Rarely has the impact of the global supply chain been felt in our daily lives like it is today. Most people go about their lives with little regard to how products get designed, manufactured, and delivered to the point of purchase.

For businesses around the globe the trend since the turn of the century has been toward a high velocity global supply chain, Just-In-Time (JIT) inventory, and measuring inventory turns in hours rather than weeks. There are many obvious benefits to this strategy: cost, cash, space to name a few.

No question that it is an attractive business strategy.

You can certainly see why manufacturers would be “all-in” on a global supply chain strategy. In a predictable and reliable world, it’s a win-win strategy with its bonanza of benefits. The problem comes when the world is not predictable, nor reliable.

However, we are constantly faced with both predictable and unpredictable events that have had severe effects on business. In the past decade we’ve dealt with a trade conflict leading to increased tariffs between China and the United States, WTO actions against Chinese metals manufacturers for “dumping” their products into Western markets, natural disasters that have disrupted the supply of component products that were previously never paid any attention.

COVID-19 exposed even more of our vulnerabilities over the past 18 months and the ripple effects continue into the current semiconductor shortage and freight dislocation.

It’s in times like this where I have experienced first-hand the value that Insulectro plays in the global supply chain. I’d always counted our product offering, service model and technical support being what our customers value. But, in this constrained market, I realize that Insulectro also has systems, knowledge and know-how to manage and predict the needs of its customers. In essence, our business model also has the built-in ability to absorb many of the challenges inflicted by an unpredictable world.

Insulectro plays a very valuable role in the global supply chain by providing a “shock absorber”. Its investment in inventory means that our customers don’t have to source globally. They don’t have to plan out 4, 10, and sometimes 16 weeks for inventory.

Insulectro’s capability to manage that inventory and stock it locally to serve quick turn demand but is also able to act as that shock absorber that helps to smooth out supply and demand challenges in an unpredictable global supply chain.