As Global Supply Chains Continue To Stall, Let Us Help You Navigate During These Times

2020 was a year defined by pandemics, natural disasters, and an economic recession. Exceeding expectations, some companies not only survived, but found new ways to adapt and thrive during this time. As 2020 came to an end, most people were cautiously optimistic that a better year lay ahead. 2021 was supposed to be the year of the comeback! Instead, the global supply chain is strained and the price of everything from acetone to wooden pallets is on the rise. How did we get here?

Several factors have contributed to the current strain on our supply chains:

  • Demand for goods has increased as the economy begins to recover
  • Raw material shortages due to bad weather, reconfigured factories, and production stoppages
  • Site closures have caused suppliers to invoke ‘force majeure’
  • Limited transportation resources (trucks, drivers, boats/containers, Suez Canal blockage)
  • Transportation costs are on the rise as the price of oil continues to increase

While many companies last year pivoted to leaner inventories and ‘just in time’ purchases for short term stability, this strategy is not likely to succeed this year. Instead, companies should focus their efforts on:

  • Broadening their supplier networks
  • Choose reliable and adaptable transportation partners
  • Invest in knowledge and data to analyze trends and predict market fluctuations
  • Increase communication with your suppliers/distributors

At First Source Worldwide, we’ve been able to honor our commitments to our customers with:

  • Diligent planning/forecasting
  • Constant communication between our suppliers and customers
  • Maintaining reserves during supply strains/extended lead times
  • Offering our technical expertise to switch customers to more cost effective or readily available alternatives

By utilizing First Source Worldwide, you can have access to additional sourcing options, domestic and abroad. With multiple locations throughout the U.S., Mexico, and Central America, FSW is strategically positioned to access, route, and warehouse goods from multiple shipping points. If you are experiencing any delays, shortages, or obstacles with your current suppliers, consider First Source Worldwide as a potential partner to help you navigate during these times. Click the picture below to contact us!

By |April 23rd, 2021|Blog|0 Comments

About the Author:

Matthew Wojtkowski is a technical sales representative with Commerce Industrial Chemicals, a division of First Source Worldwide. Matt has been involved in colorants and chemical industries for almost 15 years. He has a passion for problem solving and helping customers with difficult projects. On weekends he enjoys music, cooking, the outdoors, and spending time with his family.