How Supply Chain Management (SCM) Been Impacted by the Shortage Economy
There has been no escaping supply chain disruptions. Manufacturers across the globe experienced a new set of challenges due labor and supply shortages.
Andrew Shoppa, a supply chain management expert, stated–that before the COVID pandemic, HNI Corporation was consistently operating around a 99% complete on-time rate for shipments from suppliers. During the organization’s lowest point in the shortage economy, they were operating at a rate of 78%, which greatly affected their ability to perform for their customers.
However, HNI was not alone, other manufacturing leaders have experienced supply chain delays which have negatively impacted their on-time customer deliveries.
Gordon Van Champ, a seasoned supply chain leader from Chamberlain Group, found that many of their sourcing issues could be traced back to overwhelmed ports. Chamberlain had not diversified their sourcing, which put additional pressure on individual suppliers who were already overflowing with orders.