Your product is stuck on a cargo ship…

…while you push back yet another deadline and employees scramble to address customer complaints. 

If this sounds familiar, you aren’t alone. This has been the experience of companies across the globe for months as supply chain disruptions like the Suez Canal blockages, unprecedented weather events, and COVID 19-related issues slow down shipping times and drive up costs. 

As the country takes desperate measures to speed up container turnover at ports, like the now 24/7 operating Ports of Long Beach and Los Angeles, what can you do to take matters into your own hands?

First, let’s look at the current status of international supply chains.

Rising Costs, Slower Lead Times

Simply put, the cost of international shipping has become unmanageable in the face of the COVID-19 pandemic and other uncontrollable factors. 

No one knows how long it will be before costs stabilize. And since raising consumer prices is only a partial – and unpopular – solution, proactive companies are shifting to domestic shipping models.

The Numbers

  • According to The Wall Street Journal, since September 2019, the weekly spot price to ship a 40-foot cargo container from China to the U.S. west coast increased from $1,437 to $20,586. 
  • Diesel fuel costs are up 25%. 
  • Carrier capacity is projected to decrease to 60-65% of commitments – putting a further drag on global shipping.  

Take Back Control

Some things are beyond the control of even the best procurement managers. But as the holiday season approaches, increased demand means more pressure than ever on companies to combat product shortages. 

Here’s the urgent challenge: How can you take back control of your distribution and lead times? Reevaluate your supply chain – every link – and determine what can be reassigned to a domestic source.  

Shorter lead times and lower costs help you stand out from competitors. You will be able to confidently offer quick, reliable services that consumers and partners demand.

Domestic Production and Shipping

International supply chain challenges coupled with the global silicone tubing shortages has companies searching for ways to keep business moving. Time is money. Don’t wait for your product to cross the ocean.

Switching to a domestic shipping model reduces risk and fluctuation for a more stable, reliable, and consistent supply chain.

KEP is the only supplier of natural rubber latex tubing in the USA. Over nearly six decades of success, KEP has remained a stable source for latex throughout dozens of supply chain disruptions—and we promise those ingredients for success – efficiency and reliability – to our customers.

 

How can KEP help?

 

 

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