Shortages sorted

Gaps on supermarket shelves, months-long delays on deliveries of household appliances and new cars: many consumers are getting the feeling that all is not well with supply chains. This exceptional situation is part of Fabian Dreier’s daily work life too. In his function as Head of Supply Chain Management, he and his team at Endress+Hauser ensure that the materials needed for manufacturing flowmeters are always available.

Since the start of the pandemic, this has been a mammoth task: “Supply chains are faltering, while there is a boom on the demand side. Numerous sectors are growing, and the surge in digitalization is causing shortages of electronic components in particular,” the 40-year-old manager explains. Consequently, scores of manufacturers have been forced to suspend production, he says. Endress+Hauser has always been able to maintain its ability to deliver. “There is more to that than good luck,” Fabian Dreier emphasizes. “We have a stable global supplier network to depend on for our procurement process.”

If there are bottlenecks on the horizon, the purchasing department draws on a whole raft of measures. “In critical situations, we always try to talk with distributors and manufacturers directly. We put in queries to other suppliers on the market, our equipment partners and other competence centers in the Endress+Hauser Group,” Wenting Zhang-Kilian says. One advantage is that Endress+Hauser has consolidated its electronic purchasing volumes for many years. “That gives us greater visibility and higher priority in manufacturers’ eyes,” Fabian Dreier adds. In addition, the research & development team checks whether other versions of a component can be used or if a redesign is possible. In the worst case, qualified component brokers also come into play.

The intensiveness of recent months has forged a bond between all involved. “We have established good processes internally as well as with external partners, and our suppliers are highly motivated to cooperate and keep things rolling.” Fabian Dreier underscores the point: “This is a bond that will grow yet more important in the future. Global transport networks remain disrupted, component delivery times are gradually stabilizing, and rising energy prices and faster innovation cycles are exacerbating the situation. But we will find solutions for that too – together.”