The coronavirus pandemic has uncovered what can be a fatal flaw of companies that have been overly reliant on one source of supply. Facing an interruption of any consequence from that single source, these companies are severely challenged to fill orders on a timely basis and overcome other major challenges such as trade tariffs and transport logistics. An April 2020 article from Industry Week noted, “Unfortunately, too many companies have done just that by selecting and doing business with the one supplier who quotes the lowest piece-price. Often this supplier is located in a low-wage overseas country, adding more variables and uncertainty to supply-chain management.” The only option to solving these issues going forward? Forge new supplier relationships…and as fast as possible.
Such is not the case with specialty manufacturer Minalex, who is well-versed and accustomed to dealing with fluctuations that can disrupt the supply chain. When challenges arise, Minalex responds with flexibility, agility and speed to troubleshoot any stage in the supply chain, whether it’s raw materials, finishing, assembly or anything else. Making this possible is an experienced team of expert problem-solvers and communicators who have deep knowledge of internal production capabilities, and external supply chain partners and resources. Another reference from the Industry Week piece mentioned above explains some of the reasons why niche manufacturers are more able to adapt to major disruptions like the one we’re currently experiencing: Contract manufacturers “… develop unique processes for the manufacture of one (or a family of) specific products. To financially protect themselves, such suppliers usually require both long-term agreements and substantial – often several months or more – commitment to production schedules.”
Going forward, companies involved in product manufacturing that will thrive in all kinds of market and economic conditions are those like Minalex, the ones already accustomed to working within complex, agile and highly diversified supply chains.
Experts predict that the manufacturing companies, which will best navigate the next major crisis, will be those that opt-in to smart technologies. These manufacturers promote supply chain transparency and collaboration, with the adoption of blockchain technology as one potential catalyst. As an April 2020 piece in Forbes explained, “Blockchain technology could create more proactive and more reliable supply chains because the technology gives its users not only a high degree of data visibility but also a belief in transaction accuracy.”