Tips for Mitigating Supply Chain Constraints

The challenge with 2021 will be the variety of drivers of materials constraints. Unlike previous years, constraints aren’t being driven by demand changes in a single industry or region. Different drivers will be impacting different commodities throughout the year. The team at Burton Industries has the supply chain management expertise, systems and engineering support necessary to help navigate these challenges. That said, mitigating supply chain constraints requires a coordinated effort from both Burton’s team and its customers’ teams.

At a minimum, we ask all our volume production customers to give 26+ weeks of commitments based on component lead-times.  A rolling 12-month forecast is preferred. We modify that expectation for customers with legacy products that are built on an as needed or a few times a year basis.

Here are a few tips to further mitigate material availability/supply chain disruption issues:

  • Put Burton Industries’ design team in the design cycle from a Bill of Materials (BOM) standpoint as early as possible. We offer a free BOM scrub service to existing customers to help them assess risk in critical to design components.
  • Avoid single source parts or those with limited sources—our team can help you identify alternates.
  • If a part has been labelled not recommended for new product use, it should also be avoided as its obsolescence risk is high.

Our supply chain team is reviewing a weekly constraint report to ensure fast action as conditions change. When new constraints are identified, purchasing, program management and engineering review options for alternate suppliers and/or equivalent substitutions and inform customers of the available options for addressing the issue. Watch our blog for further updates on trends and the tools we are using to address availability issues and/or pricing increases.

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