Supply shortages that ripple through production networks to cause bottlenecks, delays, idle time, or even entire factory shutdowns are nothing new in manufacturing.
Automotive shutdowns in particular have made headlines in the last 12 months. Jaguar Landrover paused production in the UK due to a part supply issue, Stellantis halted production in Italy thanks to an engine components shortage, and Honda suspended operations at some Chinese plants as a result of ongoing semiconductor supply problems.
But it’s not only automotive production that’s impacted. Solar panel manufacturers in India have had to down tools as they wait for domestic components to replace foreign imports, while LG Chem temporarily shut a South Korean plant due to difficulties in securing naphtha feedstock.
The root causes of these shortages are often things like geopolitical disputes which – assuming you’re a supply chain or plant leader and not a politician – are largely out of your control. The real problem is you can’t see these supply issues coming until it’s too late to take preventative action. You’re fighting supply chain disruptions after they happen, because your systems tell you what’s already broken, not what's about to break.