Supply ChAIn SOluTIOnS
standard and bespoke parts in low and high volumes. We have heard a lot about upscaling during the pandemic in relation to, for example, the manufacture and rollout of ventilators and vaccines, which has seen specialist suppliers coming together to share expertise and create new solutions. Similarly, for industrial OEMs, a new, combined JIT/JIC supply chain model means partnering with local suppliers that have specialised sourcing capabilities for the provision of critical parts and materials, plus the ability to swiftly switch on and upscale manufacture locally in both low and high volumes. This new supply chain blend can not only protect businesses but add capabilities through the forging of new relationships and combined expertise. A good example of how these
relationships can strengthen the supply chain was the Ventilator Challenge. The consortium of OEMs that formed part of the Ventilator Challenge identified early on that a range of specialised seals and gaskets would be required. Orders were then placed with major suppliers that, despite the best of intentions, were unable to meet their initial commitments. This
was due to a combination of factors: these businesses were set up to service the MRO (maintenance, repair and overhaul market) rather than meet the volume needs of OEMs. These suppliers were not only over- reliant on extended supply chains, which left them unable to source quickly or in volume from local stocks, they also had no local or regional manufacturing capability that could be brought on stream at short notice. Because the ERIKS business model is based on a diversified supply chain it was able to supply the required seals and gaskets. ERIKS sourced, bagged, labelled and supplied 8,000 standard seals and O-rings in less than 24 hours and, using its capability to manufacture locally, ERIKS executed the tooling, moulding, post-cure and de-flash of specialised O-rings that would have otherwise required specialised materials and a long lead-time and delivered them virtually overnight. It is clear then that companies that have
robust, agile strategies for managing supply chain risk and business continuity are far better placed to respond to sudden
changes in demand or operating conditions. With diversified supply chains that reduce dependence on a small number of countries or suppliers, they can switch quickly between regions or suppliers of critical parts. And with local suppliers that have the ability to source and hold stocks of standard components, plus the capability to quickly upscale local manufacturing, they can swiftly deliver components and assemblies in both low and high volumes. In the coming months and years,
as COVID-19 hopefully becomes a progressively distant memory, these changes can significantly strengthen the supply chain and the businesses that depend on it. And even if we experience different kinds of global disruption – be it extreme weather, terrorism, political upheaval, tariff wars or cyber- attacks – a supply chain supported by JIC will be far more effective in protecting people and businesses.
ERIKS UK
eriks.co.uk
How tHE CovId
ExpERIEnCE Can HElp US StREngtHEn tHE SUpply CHaIn
FACTORy&hAnDlInGSOluTIOnS | SEpTEMBER 2021 33
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