Are you as sick of hearing about “supply chain delays” as we are? It seems like there is no end in sight, just when things start to ease up, something else manages to slow it all back down again. Everything seems volatile but there are a few things we’re noticing in the market that are worth sharing.

What to be prepared for:

It is no secret, price increases are happening. You’re feeling it, there is no way around it and its a trickle effect. Unfortunately, it is not going anywhere; in fact, we are predicting that suppliers are setting the prices as the new bar; we do not foresee them going back down once the recession and economy improve.

Increased delays in customs. No matter how much due diligence you do to help ensure a quick and smooth customs inspection, it is overloaded so delays can be expected.

Lead times are also increasing. It’s bad enough that the prices are going up and international shipments are taking longer to get through customs, but now, for products to take longer to make…triple whammy. This boils down to the ability to get the proper components and supplies in the the door to manufacture the product, and sufficient staffing.

It is not all doom & gloom, we keep seeing glimmers of certain materials and components making a turn-around, where prices aren’t so high and/or lead times are manageable. As a supplier keeping a close eye on the market, there are things we are doing to stay ahead of things as much as possible.

What are we doing at Xymox to help reduce the pain for our customers?

Although we don’t have a magic wand we can wave and make it all better, there are things we are doing to take some extra stress off our manufacturing floor as well as our customers:

  • Purchasing higher quantities of supplies when the lead times are extra long and/or to get price reductions.
  • Qualified a medical certified, USA based, PCB supplier to not only diversify our supply chain but also reduce cost and international shipping delays.
  • Made changes to our scheduling to free up manufacturing capacity to allow for quick turn orders.

One thing to be mindful of:

Chinese New Year, it falls on January 22, 2023. Consider that now, how will that timeline affect you? Looking forward and adjusting for this known, annual, supply chain delay can save a lot of time and frustration.

We’re hearing from our customers that diversifying their supply chain has made a huge impact. While qualifying a new supplier does cost time and money, when a company relies on only one supplier for a certain product, they are subject to the price and lead time of that one supplier, with no other options or fall back when something goes awry.

Price, lead time, and quality can change drastically from supplier to supplier, it is critical to do your due diligence to avoid problematic vendors. Check out our checklist on 10 Things to Look for in a Supplier, and this blog post on How to Know if a Supplier is Financially Stable.