Supply chain shortages are continuing to challenge production targets and pricing structures.
Both COVID-19 and Brexit have made a significant impact on the global supply chain and critical shortage examples now include (but not limited to) steel, polymers (plastics), epoxy/polyester resins, white paint, solvents, isocyanates and computer chips.
Production plans rely heavily on the consistent supply of raw materials and components and we are now seeing the shortage effects having an impact on lead times, supply quantities and supply timing. As a result, there is little choice but to re-schedule some production slots to periods where the material needs are met.
As the trailer market is under a period of exceptional demand, with some lead times now stretching into Q2 2022, there is little room for convenient contingency plans and any production delays now will have an inevitable impact into the future.
The secondary impact is cost. The vast majority of our suppliers are now increasing their prices to counter the Brexit effect and global material cost increases. The unprecedented increased market demand has only helped to exacerbate this effect. We are therefore no longer able to offer long validity periods for quotations and must reserve the right to amend those quotations as and when they become unviable.
To counter these effects, where possible, Don-Bur is buying a larger quantity of bulk stock to smooth out supply inconsistencies and keep costs to a minimum; however, it is not always practical to procure significant stock holding for all components and, in some circumstances, we are at the mercy of our supply chain.
Although lead times are already longer than normal, we are strongly advising our customer base to bring forward their budgetary considerations for future requirements and place orders as soon as possible to give us as much opportunity as possible to smooth out any supply chain issues.
To offer additional re-assurance, we vouch not to inflate our prices for excessive, short-term gain and will only adjust pricing in line with supplier increases and to preserve our financial health.
It is not possible at the current time to predict how severe these impacts will be and we would kindly ask for your understanding and patience during this difficult time. We will contact any of our customers that we feel may be directly affected; however, if you have any concerns, please feel free to contact us.
Published: Tue 27 Apr 2021
Updated: Tue 09 Jan 2024
Author: Richard Owens
Published by: Don-Bur