[NEXT LEVEL BLOG]

Introduction

The U.S. west coast ports handle over 60% of all import cargo coming into the United States. Throughout 2014, a number of different factors have escalated and resulted in disruptions to imports coming into the U.S. through these ports. 

As businesses reliant on importing through the west coast wrestle with uncertainty of transit times and delivery dates, the situation could worsen further. Supply chain disruptions could result in:

• Imports at sea being backed up offshore without access causing increased carrying costs
• Inventories being rapidly depleted
• Manufacturing facilities production disrupted due to lack of components
• Lost sales through a lack of goods

For businesses reliant on imports through the west coast, developing a robust risk mitigation strategy is imperative to navigate through these disruptions.

Recently we posted a blog that touched on the respective benefits of local versus global supply. We think it’s worth reiterating the benefits of each (separately and in combination) to an organization. As Supply Technologies sources many products from both global and local suppliers (billions of parts from more than 7,500 suppliers), we believe we have the expertise to know when a global supplier makes sense for a customer’s supply chain fulfillment, when a local supplier is more practical or beneficial, and when and how to blend the two for optimum supply chain performance and results.

When global industrial manufacturers start thinking about class “C” parts requirements, minds instantly go to unit cost. When using millions of fasteners spread between regional manufacturing centers, each responsible for with managing unit costs, production-line efficiencies and inventory costs, cost has to be right, and uninterrupted supply can’t ever be an afterthought.

Sourcing “C” class parts from low-cost providers inherently creates challenges with guaranteeing availability and quality. Without meeting quality expectations, low-cost supply ends up meaning nothing.