Supply chain disruptions happen periodically, but the challenges we’ve been facing over the past year are unlike any we’ve seen in the past. Increasing prices of raw materials, coupled with product scarcity and increased overall demand due to the pandemic, have placed stressors on the supply chain affecting every global industry. As we continue to navigate the obstacles thrown our way, we want to communicate up-to-date information on supply chain issues, what is causing them, and how we are adapting to reduce the impact on your business.
“‘I’ve never seen anything like this,’ said Larks Mikael Jensen, head of Global Ocean Network at A.P. Moller-Maersk, the world’s largest shipping company. “All the links in the supply chain are stretched. The ships, the trucks, the warehouses.” – The New York Times
Is your business experiencing any of the following supply chain disruptions? See how your partnership with CBT can help you overcome these challenges:
- Economic hockey stick – When the economy first came to a halt, we all held our breath in hopes of a quick recovery. What we didn’t realize was that the economy would come back so quickly and strongly that the supply chain just simply can’t keep up.
- CBT SOLUTION: Anticipating a strong comeback, CBT proactively invested in expanded product inventory in all three of our warehouses, allowing you easy access to the best products in the industry.
- Shipping delays causing reduced production and missed deadlines – An increase in e-commerce and limited availability of shipping containers has presented a global-wide shipping challenge. Any product sourced from overseas and shipped to the U.S. faces lead times double or quadruple the average speed. Due to the pandemic and subsequent safety protocols, companies are often limited to the number of employees working each shift, presenting productivity and efficiency challenges.
- CBT SOLUTION: Your partnership with CBT will enable us, and you, to stay on top of any lead time issues through regular communication between our in-house coordinator teams and our supplier network.
- Expanded in-house inventory to protect your business.
- Elevated raw material costs – raw material prices have been steadily increasing due to the pandemic slowing, and in some cases, ceasing, manufacturing, and production. Some manufacturers are implementing company-wide price increases to help offset the costs of the raw goods. Others are placing ordering limits on certain products until their availability increases.
- CBT SOLUTION: CBT will communicate these changes to keep you apprised of the industry changes. We are committed to providing the best solution for your business and can work with our wide variety of partners to find something that best suits your needs.
How long will these supply chain challenges last? Unfortunately we don’t know the exact timeline, and things could potentially get worse before they get better. CBT will do everything in our power to make sure there is as minimal impact on your business as possible. You can aid us in this effort by involving CBT as soon as possible on projects to stay ahead of supply chain issues.
We will continue to monitor the situation and keep you informed. We value and appreciate your business and know that we can work through these challenges together. Thank you for your patience and continued business through these uncertain times.
If you have any questions, please feel free to reach out to our team by phone or email.