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How to Keep Your Manufacturing on Track During the East Coast Port Strike

How to Keep Your Manufacturing on Track During the East Coast Port Strike

Sourcify
October 04, 2024

The ongoing East Coast port strike has caused significant disruptions to global supply chains, but it doesn’t have to bring your business to a halt. At Sourcify, we’re here to help you stay ahead with smart manufacturing strategies that mitigate the impact of delays and keep your production running smoothly.

In this special update, we’ll focus on:

Optimizing Your Production Schedule to Minimize Delays
Diversifying Supplier Networks and Manufacturing Locations
Building Flexibility into Manufacturing Contracts
Anticipating Supply Chain Bottlenecks and Staying Agile

1. Optimizing Your Production Schedule to Minimize Delays

In times of uncertainty, your production schedule becomes a critical asset. Here’s how Sourcify helps you adapt:

Production Prioritization: We work with you to identify which products are the most time-sensitive or high-margin and should take priority in the production queue.
Lead Time Flexibility: By negotiating flexible lead times with your suppliers, we help you adjust production schedules based on available transportation options and potential delays.
Staggered Manufacturing: If possible, stagger your production runs to avoid overproduction and storage issues if shipments are delayed due to port congestion.

2. Diversifying Supplier Networks and Manufacturing Locations

The port strike is a reminder of how essential it is to diversify your supply chain. If you rely too heavily on a single supplier or geographic region, you’re at greater risk of disruption. Here’s how we can help:

Sourcing from Multiple Regions: We can connect you with suppliers from different regions to reduce your reliance on East Coast ports or even those within the United States.
Shifting Production Closer to Your Markets: Consider nearshoring or reshoring some of your production to reduce shipping times and avoid congested trade routes.
Building Redundancy into Your Supplier Network: We help clients develop relationships with multiple suppliers, so if one source is compromised, production can quickly pivot to another.

3. Building Flexibility into Manufacturing Contracts

To prepare for the unexpected, your manufacturing contracts should have built-in flexibility. Here are a few clauses you should review and possibly renegotiate:

Flexible Production Windows: Ensure your agreements allow for adjustments in production schedules without penalty in case of external delays like port strikes.
Volume Adjustments: If demand fluctuates, it’s essential to have the ability to scale up or down your production volumes without facing penalties for reduced orders.
Force Majeure Clauses: Review your force majeure provisions to understand how delays or interruptions beyond your control—such as a port strike—are covered.

4. Anticipating Supply Chain Bottlenecks and Staying Agile

When a key link in the supply chain—like an East Coast port—experiences disruption, the ripple effects can spread quickly. Here are some potential bottlenecks to prepare for:

Raw Material Shortages: Delays in receiving critical materials can slow down your entire production line. We can help identify alternative suppliers to ensure you maintain steady material flow.
Logistical Constraints: While shipments are delayed, anticipate increased pressure on storage and warehousing capacities. Build a plan to manage inventory overflow.
Longer Lead Times: As goods sit in transit or await port clearance, it’s essential to adjust production plans accordingly to avoid oversupply and associated costs.

Work with Sourcify to Keep Manufacturing Resilient

The East Coast port strike is a clear reminder that manufacturing strategies must be agile and adaptive. At Sourcify, we’re here to help you optimize production schedules, diversify supplier networks, and ensure that your manufacturing operations stay on course.