By Frank Bowman, CEO, Niche Electronics
Here we go again.
No matter what you think about the current trade war, it undoubtedly has some not-so-reassuring parallels to COVID-era supply-chain problems.
During at talk at the Economic Club of New York last week, Chicago Fed president Austan Goolsbee reported concerns among manufacturers that “this is going to take us back to the 2020 kind of experience with supply disruptions.”
In fact, we’re at risk of a return to a range of COVID-era pressures: uncertainty of securing certain parts, a push toward re-shoring production, and fears of a production slowdown for an indeterminate period of time.
While we are clearly operating under conditions we cannot control, there are operational approaches that we do control. If there’s a silver lining to be found, it’s in the lessons we learned and the strategies we implemented during COVID:
Diversification
To reduce dependency solely on existing suppliers—especially those in severely impacted regions—we expanded our options for sourcing parts. We identified alternative suppliers and sought domestic sources to shorten the supply chain.
Inventory focus
We worked hard to stock critical components and build strategic stockpiles whenever possible. At Niche, we also created and deployed proprietary inventory systems and processes, giving us foresight into availability and quality of materials – and alternatives.
Flexibility and collaboration
When some components are difficult to source, we worked closely with customers – sometimes identifying workable alternatives, other times redesigning a project to use available parts. One of our core differentiators – customer communication – became critical in relaying challenges, developing solutions, and planning for future projects.
A focus on the human factor
It’s critical to keep up with advances in automation, AI, and manufacturing technology. But during COVID, it was our team of professionals that enabled Niche to provide value to customers. Continuous in-house training, fostering innovation among our workforce, and focusing on employee retention and advancement all enable Niche to deliver quality.
One vital lesson we learned during COVID: there’s no “going back.” The companies (like Niche) that embrace change and seek solutions become more nimble and resilient in the face of the next challenging environment – like a global trade war.
