Shortage & disruption in the logistics industry
Finally coming to the forefront of the news cycle as millions of people learn about, laugh at, and meme the Ever Given situation in the Suez Canal. It’s rare that our business is the national buzz, but this gives us the perfect opportunity to discuss the real costs and issues suppliers and manufacturers are facing with the current congestion plaguing ports around the world. In no industry is this more evident than auto parts, most specifically semiconductors.
The issues began at the start of 2020 and can best be described as follows:
Covid leads to blanked sailings, blanked sailings lead to reduced capacity, reduced capacity leads to increased rates, increased rates lead to equipment imbalances, equipment imbalances lead to delays, delays lead to service failures, and service failures lead to shutdowns as plants can’t operate without parts. In a way it’s a very confusing game of Rock Paper Scissors where everything is a rock, falling on your head, and you have a piece of paper to protect yourself. In a word? It’s bad.
Unless you’re working with Mach 1 on those shipments.
We’ve already put in the footwork that others are scrambling to set up and we’re ready to work on your shipping plan and help you first fix the lean manufacturing shortage issues that are causing the parts scarcity and second work to ensure the flow of goods to your customers is unimpeded by disruption others face.
Because most auto plants work on a Just In Time inventory schedule that keeps inventory levels lean and parts arriving just in time for production any slips in the supply chain can cause a shortage through assembly lines to come to a halt and shut down while workers wait. This is the current issue facing auto manufacturing after the pandemic. Because manufacturers canceled early orders for semiconductors and a fire at a semiconductor plant in Japan increased lead time, there are some manufacturers who are now on a revolving downtime schedule in order to maintain employment levels, reduce output, and be ready to ramp up production when the semiconductors are again flowing in a timely manner.
Mach 1 Understands
There are a number of issues, weather, acts of God, etc., that are out of our control, but one thing we can always control is the preparation we put into solutions we offer to keep your cargo moving. Because we’re staffed with experts who have years of automotive experience, we uniquely understand that your parts have lasting manufacturing impacts on the entire supply and the health of a massive workforce. With supply constraints and a surge in orders coming, you need a team that understands that the issues with longer border crossings, port congestion, and transportation equipment imbalances are all part of a difficult puzzle that needs an experienced hand to manage.
Mach 1 offers you that hand to give you a leg up on your competition. We can’t promise that every situation will be solved before our customers know there’s trouble coming, but we can mitigate impacts to only happen in the short term and work to provide solutions for short, long and mid-term issues that we see on the horizon. We keep your engines and supply chains running. If you want to see how we’re driving efficiency and lean inventory strategies, reach out to your Mach 1 representative today!
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