Wiring Harness News May-Jun 2022 - Page 37

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all sectors . In February 2022 , the U . S . Bureau of Labor Statistics noted that inflation rose 7.9 % over the last 12 months , the largest rise in a 12-month period since 1982 .
Transportation Costs
Accenture found that the pandemic created supply chain disruptions for 94 % of Fortune 1000 companies . As of March 2022 , transportation costs continue to rise . Truck freight costs have seen a sharp impact , growing more than 16 % year over year in October 2021 , with the Producer Price Index continuing to climb . Airfreight prices continue to climb as well , with rates up more than 50 % year over year as of December 2021 , according to the Consumer Price Index .
Since freight costs are related to how far products ship , partners with global facilities can help reduce costs on transportation services . For example , Wesco has facilities in more than 50 countries , helping provide lower total shipping costs compared to other supply channel providers that may source materials from offshore or across the country .
Increased Product Lead Times
We have seen delays on near-term order shipments pushed out due to manufacturing disruptions and an increase in the number of long-term orders placed . The combination of the two is driving up product lead times to unprecedented levels . New urgent orders may be pushed to the back of the line due to manufacturing capacities being consumed by speculative forecast planning . That cycle can repeat , creating longer lead times .
In this market , construction planning is taking place further in advance to secure raw materials , contributing to extended timelines and rising costs . In the manufacturing industry , many organizations are placing orders for products months in advance .
Global Market
While you may source locally and try to utilize domestic manufacturers , global events still impact us all . Oils are used to manufacture plastics and metals are used to make wires , cables and enclosures . Those commodities trade on a world-wide platform . Disruptions in the global supply can impact your local pricing and availability . Long-term planning and utilization of inventory services can help you minimize supply volatility and smooth out cost variability .
Forecasting for Dedicated Inventory
Wire and cable customers can mitigate uncertainty by partnering with a supply channel solution expert . The first step we encourage our customers to take is to share a material resource planning ( MRP ) forecast to plan at least six months out . Disruptions to the supply chain forced many supply channel providers to operate on a first-come , first-served basis . To help solve this additional complexity , we secure inventory with specialized programs for end users or customers . For example , many of our customers put vendor-managed inventory ( VMI ) programs in place to dedicate inventory on-site , so we can anticipate their long-term needs .
At Wesco , it ’ s our job to keep the material flowing , so the process is seamless . Proactive partnership and communication with customers are essential to understanding and anticipating demands .
Product Substitutions
Once long-term forecasts and VMI programs are in place , it ’ s important to have approved product substitutions for a diversification strategy . Identifying substitutes has never been more relevant to customers than now . Over the last year and a half , we ’ ve seen more manufacturing customers get deviation approvals on their building materials . If one product has a shortage , customers need to look at the application parameters .
To accomplish this , start by asking the right questions . For instance , we need to understand the voltage and temperature requirements and what the operating conditions need to be for products to be used in certain environments . It ’ s important to know if products are exposed to oil , gas or anything corrosive . Also , will the product be operating in a high-temperature environment ?
Our customers rely on us to provide product recommendations that are not only available but can safely meet those parameters . We have experience working with regulatory bodies including Underwriter Laboratories , the Canadian Standards Association , the Society of Automotive Engineers ( SAE ) and the International Standards Organization ( ISO ). Having worked with industry associations that dictate what products can and can ’ t be used within certain applications , we make recommendations to find the best solutions .
The global supply chain is under pressure . Having a partner who understands how to navigate disruptions and leverage global capabilities has never been more important . We guide customers through forecasts , reserving products and sourcing substitutions . Our teams can help you adapt and find alternatives when faced with shortages . We welcome the opportunity to leverage our $ 2 billion inventory , industry-leading knowledge and value-added services to help build a more resilient supply chain and drive efficiencies to your bottom line . the protected metal .


with Perma-Seal Solderless Terminal and Splicing Connections from Molex

Heat-shrinkable Perma-Seal insulation protects joints from abrasion , water , salt , and other corrosive compounds .

Seal and protect your terminations with Molex tooling , providing long-lasting , moisture-proof connections .

In Stock and Ready to Ship !

For stocking information call 800-328-2724 or visit www . waytekwire . com / permaseal