During a pandemic, it's wise to reevaluate your arc-rated (AR)/FR clothing supplier to ensure you continue to have access to the products and services necessary to function safely in a crisis.
Many companies have suffered large drops in revenue, especially those with ties to the oil and gas market. These huge, unforecasted losses inevitably impact a company's operational ability. Supplier problems can then become your problems and negatively impact your company.
COVID-19 has caused major disruptions in global supply chains, with runs on hand sanitizer, food, PPE and even toilet paper. Restocking delays can be weeks or months. Can your operations accept a delay of this magnitude or a supplier who wouldn't pass a financial stress test?
There are several important things you should know about your supplier. If one or two of them are less than ideal, you should strongly consider either secondary suppliers or a complete change in supplier.
1) Does your supplier have lots of inventory?
This is important to gauge financial stability as well as product availability. Answering "yes" is not enough. If the supplier has invested in significant quantities of the products you need, then delays should be minimal. If not, or if they rely on "just in time" inventory, it could spell disaster. You might begin to experience delays, missed deliveries or inability to supply.
2) How much made-in-the-U.S. AR/FR does your supplier have?
Made-in-the-U.S. products offer reduced risks compared to imported products during the global supply chain crunch caused by COVID-19, because inventory replenishment is much faster and more secure. Congress has multiple bills pending to require U.S.-made PPE. Does your supplier have a large selection of products made in the U.S.? There are already significant delays and reduced production volumes from offshore AR/FR manufacturers; as the crisis lengthens, this will get worse.
3) Where does your supplier fit within the supply chain?
Many popular brands are sold through distributors. The brands will take care of their best customers first, so the largest distributors are at the top of the list for access when inventory is tight or items go out of stock. As supplies shrink and lead times increase, relying on a smaller supplier has already become risky. If you suddenly can't get AR/FR clothing, you could be putting worker safety and company projects at risk.
4) Does your supplier have multiple warehouses?
If so, are those warehouses in geographically diverse locations across the U.S.? If COVID-19 were to hit your supplier's warehouse staff (as we've seen in multiple industries), the warehouse may need to operate at reduced capacity or shut down. Redundancy is key; a provider with multiple large warehouses in widely different locations can still meet customer needs.
5) Has your supplier laid off, downsized or furloughed staff?
The pandemic and associated economic issues have had very unfortunate effects for large numbers of people. Staff reductions can have significant implications for both service levels today and the financial viability of your supplier moving forward. Can you get 100 percent of the service you need with 50, 60 or 70 percent of the staff? Will your supplier remain open and have the cash flow to maintain its inventory levels?
COVID-19 has dramatically affected many FR clothing suppliers' financial stability and global supply chains and will likely continue to do so for a year or more, which can impact your ability to get what you need. Take the time to review your supplier; an hour's investment now may save you major problems in the future, much like preventive maintenance is preferable to emergency repairs. If you have concerns about your supplier's ability to continue meeting your needs as the COVID-19 crisis goes on, it's time to either find backup suppliers or proactively switch to a more stable company.
Make sure your AR/FR clothing supplier is well positioned, financially stable and fully staffed, with a strong supply chain to provide your AR/FR clothing without interruption.
For more information, visit www.tyndaleusa.com, call (800) 356-3433 or email marketinginfo@tyndaleusa.com.
