Quest has over 20 years of experience working with Life Science companies. This overview will tell you who we are, show you what products we offer, and give examples of how we work with these companies. If you don't already have a contact within Quest, please email our VP Sales, Mark Towner at markt@questsafety.com to discuss how we can help you.
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Key Actions to Create a More Resilient Supply Chain
4 Key Actions to Create a More Resilient Supply Chain
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COVID-19 disrupted supply chains around the world. But those same supply chains have also been a vital lifeline to support the response, keeping essential medical supplies, food and other key necessities flowing where they’re needed most. The pandemic is not just a short-term crisis and recent data shows the pandemic may experience a resurgence. It has long-lasting implications for how people work and how supply chains function. There is a pressing need for businesses to build long-term resilience in their value chains for managing future challenges.
Continuing global supply chain problems underline the need for companies to develop the expertise and systems to make their supply chain more resilient.
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The world continues to face supply chain disruptions: from semiconductors and computer chips, to a variety of plastics, lumber, and paper products. Even chlorine and several meat products have faced major supply issues. But businesses can also use this opportunity to reset their operations with digital capabilities and renew logistics operating models to increase operational efficiency and effectiveness. Doing so will enable them to emerge stronger and with supply chains that are more resilient to future disruptions. Supply Chain Disruptions Persist
Starting with the pandemic, container shortages, labor shortages (especially drivers), wintery weather in February, then the blocking of the Suez Canal by a container ship in April, on-going droughts, massive flooding in China in July, factory fires, and other logistics woes are plaguing companies. The flare ups with the COVID-19 Delta variant is already threatening many parts of the world and loom ahead for the USA. Supply chains are a mess
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Shortages have been heightened by surges and pent-up demand
After nearly a year of dialing back, the consumer is venturing out with stimulus checks. Manufacturing, construction, retail, and distribution have seen the most significant impact. The situation has been made worse by depleted inventories, price increases, and transportation and shipping problems. Not only that, items like new cars lacking critical microchips and lack of lumber for new housing starts are rapidly increasing prices. Supply is not meeting demand and will not be resolved any time soon as the supply chains grapple with the next wave of challenges.
Today shipping and transportation is a key bottleneck
Shipping and transportation is delayed and is especially true when shipping from China. It requires more than double the lead time and containers are still difficult to find with prices two to three times higher. The rate of delinquent shipments has sharply increased. Labor shortages have made matters more difficult. The labor shortage in the transportation industry was peaking even before the pandemic, but even staff to manage the process is an issue. Industry sources report that many of the more senior staff in supply chains and logistics is retiring rather than dealing with the constant issues and the stress around shipments and unhappy customers.
Worsening supply-demand imbalances are expected
A survey of purchasing managers was recently conducted by the Institute for Supply Management. They anticipate disruptions to last for longer than 12 months, with reports of this situation dragging on well into 2023.
4 Key Actions to Create a More Resilient Supply Chain
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The Emerging Supply Chain Management Ethos
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Beyond Just-in-Time
New practices, values and approaches are emerging to better manage disruptions from experts at such organizations as PwC, Deloitte, TheWall Street Journal and Supply Chain Consultants. There
JIT dramatically improved efficiencies and cash management over the last several decades. However it has been harmful in situations like today. According to John Konrad, founder and CEO of gcaptain.com, “We’ve gone to this fragile, just-in-time shipping that we saw absolutely break down.” In many industries, especially for ones dependent on China, inventory is carried on the high seas and not in local warehouses. Most experts are recommending a better balance in maintaining some local inventory that is more easily accessible as part of risk management.
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Single Sourcing is No Longer Recommended
seems to be general agreement on four potential steps:
Companies are diversifying suppliers and contract manufacturing partners. They can no longer count on stability and follow a simplistic, cost-focused software algorithm. Many larger companies use multiple suppliers—even at marginally higher costs—to avoid losing business and disappointing customers due to potential supply chain disruptions.
4 Key Actions to Create a More Resilient Supply Chain
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Invest in the Right Technology
Technology investments are relatively cheap when compared to lost sales and lost customers. Larger companies need integrated data from customers, sales, suppliers, and producers through modern, sophisticated inventory management systems that connect to suppliers, production facilities, warehouses, and the sales organization. Inventory management software can provide real-time, detailed visibility into inventory levels, stock on order and supplier performance. Knowing the inventory levels at vendors and raw materials at suppliers will help reduce volatility. Integrated software provides immediate notification, quickly identifies all impacted purchase orders and in-transit inventory. Some software can recommend alternative options and track competitive supply chains.
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Do Not Forget Suppliers’ Suppliers
They can become the bottleneck. Best-in-class companies map out and monitor the entire supply chain; especially for their top profit generators. In times of shortages, those that have early warnings of disruptions and visibility into which sites and products would be impacted can get in line first for limited inventory and capacity. Being better prepared can be a competitive advantage.
Organizations must determine the right mix of resilience that they want to build into their products and revisit their supply chain strategy to ensure that resilience is embedded into all areas of their business, including research and development, product design, and planning. By focusing on building resilience comprehensively, and ensuring it is not seen as an afterthought, organizations can be better prepared for whatever the future brings.
If you are looking for assistance with your supply chain needs, Quest can help — contact us today.
4 Key Actions to Create a More Resilient Supply Chain
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www.QuestSafety.com • safetycsr@questsafety.com • 1.800.878.4972
4 Key Actions to Create a More Resilient Supply Chain
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