Supply Chain Management

CONGESTION MANAGEMENT

Congestion Management by PassPlus

Steel, plastics, electronics, wood - since the Corona pandemic, changed demand structures in industry have resulted in sometimes dramatic material shortages. This has resulted in production stoppages, reduced deliveries or special procurements at increased costs. In particular, increased delivery times and the unpredictability of supply are further exacerbating the situation. In this situation, it is crucial that you take action and systematically implement measures to improve your situation.

Together with you, we develop a systematic failure part and escalation process. Preventive risk management is the pillar for existing and future supply shortages. Whether at item or supplier level - close cooperation between purchasing and engineering stabilizes your interface management and offers cross-supply chain collaboration.

We support you in the search for alternative suppliers, develop contract templates with price escalation clauses together with you, design and conduct supplier workshops to develop joint solutions in the event of material shortages, or train your purchasing staff for price negotiations. Benefit with us from a large network of alternative suppliers and a matrix of measures in escalation situations. Single or multi sourcing - a simple decision.

It is of course extremely practical if all the goods required can be ordered from one supplier. But this also creates a dependency relationship. If an entrepreneur relies on a supplier and even aligns production with him, he puts himself in an unfavorable position. A supply bottleneck leads to downtimes and, in the event of a price increase, the company can hardly apply any pressure. If the supplier then changes the design or quality of its products, the buyer must also change.

The situation is different when several suppliers are available due to product standardization. If one fails, this can be compensated for quickly and easily. Multi sourcing is more complicated to coordinate, but it pays off. Due to the existing competition, suppliers will be willing to offer better conditions and make them more flexible. Equally helpful is the bundled allocation of orders, whereby all similar goods are covered by one or two suppliers. This way, maximum volume discounts are achieved for the same purchase volume. We support your team in finding the right approach for you and work with you to find the most suitable supplier in the various commodity groups. Whether from supplier qualification to supplier workshops, or for individual sub-steps - PassPlus is at your side.