{"id":938,"date":"2021-12-02T15:50:03","date_gmt":"2021-12-02T20:50:03","guid":{"rendered":"https:\/\/myrna.com\/blog\/?p=938"},"modified":"2021-12-02T15:50:03","modified_gmt":"2021-12-02T20:50:03","slug":"supply-chain-strategies","status":"publish","type":"post","link":"https:\/\/myrna.com\/blog\/supply-chain-strategies\/","title":{"rendered":"Supply Chain Strategies"},"content":{"rendered":"\n

Supply Chain Strategies:<\/strong> In 2022 we expect many items to be on allocation and\/or have delivery dates and quantity to be randomly and suddenly changed. Many items, not just computer chips<\/em>.<\/p>\n\n\n\n

During their annual strategic planning meeting, Perfect Plastic<\/a> outlined their eight-point strategy for dealing with supply chain disruption:<\/p>\n\n\n\n

1.       Maintain exceptional communication with customers:<\/strong><\/p>\n\n\n\n

1st to sustain trust. There is a lot of noise that this is all a conspiracy to raise prices. We must be ready to answer why<\/em><\/strong>?<\/p>\n\n\n\n

2nd to keep customers informed in real-time to give them the most time to react and adjust.<\/p>\n\n\n\n

3rd to coach customers to develop a plan B, and plan C for when their plan A is impacted. Constantly reminding them how important it is to supply accurate, timely forecasts to enable their vendors to order early enough to meet their needs.<\/p>\n\n\n\n

2.       Maintain an even higher level of communication and cooperation within the company:<\/strong><\/p>\n\n\n\n

Disruptions affect every department. Maintain exceptional communications with your “internal customers”<\/p>\n\n\n\n

3.       Manage vendor relationships.<\/strong> Be very strategic in second sourcing vs. consolidating sources. If you are a small customer, the vendor with limited product is unlikely to accept your order over one from a major customer. (In today\u2019s environment, having multiple suppliers for a critical part may result in never getting your orders fulfilled. Major customers receive the largest allocations.)<\/p>\n\n\n\n

4.       Increase inventory.<\/strong> Amazon.com can no longer deliver everything in 1-2 days even when they promised to. JIT inventory management is not ideal in an environment where delivery cycles are unpredictable.<\/p>\n\n\n\n

5.       Develop alternative ways to produce the final product<\/strong> as various components become unavailable. Anticipate shortages. Have plan B, C, and D proven and ready to go.<\/p>\n\n\n\n

6.       Increase prices to reflect the higher cost of doing business<\/strong>. Timely, reasonable, and well communicated.<\/p>\n\n\n\n

7.       Optimize the product mix<\/strong>, your vendors are. Smart phone chips are more profitable than automotive chips, but both consume the same amount of foundry capacity. With a finite foundry capacity, vendors are prioritizing production of the most profitable chip. When your production is constrained by a component availability, which product mix using that component makes the most sense?<\/p>\n\n\n\n

8.       When pricing consider opportunity cost<\/strong>. Consider, if you could only provide 80% of a customer\u2019s requirement due to vendor allocations of his specific chip but the customer would be willing to fill the other 20% with a cheaper product. Your price to them for the cheaper product should reflect the loss of profit from using up capacity that would have been reserved for high margin product.<\/p>\n\n\n\n

At all costs retain the trust of your customers, vendors, and employees<\/strong>. Reinforce the behaviors that communicate your character, your competence, and your caring<\/em><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Supply Chain Strategies: In 2022 we expect many items to be on allocation and\/or have delivery dates and quantity to be randomly and suddenly changed. Many items, not just computer chips. During their annual strategic planning meeting, Perfect Plastic outlined their eight-point strategy for … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[71,70],"class_list":["post-938","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-strategic-management","tag-supply-chain-strategies"],"_links":{"self":[{"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/posts\/938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/comments?post=938"}],"version-history":[{"count":1,"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/posts\/938\/revisions"}],"predecessor-version":[{"id":939,"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/posts\/938\/revisions\/939"}],"wp:attachment":[{"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/media?parent=938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/categories?post=938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myrna.com\/blog\/wp-json\/wp\/v2\/tags?post=938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}