Coronavirus has severely impacted the manufacturing industry and supply chains. In response to product shortages, unexpected delays, and fluctuating customer demand, Profab has evaluated and re-strategized its planning and supply chain management. As the effects of the pandemic continue to shape the future of manufacturing, customers need to understand how these changes will impact their business.
How Profab and its Customers are Still Being Impacted Today:
Extended lead times
Component availability and factory shutdowns have drastically increased lead times. Prior to COVID, the average lead time for components was around 12 to 26 weeks; that timeframe has now increased to a minimum of 52 weeks for a vast majority of components. Profab recommends customers place their orders as early as possible so that there is ample time to ensure all necessary parts are reserved and production timelines are met.
An increase in demand accompanied by a shortage of key raw materials has affected both inventory and prices. Since demand and prices have been extremely volatile, customers can now expect changes after their initial quote.
How We’ve Adapted at Profab:
To be as efficient as possible, we’ve used our in-house systems and developed processes that exceed our customers’ expectations. Here are some of the ways our company has continued to adapt to the changing landscape of the manufacturing industry:
Tracking inventory in real-time: To ensure we have all the necessary components for every circuit board order, we’ve used our in-house tracking system called VUE. This supply chain platform allows us to know what inventory our suppliers have coming in and let us place orders before anyone else. This is especially handy for obtaining scarce parts. We can use VUE to continuously check for stock on a daily basis and immediately place orders when they are available.
Drop-in modules: The COVID supply chain disruption has increased the likelihood that a necessary part won’t be in stock. As an alternative, we have helped our customers design drop-in modules that use available parts to replace those that are no longer attainable. At Profab, we’re encouraging our customers to provide forecasts so we can identify and track critical parts.
These challenging times have significantly disrupted supply chain manufacturing and slowed production. In order to mitigate these effects and continue to meet the demands of your customers, your company should place orders far in advance. More importantly, you need a manufacturing partner that can find creative solutions to overcome delays and lack of inventory.
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These challenging times have significantly disrupted supply chain manufacturing and slowed production