Supply Chain - As Strong As Its Links

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Giovanni Laporta of Smart Ready has written an open letter in which he says the whole supply chain is duty bound to look after one another so that connections are strengthened rather than undue strain added.

Smart Ready is a system that allows windows and doors to accept smart home technology. 

Laporta writes the industry has seen an enormous increase in sales over the last 9 months and I believe this places the industry in a strong position to welcome and embrace change as we continue into 2021. For that change to benefit the industry as a whole, we must widen our consideration to include the other businesses in the industry rather than focussing just on ourselves. The businesses that make up a supply chain are not singular entities, rather they are part of an ecosystem that supports and is supported by the other businesses above and below them.

Freighting components and raw materials into the UK from China and the Far East has gone up nearly 270%, and when sea freighting isn’t available, the price of air freighting is exorbitant. These panic-driven decisions are not sustainable. These supply issues are not permanent, and we will be able to go back to meeting our usual lead times at some point in the not-too-distant future. In the meantime, there is a quick fix that will ease the pressure we are all under: lengthening lead times across the industry.

Increasing lead times is a way that we as individual businesses can offer breathing space to both ourselves and the other businesses in the industry. If we extend delivery times, we would be avoiding the current “feast or famine” situation that we’re all in now. When materials arrive, there is a glut of fulfilled orders but when supply slows, businesses are back to not being able to deliver. This yo-yoing is frustrating for everyone in the supply chain and is especially exasperating for our ultimate customers who have been assured of delivery times and are bored with hearing about Covid-related delays.

The cost of buying raw materials from Asia is going to increase and it will inevitably be in a permanent way. We don’t need to hamstring the industry by overspending on the delivery of these goods at their current prices. Bring lead times up to two weeks (or longer) across the board and so that we all know where we stand without the stress of failing to meet deadlines.

I know we can, and will all get through this by working collectively and collaboratively, and that ultimately by doing this, our industry will come out stronger and more resilient.

Picture: Smart Ready's Giovanni Laporta.

Article written by Giovanni Laporta
17th February 2021

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