Can't Spare A Square? A Supply Chain Issue
Service Detail from Advanced Powder Products, Inc.
Can’t Spare a Square
(2013 Seinfeld Episode)
Back in 2014, Tom Peters profoundly stated “But when you go to war, you need to have both toilet paper and bullets, at the right place at the right time” – little did he realize how apropos that statement would be during the 2020 pandemic (gun and toilet paper sales at a record). Certainly, as we look back in history, maybe 10-15 years from today, we will get a good laugh regarding our propensity to hoard paper products. But just like that Seinfeld episode, there are certain supply chain logistical issues that simply can’t be ignored or overlooked.
Just this week, in a more serious vein Marshall Mohr, Intuitive Surgical’s CFO stated, “The environment as it relates to supply chain has deteriorated, gotten more difficult over time”. Also, Robert Funck, CFO of Abbott reiterated “The global supply chains have not been able to keep up with the strong demand out there.” If our premier medical device manufacturing base is struggling with existing circumstances it is incumbent of us all to take a step back and survey our strategies and look for ways to reinforce our logistic and supply chain efforts.
Black Swan events happen, but what about the constant more normative stresses placed upon your existing supply chain? As businesses around the world have embraced world trade, with the associated emphasis on lean sourcing strategies, the risk of being impacted by even more typical changes in consumer behavior, such as an unexpected uptick in demand. Interconnectivity has its efficiencies but when unexpected and sometimes innocuous events happen, suddenly we can find ourselves with production lines slowing or stopped for lack of components – forced to cancel medical procedures or push past due orders to the point of no return.
If your supply chain zig-zags halfway around the world, is it even possible to get to your existing supplier(s) location to make on-site appraisals or aid in relieving any embedded constraint? Does your supply chain provider have the engineering prowess and ingenuity to be able to adapt, create or offer technologically suitable substitutes to keep you up and running? Mitigating risk requires a well-thought-out strategy based on aligning solutions that can be advanced and articulated before being shut down or faced with a crisis in your supply of materials. At APP we speak to the world of MIM, however, most of these aspects are universally true.