Dear Valued Customer,
At PartsSource, we understand the importance of timely access to parts and services to ensure your equipment is operational for patient care.
Your Partner in Supply Chain Continuity
As your partner, everything we do is about improving the reliability of your medical equipment maintenance supply chain. The world is experiencing supply chain disruptions, and unfortunately our industry has been impacted as well. That is why we compiled this update regarding the current state of the global supply chain, based on multiple inputs, including ongoing conversations with suppliers. Our objective is to help you understand the forces challenging supply chain continuity across industries and what PartsSource is doing on your behalf to mitigate these risks.
Global Supply Chain Challenges Across Industries
- Shortages in the worldwide workforce: Whether it be less workers in the factory or fewer truck drivers delivering parts, workforce shortages are slowing the production and delivery times for goods. Across all industries, freight volume is up over 35% from last year, but the availability of truck drivers is at its lowest in three years.
- Port closures: Some ports have reported delays three times longer than experienced in the past. Additionally, a shortage of 600,000 workers at ports and docks across the United States is causing delays in unloading products.
- Availability and price increases: Not only are certain items difficult to secure, but the cost of material to create these items has increased. Some manufacturers have experienced increases of over 100% in raw material costs. As an example, resin has increased in price by 163% since August 2020.
How PartsSource is Responding on Your Behalf
When the COVID-19 pandemic hit, we took proactive steps to leverage our people, processes, and technology to help you maintain supply chain continuity, and you can trust PartsSource as your partner to help mitigate ongoing supply chain risks.
PartsSource Actions to Promote Supply Chain Continuity
- We conduct weekly meetings with suppliers that have the highest incidence of delays to anticipate potential product availability challenges.
- Our dedicated sourcing team proactively identifies options that will help mitigate delays, by offering alternatives at the time of purchase.
- Our Supply Chain and Warehouse Operations teams analyze disruptions and backorder events to recommend inventory solutions to help mitigate future delays.
- We monitor the success rate of suppliers’ projected delivery dates. As suppliers fall below an 85% success rate for fulfilling estimated order shipping dates, our team analyzes their shipping trends and updates our system to ensure accuracy.
- Our Supplier Solutions team has increased capacity with new dedicated team members, and we will continue to bring on more in the coming year. These resources will be consistently communicating with our suppliers to advance solutions for your needs.
We value your continued partnership and understanding as we continue to learn and expand our strategies to deliver the most reliable medical equipment maintenance supply chain possible during this challenging time across industries. We are committed to keeping you informed as new information is received.
Sr. Vice President, Operations