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Supply chain bottlenecks and breakdowns are not uncommon, but the last few years have seen potent, relentless disruptions stemming from the COVID-19 pandemic and other factors. Global trade was knocked out of balance, inflation ballooned, material prices soared, and a marooned mega-container ship lodged across one of the busiest shipping canals and blocked traffic for days. We saw cargo waiting to be offloaded at ports and huge stacks of containers waiting to be cleared onshore. Add in geo-political instability and labor shortages, and the strain on business has been enormous.
In terms of the printing industry, the impact of supply chain disruption is dramatic, not only for print service providers (PSPs) but for vendors, too. If PSPs do not print, then vendors will have a negative impact on their annuity revenues. When parts and consumables are not available when needed, production is slowed or even halted. The fallout could mean PSPs’ customers are lost as they move their jobs to other competitors or find alternative solutions.
With PSPs at the sharp end of supply chain disruptions, Keypoint Intelligence conducted a survey with a selection of print providers to better understand how they are impacted. We also invited suggestions on the ways in which they and their print system suppliers can better prepare and build supply chain resilience for the future. Here are a few key highlights uncovered in our quantitative research:
- Printers are reliant on receiving access to parts and supplies at the point of need. To that end, rather than err on the side of keeping lean inventories for the sake of saving on space and/or resources, digital print vendors should consider allowing more supplies to be stored at customers’ premises or with locally based service engineers.
- Proper inventory management, predictive maintenance, and remote troubleshooting will help head off potential supply bottlenecks and minimize disruptions.
Keypoint Intelligence Opinion
Unfortunately, digital printer manufacturers and PSPs do not have the luxury of operating in times when the supply chain is stable and predictable—but they can help each other. A successful symbiotic relationship requires trust and a sensible strategic approach that includes identifying gaps and implementing initiatives to reduce supply and service wait times and increase efficiency. This ensures that PSPs can get on with delivering the vital work they need to do for their customers, while freeing up valuable time for service technicians. Digital printer manufacturers and distributors can provide PSPs with the necessary expertise, resources, and training to troubleshoot issues and, therefore, increase efficiencies and productivity. Ultimately, PSPs want supportive clear communications with their print system vendors, with proper production planning and inventory management key to maintaining a good supply chain in these current times. The good news is that new technologies keep coming to help vendors and PSPs better serve print buyers.
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