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How one missing part can cause industrial misery
The impact of missing parts cannot be underestimated.
Suppose you are in the kitchen trying to prepare a complicated dish. Suddenly you find out that you are missing an ingredient, while the pot is already simmering on the stove. The feeling of helplessness and disappointment is undeniable. Now, imagine that this happens not only in the kitchen, but throughout the industry, and that the consequences extend far beyond a missed meal.
This is exactly what many manufacturers experienced for a year and a half into the pandemic. They had to wait for crucial parts that were either out of stock or stuck in the logistics process. The question that arises now is: what is the situation today?
A look back: the immediate effects of the pandemic
An Institute for Supply Management survey in 2021 painted a grim picture of the impact of missing parts. Manufacturers were inundated with orders, which is positive in itself, but they faced major difficulties in obtaining the needed parts. This led to significant problems throughout the supply chain.
When you have 99 parts out of 100 ready to go, the whole process bogs down. You simply cannot proceed because you are missing this one part. Imagine having to shut down a $5 million machine. Customers call in a panic and offer to pay overtime or send deliveries via airmail. Or an order sits in port for six weeks because there are not enough staff. These situations are very painful and are still recognizable.
Stunted growth and persistent shortages
Although the survey showed that inventories in factories grew slightly in 2021, it should be noted that part of this growth was products that could not be sold until the missing parts were found.
So we saw unfinished cars waiting for semiconductors and chips, which is just the most visible example of the widespread shortages hampering economic recovery. But it doesn’t stop with cars; plastic products and even cardboard have become scarce. Several industries faced the impact of missing parts.
Disrupted transportation lines and delayed deliveries
Finding parts is one challenge. Actually getting them to the factory is another. Record volumes of freight are overloading the transportation system. There is not enough staff to handle these volumes, leaving important supplies stuck in trucks, trains and cargo ships.
When a container of critical parts is delayed, it has a multiplier effect and delays deliveries of other products throughout the supply chain. It sometimes takes almost twice as long to deliver products that used to be delivered in five weeks.
Today’s situation
Although we see a bright spot on the horizon, shortages of critical components continue to have a direct impact on companies’ production capacity. Delayed or interrupted production, in turn, affects the delivery of products to customers. Fortunately, transportation delays are decreasing, resulting in fewer stalled goods and unsold products.
However, it is important to note that while the post-pandemic situation was mainly related to large shortages of personnel and raw materials, the current situation is related to geopolitical events such as conflicts between countries, and the impact of interest rates on product demand.
Batchforce thinks with you
While we see improvements in the supply chain, we expect continued challenges and pressures in all the core markets we serve. But we understand that your work can’t stop there. Although we have no direct control over global supply issues, we will continue to be transparent and honest about the challenges. We will work closely with you and our suppliers to address these challenges together. If you have further questions, please contact us for more information.
Batchforce continuously invests in its network, new technologies and innovations to optimize efficiency and precision. Whether for one-off projects, prototypes or series production, Batchforce strives to provide customers with high-quality stainless steel parts that meet the highest quality standards. The team of experts is ready to advise and support customers in realizing their specific request.
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