Many factories are struggling to keep up with demand. Supply chain bottlenecks are a big factor, including product shortages from overseas contract manufacturers, shipping delays and cost increases.
Semiconductor problems are acute. Demand has surged, but suppliers can’t keep up, so companies like auto manufacturers have been forced to cut production. German carmakers produced half as many cars in January as in November due to shortages. Toymakers are also struggling. With 85% of toys made in China, manufacturers are facing rising shipping costs and delays. The cost of moving a 40-foot container from China to West Coast ports rose from $2,500-$3,000 a year ago to $4,500 in March. In some cases, ships sit offshore at U.S. ports for weeks waiting to dock.
Common problems require uncommon solutions. MOSIMTEC’s supply chain simulations use cutting edge modeling tools, can help. Exploring new sources, ways to increase manufacturing/supplier capacity or reduce transportation cost/delays, and opportunities to improve processes at ports, can all benefit from a fresh look. Multiple options can be explored to increase production, cut cost, enhance fluidity, reduce risk or meet other goals. MOSIMTEC industrial engineers/data scientists can help.
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Read more here: https://www.wsj.com/articles/turbocharged-economy-leaves-factories-struggling-to-deliver-goods-that-shoppers-want-11615726803