B2B manufacturing plays a significant role in the B2B world. This is because so many businesses rely on others for producing their goods, or perhaps at least components of those goods. Or, even more realistically, businesses likely rely on multiple B2B manufacturing partners to get the parts they need.
And this is common regardless of industry. However, consider such industries as automobile or aerospace, in which many different parts are required for a single product. From metals to fabrics to digital technology, there are many different B2B manufacturing partners that can play a role in a single business’ effort to create a single product.
And while businesses are reliant on their B2B manufacturing company counterparts, what happens when supply chain disruptions intervene? After all, B2B manufacturing companies are not resistant to the realities of global supply chain networks, and disruptions impacting a specific material or product could have significant ramifications for many businesses. And many of these ramifications might not be foreseen until the disruption is already causing problems or setbacks.
It is difficult to plan for a supply chain disruption that might hinder standard B2B manufacturing business ideas or workflows, but being aware of these disruptions—or rather, understanding how they can impact B2B manufacturing—is a way for you to keep your business focus and strategy moving forward.
There is not a single reason for supply chain disruptions, as delays in products, materials, or shipping can happen for many reasons. The world’s supply chain is not resistant to the realities of the environment or the demand of individuals. For example, when the COVID-19 pandemic first hit the global stage, supermarkets and smaller grocery stores suddenly found they couldn’t keep various supplies stocked, such as toilet paper and general household cleaning products.
This shortage was simply due to an unforeseen phenomenon of demand that could not so easily be avoided or prevented. On a general level, you might think the answer is for the world’s B2B manufacturing companies to simply produce more of these products, but even these companies rely on other companies for materials, whether these items are paper products, plastics, sanitizing chemicals, or any other number of items that are in need.
And further, this is not the need of just one store or company, but many. And this results in the majority of B2B manufacturing companies that specialize in these products being leaned on even harder than they are normally used to, or plan for. When demand reaches such a significant and unplanned-for new level, resources and materials cannot meet the demand equally.
But global pandemics resulting in unforeseen consumer demands is not the only variable when it comes to offsetting the global supply chain. Another common example of B2B manufacturing disruptions as the result of supply chain interruptions are trade wars that companies or governments place on imports or exports. These often come in the form of taxes, or tariffs, but they can often place the burden on the B2B manufacturing companies more than anyone.
For example, a U.S.-based company might rely on a Chinese B2B manufacturing company for particular parts, or even an entire product. Business might be steady and smooth for years, but social or economic policy might cause new taxes to be implemented, now making these parts more expensive and causing an upset in the B2B manufacturing marketplace.
In some of these instances, some scenarios are more easily avoidable than others, or rather, a solution can be found to keep the B2B manufacturing marketplace operational and fluid. However, other instances, such as material shortages or unforeseen consumer demand, can cause more significant delays that can be more difficult for B2B manufacturering companies to navigate.
The B2B manufacturing marketplace does not operate on an A to B supply chain, but is composed of many steps and players. From manufacturing to transportation to legal restrictions to all sorts of other considerations, there are many factors at play in the global supply chain. And while a single disruption might seem like it is easy to avoid, it can lead to other disruptions and problems that were not not planned for, and that are not as simple to avert.
The bottom line when it comes to navigating the supply chain and doing what is best for your company is knowing that the B2B manufacturing marketplace is fragile, and your planning and operational efforts need to be well thought through. However, this doesn’t mean you are alone in these efforts.
In fact, there are resources that companies can turn to in the face of supply chain disruptions, but also in general to stay in control of their B2B manufacturing efforts, from B2B manufacturing business ideas to B2B manufacturing marketing strategies.
RCO Engineering understands the nuances of supply chain interruptions as well as the practical approaches to B2B manufacturing business ideas. Whether you are a high volume manufacturing company or you specialize in low volume output, RCO Engineering has the experience and resources to help you make the best of your efforts. Work with us today!