Supply Chain Challenges – What Is Sayfa Doing?


Master Builders Victoria Supply Chain Report

Manufacturers are one of the first to become aware of increases in the cost of raw materials, and it is now evident that this is cascading through the supply chain and beginning to show up for the end consumer, because of the volatile nature of the current economy.

There is an increase in every type of raw material: energy, chemical components, transport costs, aluminium, steel and especially supplies coming from China and Asia in general.

Master Builders Victoria have released a document summarising the impact on supply delays through the construction industry.

However, as manufacturers we face our own unique set of challenges which will impact both our customers and the end users.

What the current global economy is showing us:

It is important to note that, while there is a limited amount of materials at present, demand is still not expected to peak for another few months. With new construction and infrastructure on the rise due to government spending and international borders not expected to reopen for a while, this issue may continue for months to come.

Master Builders Victoria state that their members are reporting that wait times for many products have blown out from weeks to months. They also note that pricing on some products has increased by as much as 50 per cent this year.

What SAYFA is doing

Our Purchasing Team are working tirelessly to ensure SAYFA’s product quality is upheld to the highest standard, whilst negotiating new supply chains to meet the demand. Unexpected fluctuations in raw material costs and unforeseen obstacles are destabilising supply chains, making it difficult for manufacturers to remain in the black.

SAYFA’s current focus is to keep our supply chains and manufacturing within Australia where possible, as depending on other countries to fulfil orders is now at serious risk.

 

supply chain image - raw materials

The shortage of containers and additional unrelated factors such as the Suez Canal blockage and China's worst floods in decades have impacted heavily on supply.

Congestion at ports, due to a reduced workforce, both within the terminals and in supportive functions such as truck drivers, has affected vessel timetables and limitations on the volumes of stock that can be loaded and unloaded.

Plus, as countries around the world experience shutdowns, this has resulted in fewer vessels being available substantially affecting global deliveries.

What SAYFA is doing

With over 90% of our products sourced and manufactured in Australia we are doing all that we can to minimise passing on the repercussions from container shortages and supply issues.

However, with some products and raw materials still sourced from overseas suppliers we will unfortunately see some impact.

 

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Around the world employers are having increasing difficulties finding experienced workers as a consequence of domestic and international border closures and illness as a result of exposure to COVID19.

According to the Australian Chamber of Commerce and Industry: "Supply chain disruptions were similarly identified as a major impediment to growth in Australia’s manufacturing output.  Manufacturers continue to operate below full capacity, despite growth in new orders and output, as material and labour constraints limit production.

They’re finding it increasingly difficult to source some key components of production from international suppliers."

What SAYFA is doing

With the majority of our products manufactured here in Australia we have been able to maintain solid stocks.

Our Production Team is working around the clock to maintain good stocks for our customers. We are currently operating two shifts per day with our workshop open from 5.00am to 10.00pm weekdays.

We have also started an additional shift on Saturdays in an endeavour to ensure we can keep up with demand and fill your orders on time in full.

 

supply chain image - manufacturer

As we return to a new somewhat Covid normal, the introduction of many stimulus packages has spurred an increase in spending and demand for goods which additionally puts constraints on supply.

The cost of international shipping has risen to record highs, in some cases by over 50%, which will see an impact in most businesses from manufacture all the way to retail.

What SAYFA is doing

As a way to minimise risk, early in 2018 we started sourcing from a variety of domestic and overseas suppliers to spread the load and open up options for better quality and stocks.

By diversifying our suppliers we have been able to maintain a steady flow of raw materials enabling us to satisfy most of your requirements even through these challenging times. 

 

supply-chain-image-distributor

Master Builders Victoria state that their members are reporting that wait times for many products have blown out from weeks to months.

They also note that pricing on some products has increased by as much as 50 per cent this year.

Adding to the frustration is that of further delays to materials which can occur as shipping companies try to minimise the impact of port congestion and divert or skip ports.

What SAYFA is doing

With good quantities of stocks we have been able to give consistency of supply to our customers. Throughout 2021 we have also avoided passing on any price increases to our customers and absorbed what we could in the hope to stabilise the industry.

We realise the dramatic impact that reduction in turnover due to constant lockdowns has had on our customers and their clients and have tried to work out ways to lessen these stresses. 

 

supply chain image - installer

The end user is now beginning to feel the impact of raw material costs, increased shipping and not to mention lack of supply.

Across the board all businesses have been affected and it is the consumer who suffers.

What SAYFA is doing?

By maintaining our current pricing throughout 2021 we are hopeful that our customers have been able to regain some footing and work in with their clients.

Our continued supply of most products has assisted in ensuring that whenever a project was ready for installation we could provide you with the stock to carry it out. 

supply chain image - maintenance

Our Commitment To You

As always, SAYFA remains 100% committed to our installers and are working hard to develop new products and online tools/applications to streamline processes to make the work of our installers and stakeholders easier and more efficient.

We are feeling positive about 2022 as the periods of lockdown have given us the time to analyse market trends and opportunities and strategise accordingly.

We have some exciting new product developments which we can’t wait to share – so watch this space!