IMPORTANCE OF ENSURING SUPPLY CONTINUITY
Ensuring supply continuity of corrosion inhibitors is crucial for industrial cleaning, aerospace cleaning and car care fluid manufacturing. Moreover, such maintenance industries play a critical role in maintaining machine efficiency, reducing fuel demand, and failure prevention. Consequently, manufacturers must maintain a secure supply chain for the benefit of the wider economy.
In 2017, a study concluded that machine downtime costs British manufacturers more than £180bn per year. Many factors impact downtime, including corrosion, which affects both machines operating in corrosive environments, and lubricated parts. Corrosion inhibitors reduce machine corrosion issues and help to avoid costly downtime.
US airlines have estimated that the average fuel use reduction due to regular engine washing is 28 gallons (127 litres of fuel) per flight. Turbine cleaners use corrosion inhibitors to prevent flash corrosion and aluminium staining reactions in their cleaning operations.
Car care fluids include automotive antifreeze, brake & clutch fluids, cleaning products and fuel additives. Furthermore, car owners and fleet owners use these products to ensure continued safe and reliable operation. Suppliers of additives such as corrosion inhibitors for these products, therefore, create benefits for the wider economy, by ensuring supply continuity.
CHALLENGES TO ENSURING SUPPLY CONTINUITY
Businesses generally face geopolitical, environmental, sociocultural, and economic threats to maintaining continuity. As a UK manufacturer, we currently face geopolitical uncertainties due to BREXIT. The United Kingdom will establish trading relationships with Europe, and the rest of the world. We must ensure that we counteract or minimise any adverse effects of future trading terms and regulatory frameworks on our raw material imports.
Due to the sustained period of historically low interest rates, many businesses worldwide now hold greater than historical average nett debts. Moreover, some economic commentators worry that threats to the supply side will push some businesses to default on some of that debt. Should such defaults impact our customers, we must monitor cash flow carefully in the coming months and take advice from our credit insurers. Additionally, we maintain close relationships with sustainable raw materials suppliers, and we work with sustainable overseas distributors.
Like many other manufacturers, we are assessing and monitoring the risks to the supply chain from Coronavirus COVID 19. Some producers of raw materials in countries of high incidence may experience periods of shutdown. Correspondingly, we must ensure continuity of our raw material supplies.
At Brad-Chem, we ensure that we source our raw materials from at least dual approved sources. We have assessed our supply chain security in relation to Coronavirus Covid 19. We have identified several key raw materials either immediately or ultimately originating in China.
Due to BREXIT, we have already increased our stock holding by 50%. In anticipation of any supply chain issues that may arise from Covid 19, we are further increasing our stock holding for the raw materials that we believe may be affected.
We believe, therefore, that we are well-positioned in ensuring supply continuity in any foreseeable event of disruptions arising from Covid 19 or BREXIT.
If you seek reassurances about the continuity of products that we supply to you, please Contact us for further details.