Coronavirus and the Supply Chain Challenge

There’s no doubt about it: the coronavirus creates a difficult challenge in supply chain management, and not just for the moldmaking industry. So how do you handle if links in your supply chain have been weakened due to COVID-19?

You’ve hopefully already seen that MoldMaking Technology wants to help address mold builders’ immediate sourcing needs through our new Sourcing Assistance Program. But did you know we also have content that addresses implementing supply chain strategies in tough times?

From identifying bottlenecks, being available and quick to respond to orders, developing domestic value-chain relationship, and to companies and customers collaborating together, there’s a wealth of information in the articles below that just might help your business connect weak spots in your supply chain. Check them out and see what you can do to address this challenge.

Supply Chain Management: Strategic and Tactical Supply Chain Issues for the Toolmaker

There is a complete spectrum of possibilities and combinations in delivering or acquiring a set of tools for a new product roll-out. Sticking to domestic or in-house resources and capabilities will not be the answer in the future for every design and tool. On the other hand, turning over all designs and tools to a low-cost global provider, such as China or Eastern Europe, is not the answer.

How can your tooling project take advantage of the best combination of resources and capabilities — regardless of location — in the future? Your customers will be reading the quotes and marketing hype with which we opened this article. They are aware of the growing competency overseas. They may be tempted to turn over their new product tooling in total to an overseas source. So how should you structure your programs to take advantage of the most optimal set of resources and capabilities?

Improve Profitability with Supplier Collaboration

Being “first to market” is a common goal for manufacturers in this industry, but the reality may actually be quite different when there is ineffective supply chain management. For example, brand owners often are extremely successful in finding design firms that can come up with very creative packaging, but applying that design to an actual product proves difficult when the design cannot be molded. This is a supply-chain management challenge.

The opportunity for mold manufacturers lies in developing a supply chain that maximizes success in the marketplace by avoiding mistakes with upfront collaboration, averting costly backlogs, aligning manufacturing capacities with growing demand, and ensuring that raw materials and products from supply-chain partners are delivering value.

Keeping Up with ISO: Minimize Risk in Value-Chain Partnerships

To fully understand the true cost of this domestic value-chain relationship, OEMs must consider the differences between the price of a product and the cost of manufacturing it, outsourcing and in-house production, and working with a supplier and a true development partner. ISO helps determine this true cost by calculating total cost of ownership (TCO), a financial estimate intended to help buyers and owners determine both the direct and indirect costs of a product or system.

And Don’t Forget!

MoldMaking Technology magazine is always available to you as a resource if your business or supply chain has been or will be affected by COVID-19. Various shops have reached out to us asking how they can be connected with manufacturers looking for North American mold builders to keep manufacturing moving. At the same time, OEMs have also reached out looking for mold builders and molders to take on some projects.

We want to be a resource that connects the supply chain – manufacturers (OEMs) looking for service suppliers and service suppliers (mold builders and molders) with capacity and capabilities looking to take on more work. If you are Seeking Sourcing Solutions in Challenging Times, find out how MMT can help now!