In the wake of recent international events, the world market has been plagued with the issue of supply chain disruption.
This has been detrimental to many aspects of industry, as reliable systems of product and equipment distributions are necessary to keep the wheels turning. To confront this challenge, Harrington Hoists has taken the initiative across all departments to prepare for any negative effects this situation might incur.
"First and foremost, in our organization, we focus on supply chain transparency to greatly reduce 'surprises,'" said Harrington Supply Chain Manager Tara Williams. "It is our responsibility to talk, communicate, share and collaborate." Williams' department focuses on various aspects of this crisis: materials scarcity, increasing freight prices, demand forecasting, port congestion and changing customer attitudes.
The supply chain team is frequently and consistently vetting supply to ensure customer demands are met. Due to extended supplier and logistics lead times, the team has invested in increased safety stocks to avoid potential future stock shortfalls. It prioritizes non-impacted, extended supplier lead-time products to better service customers. As for the issue of freight prices, approximately 85 percent of Harrington's material is supplied by international suppliers, which have been greatly impacted by increased prices.
Regarding demand forecasting, Williams says the organization has been doing exceptionally well and has exceeded initial expectations. The supply chain team prioritizes the products it has greater control over and sets demand plans accordingly. To combat port congestion, the team has worked closely with both international suppliers and logistics brokers to circumvent congested ports where feasible. Continuous evaluation is conducted on import strategy, including extended lead times, routes and container loads.
Changing customer attitudes are dealt with by maintaining transparency, so as to avoid unexpected problems. The supply chain team talks to customers, communicates aptly and collaborates for effective solutions.
In Harrington's engineering department, Engineering Manager Drew Shoenberger said that Harrington has maintained a focus on eCommerce enhancements and expanding its product portfolio offerings digitally, to ensure all customers have the best experience. With its SmartLink tool, customers can easily access all their business needs, from ordering replacement parts, to configuring stand-alone units to even having the capability to configure complete crane systems. Customers also have the ability to use previous orders to place new duplicate orders and view invoices and account balances.
According to Shoenberger, Harrington has been able to remain competitive and increase market share through the following:
- Substitutions: Modifying how products are built. Flexibility is more important than finished goods. "Here is what we can't do, but here is what we can do" conversations.
- Design changes: Allowing for changes in materials and product designs/configurations to meet demand.
- Outsourcing: Increasing efforts for sourcing closer to each manufacturing location. Multiple vendors for products. "Buy where we build."
- In-house production: Increasing warehouse manufacturing "to help control our destiny."
Another department combatting supply chain challenges at Harrington is product development.
Jason Said, VP of business development, said that as customers take their own steps to combat supply chain problems by placing orders earlier than usual, Harrington is ensuring products are procured accordingly. He stated that a current goal in general is to remain flexible to customer needs. The team has been able to patch some of its vulnerable areas by ensuring top-notch communication practices and planning for the future - if the supply is needed in six months, then 12 to 18 months prior is when the product forecasting should occur, according to Said.
"Over the past 24 months, Harrington has experienced record quarters, month after month," Said stated. "With these proactive measures in place, we don't see any sign of that weakening."
For more information, visit harringtonhoists.com.
