Distributor and Supplier Relationship Improves Supply Chain

With today’s supply chain challenges, companies must be more strategic in managing supplier and distributor relationships. Complications can often arise, and companies must be prepared to respond promptly and efficiently. 

Recognizing game-changing technologies 

A big challenge for the distributor is priority alignment, due to the supplier’s ability to obtain and create products. For example, inventory management has become a problem for both parties because of the risks associated with procurement.

Artificial intelligence (AI) can help. For example, distributors can strategically manage suppliers by incorporating smart devices and processes. While AI’s full capabilities remain untapped, there is still a way to incorporate it operationally to obtain better insights.

Tools designed to incorporate AI present a myriad of data. They can help identify shifts across a wide range of commodities and products, driving insights into future trends and helping to make “smarter” sourcing decisions.

Brennan provides four programs to help facilities create a “smarter” environment. These include the following: 

1. BI Verify reduces order errors to near zero by verifying the parts by weight. It prevents delays in production by ensuring the correct parts are being shipped to the customer.
2. BI Identify helps with the identification of parts being ordered. The team at Brennan also helps with labeling bins and confirming if there is a better product alternative than what is currently being used—even if it’s a custom, non-off-the-shelf part.
3. BI Perform consolidates the number of suppliers used in production, with cross-referenced Brennan part numbers to more than 30 competitor suppliers within the industry.
4. BI Supply alleviates the widespread supply chain disruptions by keeping parts, or safety stock, on hand. So, when you need it, you will have it.

Understanding the need to revolutionize 

Supply chains are being called to transform and adapt to the dynamics of Industry 4.0. While utilizing different technologies, such as IoT (Internet of Things) and additive manufacturing helps, integrating what’s needed for supply chain management is more critical than ever. It requires a holistic approach to having complete visibility.

Helping companies transform operations has been a crucial point for Brennan. From efficiency to customization, the goals are a means for speed to market, service effectiveness and business creation.

Creating profitability depends on uptime

The supplier depends on the distributor to get their products to market, while the distributor depends on the supplier to obtain the product in a timely fashion. By ensuring the communication is strong between the two, there will be increases in efficiency and more robust project management.

Profitability depends on uptime, which is why supply chain management is crucial. Therefore, distributors need to look at how suppliers manage product —and that’s more than providing innovative technology. It’s about delivering quality product.

A reliable hydraulic system means prioritizing quality and efficiency, thereby preventing future supply chain disruptions. Since demand is high from lack of supply, it is more critical to ensure quality and efficiency are at an ultimate high in the production process.

For example, a failed hydraulic fitting or O-ring can cause a line to be down, preventing production. By incorporating what is expected in today’s modern manufacturing environment, quality and efficiency can be increased from more intelligent controls with real-time data.

Technology is available to help, and it must be adopted now. So, while manufacturing is the slowest to adapt to digital solutions, it is becoming more transparent that it is a must to prevent supply chain disruption.

To learn how the aerospace industry has an impact on supply chain, read our BluPrint!