Supply chain disruption can cause businesses to lose contracts, money and clients. COVID-19 has led to significant shipping delays and component shortages across North America. Companies are experiencing a global supply chain buckling spread among all industries, although it’s expected that the issues will be transitory. Multiple component shortages are holding back manufacturing, including a shortage of heating components.
The results are:
- Longer wait times to fulfill orders
- Increased shipping times and costs
- Lost business
Overcoming the supply chain disruptions requires a new approach to how businesses source their components.
How to Navigate Current and Future Supply Chain Issues?
The National Federation of Independent Businesses reports that a staggering 62% of business owners anticipate the supply chain disruptions continuing to impact their businesses. Shortages hit numerous industries hard, including construction, computer chips, auto manufacturing, electronics and lumber.
Adapting to these issues requires:
Working With Local Suppliers in North America
North American companies should begin working with local suppliers that maintain operations in the US or Canada. Datec Coating Corporation runs a design and manufacturing unit in Canada to supply heating components and technology that:
- Ontime manufacturing and supply
- Ensures minimum component supply
- Fewer business disruptions
- Lower costs
With floods in Europe and issues in Asia, shipping costs have increased along with delays. Sourcing locally reduces dependence on overseas shipments, which account for 90% of all traded goods.
Local suppliers, like Datec, can manufacture and supply components faster and more efficiently to North American companies by shipping via air or roadway.
Audit and Remove Weak Supply Chain Links
Supply chains always have their weak points. Businesses should continue to audit their supply chain routinely to find weak links that may have:
- Longer shipping times
- Higher costs
- Consistent disruptions
Working with multiple suppliers can help you better safeguard against supply chain disruptions today and in the future.
Benefits of Working with Local Suppliers
Shifting your company’s mindset away from the cheapest supplier to country-of-origin can help improve the supply chain in numerous ways:
- Reduce costs. Spend less on logistics, save money on shipping and reduce costs by sourcing locally. You can also reinvest the savings back into your business.
- Greater control. You can visit local suppliers, build long-term relationships and ensure that manufacturing is up to your business’s standards. You gain a lot more control over your business’s supply chain when you choose local suppliers.
- Dependable routing. A shorter supply chain dramatically reduces the potential disruption due to transit delays.
- Improve your local economy. Sourcing from local companies improves your local economy. You’ll be ensuring that your money boosts the revenue of local suppliers that can hire locals and spend more money in your area.
- Reduce environmental impact. Your business can reduce its environmental impact and carbon footprint by lowering the travel times of goods by sourcing locally. In turn, you’ll boost consumer confidence and brand awareness.
COVID has made supply chain weaknesses apparent for businesses worldwide. When you begin partnering with North American suppliers, you’ll improve your supply chain, reduce shipping costs and time, and enjoy greater control by being able to visit manufacturing facilities in person.