We are now more than halfway through 2022, and it seems the key to success in this post-pandemic market has become clear: Moving forward, successful companies must work together to create customer/vendor relationships that collaborate on the front end to address the issues in today’s market.
Supply chains
I am sure that we are all tired of the constant reports and articles about issues we are all facing regarding supply chains, but it is a factor that isn’t going away anytime soon. The simple fact is products that were previously easily accessible have become scarce or nonexistent. This has been caused by a multitude of factors ranging from a lack of raw materials to unavailable transportation. This means customers need to start the procurement process earlier to account for gaps in supply. It also means suppliers need to be proactive and reach out to consistent customers and give them advance warning about consistently purchased products that might be experiencing hiccups. If customers discuss their products’ intended applications, then suppliers can see if the market contains an acceptable alternative that could be used until the gaps are filled.
Open and clear communication between customer and supplier will allow for everyone involved to be successful.
Design/development
One of the recent issues customers and suppliers have been facing, which has also been exacerbated by the supply chain issues, arises when working on a new design or development project. Knowing the “new normal” of what is consistently available prior to creating a new and improved design can help avoid the always challenging “unicorn hunt” of searching for nonexistent materials. Customers can reach out and talk to their trusted suppliers about possible changes: “We are considering switching from widget A to widget B for our next project. Do you see any issues on your end that might affect that change?”
This simple conversation can prevent weeks of irritation when it comes time to purchase widget B. This initial conversation will also offer suppliers the opportunity to discuss current material costs and trends to limit the sticker shock when a project moves from design to production.
Turnarounds/maintenance
We have all come to realize the importance of our domestic oil and gas industry. The key to keeping this vital industry working at its best isn’t just reliant on the upstream work of locating and extracting these natural resources. We are going to need to ensure that our downstream processing facilities are capable of efficiently getting their products to the marketplace. This means a redoubled focus on maintenance and turnaround work, which can help to avoid those unwanted and unexpected shutdowns caused by vital component failures. The challenge we are facing is the exact product that needs to be replaced might not be as quickly or easily sourced as it has been previously. This again leads to a need for early and open communication about what will be needed, along with what possible alternatives might be available. If customers and suppliers work closely together, there are options available to meet their needs.
Summary
The one constant is that open and clear communication between customer and supplier will allow for everyone involved to be as successful as possible. Increasing the information that is shared back and forth will only improve both customer and supplier effectiveness. Building a relationship on teamwork is the only path available for success. One long-term benefit of working together to deal with these current supply issues is that the lessons learned and alternatives sourced will make everyone better prepared for future challenges.
For more information, visit www.marcospecialtysteel.com or call (713) 649- 5310.
