One of the biggest frustrations in all industries is long lead times. Manufacturers, suppliers, distributors, and the end customer all feel the strain when components and materials take longer than desired to be delivered. The consequences of long lead times are much more than just annoyance. Delays in the supply chain can cost companies a lot of money in delayed product launches and customer dissatisfaction.

Every supply chain has complexities and relies on numerous parties delivering on time to make everything run smoothly. Many factors can contribute to a long lead time. While some are unavoidable, there are many that we can keep within our control to mitigate risk and ultimately avoid disappointment. 

In this blog, we will explore some of the main causes of long lead times and what we at Tencell can do to assist.

  Increased demand for raw materials

The ever-evolving world of technology can play havoc with the demand for raw materials. It is frequently the case that a previously readily available component quickly becomes difficult to source because of technological advances. The technology industry moves so fast that it can be difficult to predict too far out. Demand can outstrip supply very quickly.

In such instances, we advise customers to plan and place orders as far out as possible; this means accurate forecasting and providing as much sales data and analysis as possible. Doing this will make you better positioned to future-proof your product and have enough inventory to meet product demands. We also encourage our customers to be aware of suitable alternative components or brands we could source if necessary.

At Tencell, we can place future orders with reputable suppliers and manage your inventory process. We always work to balance getting the best price and the required delivery date. Regular delivery meetings with our customers allow us to react quickly to changes in your delivery schedule and respond promptly to unforeseen supply changes.

  Shipping Delays

Shipping delays are among the most unpredictable and difficult-to-manage causes of a long lead time. The transportation sector is the one that ties everything together – the goods can be ready to ship on time, but delays with the transport, be it by sea, air, rail, or road, are often impossible to predict.

It is not only the physical delay of the vessel, plane, train, or vehicle which causes setbacks. Congested ports have been disrupting shipping schedules for months. Ships will frequently arrive at the port on time, but delays occur when trying to offload the cargo, adding days or weeks to the end delivery date.

Hangovers from the COVID-19 Pandemic cause many of the delays experienced at ports and airports. For example, with regards to sea freight, container shortages mean the cost of getting goods onto a vessel may increase unless you are willing to wait, fewer dock workers mean the time taken to unload containers will increase, driver shortages mean that goods often must be held securely at the port for longer than anticipated.

We mustn’t forget, of course, how the unpredictability of the weather can significantly impact delivery schedules. Adverse weather conditions, such as high winds, fog, leaves on the track, and stormy seas, can delay deliveries by several days.

While things such as the weather are out of everyone’s control, here at Tencell, we will always be transparent by giving our customers the most up-to-date and accurate information regarding the delivery of their goods. We will always work to your required delivery dates, and we can turn shipments around very quickly to minimize additional delays once the stock has reached us.

  Poor Inventory Management

So often, companies leave it too late to place orders and can be surprised when lead times are longer than desired. Inventory management covers purchasing, production, sales, reporting, and inventory control. Often managed by different people within a company, these areas are all hugely important when operating a successful company. They need to have clear lines of communication between them to achieve success.

Considering all the other elements that can adversely affect the supply chain lead times, this area is well within a company’s control. It may require some adjustments and changes to working methods, but the ability to successfully manage a company’s inventory lies within.

With experience in working with customers to manage inventory, we are proactive when needing to make changes to orders and delivery dates. Communication is vital to success, and at Tencell, we strive to communicate clearly with our suppliers and customers to ensure we achieve the desired outcome for both.

To discuss how we can support and work with you, please email sales@tencell.com