How to Cut Costs in a Supply Chain Crisis

11 Jun

Be Ready and Resilient

Most of us realize that while we may not be in a supply chain crisis or shock yet, nevertheless we are facing a supply chain dilemma. A supply chain shock is defined as an unexpected event that disrupts the flow of goods and services within a supply chain, like a flood which we’ve experienced, an unexpected move done that too, pandemic or act of God affecting many. These disruptions can be sudden and dramatic, impacting the production, sale, or distribution of products. Supply shocks force prices to shift and correspond with market demand and value. For example, COVID-19 led to shortages of many basic essentials, from paper products to hand sanitizers and face masks. For us at Case Medical, the shock was the unexpected tariffs placed on metals, aluminum and stainless steel. Now, we are back in the same boat, only this time, we are ready.
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Preparation

In the case of a negative supply shock, where there's less supply of goods, increasing the supply through more efficient production or decreased demand through policy or procurement can help to quickly alleviate the problem.  This is where collaboration, pooling of resources and knowing and establishing relationships with local vendors can help during a supply chain shortage and to mitigate future ones. Remember, our products are locally sourced and manufactured directly under our roof. Another way to prepare is to stabilize the supply chain for critical items and use data analysis to procure what’s needed in advance to avoid a shock. Look at the past year’s orders and apply trend forecasting for the next year.

Trend Forecasting

We knew we needed to act quickly this year. We utilized trend forecasting, a process of predicting future trends by analyzing current and historical data.  We also tried to forecast what we could do from blanket orders. Please let us know your needs now before a supply crisis. Here are some strategies we used to be better prepared this time.
  • First, we stocked up a year ahead on metal, our critical supply, to avoid price fluctuations or worse, a lack of supply.
  • Then, we used technology to optimize routes to avoid shipping delays.
  • We improved warehouse operations to increase order fulfillment speed.
  • We partnered with Rutgers University Business  School to analyze the data we had to control production, manage inventory, and help us prepare for future needs.
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Resilience

Resilience means the ability to bounce back or recover quickly from difficult situations or challenges. One example is the feature of a rubber band that can be stretched and still return to its original shape. Resilient people can cope with tough events and keep going, both physically and mentally.  It's a skill you develop over time from the lessons and experiences you absorb as you grow up and face challenges. Boy, have we learned to be resilient over the past three decades. We know to plan to avoid unexpected events, to stock up on much needed supplies in advance of a shortage, and duplicate skills and equipment to avoid a crisis. As manufacturers having enough equipment may not be good enough, keeping a maintenance schedule and documenting it is as important as acquiring more equipment, although we’ve done that, too.  We’ve learned to withstand, adapt to, and recover from unexpected disruptions, ensuring continued delivery of essential services. It's about more than just having a business continuity plan; it's about embedding resilience into the design and operation of the entire organization. 

Our Gifts to You During a Supply Chain Dilemma

Case Medical supports sustainability, standardization and the values associated with the Total Cost of Ownership. Less is best standardize on our product to reduce inventory. You may already know about the many benefits of our certified cleaners and our universally compatible SteriTite containers to reduce duplication. Now to address your needs in a practical manner…We discontinued our 24 ounce bottles of Case Solutions and upgraded them to an improved more sustainable 34 ounces (1 liter) bottle at no additional cost. 30% more product for the same price. Our way of helping you not only be resilient but prepared. Contact a Case Medical representative to learn more.

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Want to learn more about supply chain resilience? Join us and the supply chain experts at the Rutgers University Annual Supply Chain Analytics Institute (SCAI) June 12 & 13th starting 8:30 AM EST. Click here to join the Webinar.

Visit us at www.casemed.com to learn more about our products and how they can help your facility.

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Kindest Regards,

Marcia Frieze and the Case Medical team
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