May 22, 2024

Hydraulic Component Supply Chain Challenges and Solutions

The world of hydraulics keeps our industries moving, from powering construction equipment to operating complex machinery. However, recent disruptions have upset the smooth operation of hydraulic component supply chains. 

Delays, shortages, and rising costs are causing headaches for businesses everywhere. Learn how to increase customer satisfaction and maintain efficient operations amidst global supply chain disruptions.

Are we continuing to see disruptions?

Unfortunately, there’s no clear answer, with complexities increasing due to geopolitical tensions and trade corridor disruptions at the Panama and Suez Canals. We must continuously adjust and adapt our inventory strategies, balancing supply risks with high interest rates.

Are you seeing long lead times?

At PCI, we’ve witnessed logistics and vendor lead times beginning to see improvements. 

Vendors are increasingly aligning their delivery schedules closely to their confirmed dates, typically within a week. 

Overall, we’re seeing a positive shift towards more predictable and efficient supply chain operations.

Key Supply Chain Challenges

supply chain problems and solutions

You can break supply chain problems down into incoming and outgoing challenges.

  • Inbound challenges refer to external pressures and problems that impact the flow of materials and goods within the supply chain. These issues are typically beyond our direct control—they require strategic adjustments to lessen their effects.
  • Outbound challenges are the complexities involved in dispatching shipments from a facility to the end customer. Unlike incoming challenges that deal with receiving goods, outgoing challenges include the risks associated with transportation, including damage and loss.

Inbound Challenges Affecting Supply Chain Disruptions

COVID-19

The COVID-19 pandemic exposed significant vulnerabilities in the global supply chain, leading to disruptions in transportation, manufacturing, and the overall flow of goods. These challenges resulted in delays and increased costs, forcing companies to adapt quickly to maintain operations.

Capacity Constraints

Capacity constraints are a pressing issue due to the limited availability of:

  • Trucks
  • Chassis
  • Containers
  • Warehouse space 

These issues lead to congestion and extended lead times, significantly affecting the ability to move goods efficiently through the supply chain.

Strategies for Addressing Inbound Challenges

At PCI, we take a proactive approach to navigate these supply chain problems:

Partnering with Multiple Logistics Companies

We can keep our pricing competitive and lead times optimal by working with different logistics partners. This strategy can enhance your agility in response to supply chain disruptions.

Increasing Inventory

Maintaining higher inventory levels allows us to reduce backorders and lessen the impact of unforeseen demand spikes. By strategically increasing your inventory, you can ensure continuous supply and keep customers satisfied. 

Outbound Challenges Causing Supply Chain Problems

supply chain problems and solutions

Timely Pickup

One of our primary concerns is ensuring that the freight company picks up shipments within the promised timeframe, especially if they’re dispatched before the cut-off window. One way you can address this is by actively communicating with both the freight company and internal representatives to confirm same-day pick-ups.

At PCI, we use direct calls and emails to enhance coordination and accountability.

Maximize Your Shipping Options for Greater Customer Satisfaction

supply chain problems and solutions

Adopting Cost-Effective Shipping Options

We continually intensify our efforts to offer cost-effective shipping options and increase customer satisfaction. 

Research and experiment with different methods to make your shipping more affordable for your customers.

We reduced our shipping costs through negotiations and new partnerships that led to the following:

  • Upgraded packing materials and procedures that enhanced the protection and cost-efficiency of shipments
  • Increased shipping discounts that we pass on to customers for increased loyalty and satisfaction
  • More competitive freight quotes that give our customers the best possible shipping rates without compromising speed or quality of service

Continuously adapt and improve your strategies in response to supply chain disruptions. Doing so will help you exceed customer expectations.

Combat Supply Chain Problems with PCI

At PCI, we work with hydraulic component distributors nationwide to fill gaps in their inventory and help strengthen their customer relationships. We’re dedicated to helping our partners overcome supply chain problems through personalized support, globally sourced premium products, and same-day fulfillment.

If you’re ready to learn more about how we can help you, request a quote today. 

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