As consumers, most of what we want and need in our lives comes directly from the global supply chain. This process involves the supply of materials, manufacturing, a sophisticated logistics network and the retailers who sell the end product. The network comprises many different entities that work together to make sure that consumers are receiving their products in the timeframe that they expect.
Delivery delays are caused by many factors such as the pandemic, shifts in consumer buying patterns and shortages of labour in the trucking and warehouse industries. Today, these delays have caused a dramatic strain on every industry including DRYSYS, a leading-edge Australian manufacturer that designs, engineers, and builds industrial equipment. As long as these delays persist, the more likely it will be that the companies involved in the production, distribution, and movement of products will not absorb these costs, but instead pass these onto consumers.
The industrial batch oven market also slowed down due to the pandemic and the ongoing supply chain issues. Global supply chains often measure shipping times in weeks and months. These long lead times make it challenging to balance the supply and demand of raw materials required for manufacturing industrial batch ovens. With so many steps in the global supply chain and such large distances for goods to travel, there are many opportunities for things to go wrong. This is why breakages of raw materials have been reported time and time again.
Cash flow management has become a severe issue for many engineering firms during the pandemic. Once you factor in global logistics and supply chain management, cash flow management has become nothing short of complicated. Manufacturing businesses have to keep track and plan for a complex web of expenses like any accounting firm. With so many entities operating simultaneously, it’s hard to know where and when to allocate your resources.
Manufacturers are being pressured to keep up with the vast demand for high-quality and safe products. The number of product recalls is increasing daily and is having a drastic impact on the bottom line of industries globally.
The whole industry is faced with shorter product life cycles and changing market demands, which force them to embrace new strategies. When a streamlined environment is in place, supply strategies will support the operational plan. Finding a working and efficient solution is always more challenging than just coming up with an efficient concept, and as a result, working within the industry has become a challenging task for every stakeholder.
Industrial batch oven manufacturers have a long list of members within its supply chain. These include suppliers, distributors, logistics, clients, and customers who are spread across multiple countries, time zones, and continents, all requiring careful coordination and management. The additional stress on the modern day supply chain issues has created exponential complexity for upstream and downstream partners as well.
