and machinery, changing global commodity flows.
Purchasing errors: Errors in procurement planning, such as reducing orders followed by a sudden increase in demand, led to shortages in essential parts.
Shortage of truck drivers and logistics personnel: The shortage of professional drivers and warehouse personnel slows down transportation.
Consequences of Corona: Port closures and lockdowns in several countries have led to huge transportation problems. In addition, corona-related changes in consumption: changing demand patterns for products, such as electronics and automobiles, have affected the supply of parts.
Energy policy in China: China’s reliance on coal-fired power affects production.
US-China Conflict: Trade disputes between the US and China can affect logistics and manufacturing worldwide.
Individual congestion on transportation routes: Isolated events, such as the Suez Canal blockage, can disrupt international transport routes.
Solutions for machine builders
To mitigate supply problems in mechanical engineering, machine manufacturers may consider the following.
Higher inventory levels: Building inventory levels for critical parts to avoid shortages.
Searching for alternative suppliers: Identifying new suppliers and components to reduce dependence on one source.
Sourcing from German production: Selecting local suppliers to ensure shorter delivery routes.
Parts overhaul: Reuse returned and reconditioned parts to avoid production stops.
Modularization: Developing modular systems to increase flexibility and reduce dependence on specific components.
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Solutions for the future
Solving global supply problems in mechanical engineering requires investment in infrastructure such as ports, railroads and roads. In addition, promoting local production and reducing global transportation dependence is essential.
Although global supply issues present challenges, mechanical engineering remains on course for success. Forward-thinking procurement policies and alternative approaches are critical to the continued success of individual companies.
Batchforce thinks with you
Supply problems in mechanical engineering are complex and require a holistic approach. By implementing strategies to prevent shortages and thinking about future solutions, mechanical engineering companies can remain competitive. Want reliable solutions to supply problems? Contact us for more information.
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