In supply chain operations, Lindsay Smith is a veteran in the manufacturing industry. He saw situations where missing parts made manufacturers take extreme measures to continue production, even if it was expensive. He provides cautionary tales that SourceDay strives to prevent with its innovative supplier collaboration solution.
In this video, Smith recounts two examples where missing parts disrupted production schedules.
In the first scenario, Smith explains how Ford had to park 100,000 F-150s because of a lack of integrated circuits. Ford faced the decision to shut down the factory and send hundreds of workers home or to build incomplete products. Smith states that the common manufacturer mantra is: “Never start a job in manufacturing until you have all the parts.” With either choice, the company lost ground and would suffer financially from lost income and extra costs to fix the problem.
Smith gives another example of a global supply shortage caused by an explosion at a polymer plant in Germany. The plant had to close until they finished an investigation. When the factory was disabled, Ford, as Smith puts it, “had the audacity” to buy the entire remaining supply. This made it impossible for smaller buyers such as Boston Scientific to get what they needed.
Manufacturers changed how they handle supply chains to avoid running out of crucial parts for production after these incidents. SourceDay’s solution addresses this issue.
SourceDay’s Unique Approach to Strengthening Supplier Collaboration
SourceDay revolutionizes supply management by proactively addressing and averting potential disruptions. Here’s how we achieve it:
- Dynamic Collaboration: SourceDay facilitates dynamic collaboration between manufacturers and suppliers, ensuring seamless access to real-time updates on orders, deliveries, and potential disruptions.
- Streamlined PO Management: Our workflows help automate PO management and simplify the procurement process, eliminating manual errors and minimizing the risk of component shortages.
- Exception Handling: Our platform boasts a robust exception handling system that promptly notifies teams of supply chain gaps, enabling swift corrective measures.
- Supplier Performance Insights: SourceDay’s analytical tools offer valuable insights using supplier performance scorecards, visibility into price point variance, move-ins and outs, and more-empowering companies to identify and rectify potential weaknesses before they become disruptions.
- Seamless Integration: SourceDay offers bi-directional integration with any ERP system. This means we not only pull PO data to enable seamless collaboration with your suppliers but also ensure that only accurate PO data is pushed back into your ERP. The result is a significant positive impact on inventory accuracy, production schedules, and material planning.
Effective Supply Management Is No Longer a Want, but a Need
In a world where supply chain issues can cause significant problems, SourceDay’s supply management strategies are crucial. Smith’s ideas show us that manufacturing and supply chain management always face problems like parts shortages and disruptions.
SourceDay empowers businesses to navigate these challenges effectively, with real-time demand forecasting, supplier collaboration, risk management, supplier diversification, and streamlined procurement. With these strategies in place, companies can ensure inbound supply assurance even when the unexpected arises!
We help businesses improve their supply chains, become more resilient, and stay competitive in a tough market. As the supply chain landscape continues to evolve, SourceDay stands as a beacon of innovation, providing companies with the tools they need to not just survive — but to thrive — in challenging times.
Protect your supply chain with SourceDay Contact us today to start.