**London**: David Schultz of Westfall highlights how ongoing plastics and resins shortages are driving frequent supply chain disruptions, urging businesses to adopt data-focused strategies to manage complex procurement challenges in contract manufacturing.
Procurement remains a complex landscape, particularly for contract manufacturing operations that must navigate the fluctuating demands of their customers. This intricacy stems from the need to accurately determine the total delivered costs associated with various Bills of Materials (BOM), a task that David Schultz, Vice President and Global Supply Chain Executive at Westfall, describes as “very complex.”
Speaking on the “Using Data to Untangle the Sticky Problems of Manufacturing Procurement” podcast, Schultz emphasises the ongoing challenges faced by the procurement sector, particularly amidst persistent shortages within the plastics and resins industries. These shortages have led to an uptick in force majeure declarations from suppliers—an indication that disruptions in the supply chain are becoming more frequent and problematic.
Schultz characterises the current procurement climate as potentially the “next normal,” suggesting that businesses must adapt to ongoing volatility rather than anticipate a return to previous operational stability. The conversation highlights the critical role of data in unraveling the challenges of procurement, noting that accurate and timely information is essential to navigate the complexities of supply chain dynamics.
As businesses strive to meet evolving production needs, the insights shared by Schultz provide a framework for understanding the ongoing developments in this vital area of manufacturing. The Arkestro Blog is reporting on these issues, capturing the intricate relationship between procurement processes and the broader industrial landscape.
Source: Noah Wire Services
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