One of the key things that influence the success of your manufacturing company is access to necessary supplies. Although a business owner focusing on improving the business model could positively affect the company’s productivity, there is always something in the supply chain that needs improving for the business owner to enhance possibilities.
What are the challenges facing global supply chains?
Every business, regardless of industry, faces supply chain issues that interfere with business operations, thus hindering the availability of goods and services to potential consumers. The following are the most significant factors influencing global supply chains:
- Labor shortages
Many manufacturing industries, including injection molding, depend on labor. Although plastic processing is an industry that involves machinery use, a workforce needs to operate relevant machines to implement production. Therefore, any labor shortages would cause significant effects on the supply chain.
Complex injection molding machines require specific offloading from ports. The Covid-19 pandemic is the most recent challenge affecting supply chains across different industries, not excluding plastic processing, specifically injection molding. Legislators implemented curfews and lockdowns, hindering people from going to work. This factor is the cause of backlog at ports because more shops arrived at the port awaiting offloading. However, there was not enough workforce to offload.
- Equipment availability
Injection molding is a process that leverages complex machinery that requires specific production. For this reason, any complications affecting the manufacturing of this equipment will affect the supply chain. For example, China exports plastic. The Covid-19 pandemic affected China, where legislators in different countries implemented restrictions preventing entry of China products.
The result of restrictive measures against entry of foreign arrivals into the country affected the availability of plastic, a raw injection molding material. This legislative agenda significantly affected how companies sourced injection molding material, thus hindering production.
- Ripple effects of global battles
Just as the world began to experience relief from the Covid-19 pandemic, another crisis started. The war in Ukraine has affected the movement of goods across the globe. The resulting supply chain delays and shortages have come up differently throughout all industries.
What should public sector decision-makers do to enhance the efficacy of global supply chains?
Relevant parties, injection molding business owners and legislators, should appreciate that changes in law can affect business operations, specifically the supply chain, thus affecting the profitability of an industry. For example, during the Covid-19 pandemic, legislators placed trade restrictions on goods coming from China. This trade regulation affected the availability of equipment and raw materials necessary for promoting the supply chain. Policymakers should remember to incorporate trade regulations alternatives to eliminate supply chain delays.
Legislators should also develop flexible export regulations that do not encourage limitations in the supply chain. During the Covid-19 pandemic, many countries reported traffic jams in large vehicles carrying export goods into neighboring countries. Legislators should develop effective transport systems that do not encourage traffic delays.
Legislators should collaborate with relevant manufacturing partners who understand business owners’ issues hindering production. Collaboration is the best way to create awareness on pressing supply chain issues and thus promote effective legislative solutions.
How are companies navigating a climate of persistent unpredictability?
There is not much that companies can do to control supply chain interruptions because these events are usually unpredictable. However, the best way to stay updated with the current interactions affecting lead times and delays is to collaborate with a reliable injection molding partner. Injection molding company owners should understand that the only way to make a significant change in the supply chain is to take collaborative steps.
An injection molding business owner’s best partner is a reliable US-based injection molding manufacturer who can predict future supply chain issues. However, determining future supply chain hindrances is not the best way your injection molding partner will help your company. The right partner implements different strategies to minimize companies’ risks during a global crisis.
Another reason to choose the proper injection molding manufacturer is the advocacy they provide. Trusting a partner active in the legislative process encourages the implementation of better regulations that promote a seamless supply chain, limiting any hindrances in production. However, company owners also have the role of creating awareness on supply issues affecting them so that their partners advocate for change.