Two things have become apparent since COVID-19 emerged over 4 years ago:
- Customers expect lead times to remain at their pre-COVID levels
- Not all suppliers can achieve this
Here at Mokon, we continue to work to reduce our lead times while strategically dealing with the long lead times of custom parts. We are using three major supply chain strategies to conquer long-lead times.
The first strategy we are using is to build useful inventory. Too often during the pandemic, supply chain managers would see parts available and buy them to have them. Two years later, they found that those parts had become slow-moving or even obsolete. A built-to-have strategy only works if you understand your annual usage and can anticipate potential spikes or declines in sales. Based on our own analyses, we at Mokon were able to determine what we needed to keep on the shelf and then made the purchases that would eliminate significant lead time barriers. This allows us to ship water and oil units faster than our supply chain.
Our second strategy is qualifying additional suppliers and using brokers when needed. In 2020, buyers learned the importance of brokers and substitution. We have employed both options to ensure that we can get parts when needed. By bringing additional supply sources into our network, we can reduce risk and increase on-time delivery.
A final strategy being employed by Mokon is stocking units and maintenance supplies. Beginning in July, Mokon will be stocking base water units that can be shipped within 48 hours. The units will be built and ready for testing upon order. This will help us to service customers who need a unit immediately.
Even four years after the pandemic, supply chain challenges remain. Creating strategies to avoid these delays is allowing Mokon to steam into the future as the TCU leader.