FEATURE Supply chain
Supply chain resiliency - a key objective in challenging times
Supply chain resiliency - a key objective in challenging times
By Scott Sutcliffe, Group Purchasing Director at McBride, a European manufacturer and supplier of private label and customised cleaning products
T
he last 18-24 months have seen some seismic challenges to global supply chains. From a scarcity of ocean freight, a proliferation of force
majeures and a blocked Suez Canal, we have recently experienced the unprecedented. As a result, procurement strategies have become a growing area of focus for many businesses, supply chains can be relied on. As a manufacturer of cleaning products, volumes. It’s easy to assume that, as demand for example the recent downturn we have witnessed in the automotive and construction industry, this would lead to surplus capacities of materials and feedstocks. In fact, the opposite is and demand trend emerge at the end of 2022. chemical capacity utilisation is down around 25% compared to the average rates of the past 25 years. Chemical suppliers are therefore working hard to actively manage capacities and provide a stable and predictable price level for customers.
In this changing supply and demand landscape how should manufacturers implement reliable strategies to ensure supply chain resilience?
Sourcing strategies of everyday household cleaning products, McBride is currently seeing volumes growing in excess of 10% year on year, as consumers seek branded products. This increase in demand presents several challenges. Naturally there is the continuous optimisation of our production processes to meet consumer demand and maintaining inventory at the correct level, but this must always be balanced against the challenges of material sourcing. To mitigate for these risks, our purchasing supply chain resilience, developing methodologies to help anticipate, prepare for,
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respond to and recover from disruptions and market uncertainties.
The team has worked closely with the
research and development and operations departments to reduce reliance on single- sourced materials. It has also implemented strength of supplier relationships, geographic risk management across our entire portfolio. Risk – quite rightly – is becoming a critical factor in buyers’ decision making. Our teams work closely with our legal department to ensure that we have an appropriate level of contract cover in place, which then allows us to hold our suppliers accountable. Moreover, of the supply chain where there is an increased likelihood of disruption – and develop strategies for risk mitigation.
Supply and demand Keeping production lines running is one thing, but ensuring timely distribution of products to our customers’ shelves is another. We have worked closely with the group logistics team to ensure that the right agreements are in place with the right hauliers, with the right performance measures, to service our customers’ growing needs. This focus has seen a real step change in reliability in the last 18 months and has delivered a more solid logistics platform to handle the increased volumes we are seeing.
As we head into 2024 the job is far from correct level of continued focus across in-bound and out-bound supply chains to ensure that McBride remains the supplier of choice for our customers and their consumers.
Supply Chain Logistics
Supply Chain Logistics
Tracking racking
Traceabiliaceabilityty
More than 20,000 sensors. Factory Automation. Process Automation. Hazardous Areas. Harsh Environments. Measurement & Inspection. LED Lighting. Vision Systems. Machine Safety. Vehicle Detection. Flow, Temperature Pressure & Vibration.
Turck Banner Ltd. Blenheim House, Blenheim Court, Wickford, Essex, SS11 8YT
Tel: 01268 578888
more@turckbanner.co.uk www.turckbanner.co.uk
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