Global supply chains are under extreme stress

Author: Certified Machinery |

Global Supply Chains Are Under Extreme Stress - Blog by Certified Machinery

Supply chain challenges surround us with acute raw material shortages, creeping inflation, and labor struggles. COVID has also played a big part: during the first half of 2020, demand for most goods dropped as economies worldwide went into lockdown. Sailings by ocean carriers were canceled, manufacturing capacity was cut, and workers everywhere were displaced.

The result has created shortages of key manufacturing components, order backlogs, delivery delays, and a spike in transportation costs and consumer prices. From a logistics perspective, restarting the manufacturing machine after the lockdown turned out to be quite difficult. The complex system that moves raw materials and finished products around the globe requires predictability and precision. Both had been lost.

A shortage of shipping containers emerged, shipping rates for certain routes skyrocketed, and congestion developed at international ports. This eventually spread to railroads and inland rail terminals, exasperating the trucking and chassis shortage that was already problematic. U.S. importers experienced delays in receiving key manufacturing components and exporters faced challenges accessing containers and getting bookings on shipping vessels. The chain had broken.

Moody's said the "weakest link" may be the shortage of truck drivers — an issue that has contributed to congestion at ports around the world. Unfortunately, Moody's warned there are "dark clouds ahead" because several factors make overcoming the supply constraints particularly challenging.

How should businesses plan for these supply chain challenges? Order items early and plan ahead to avoid shortages. Surviving a supply chain disruption means making sure you still have suppliers and a steady flow of parts and materials. At Certified Machinery we are prepared to work with you in providing you with continuity. With all the challenges we have faced, including many listed above, we have been able to maintain a substantial inventory of equipment including labelers, fillers, check weighers, metal detectors, induction sealers, and many other items.

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By phone: (609) 912-0300