Jack Welch, the former chairman and CEO of General Electric, was noted, “Change before you have to.” That is good advice, and for purchasing executives in the ink industry, they are important words to live by.
 
The challenges facing purchasing executives are becoming ever greater. Jeff Shaw, Sun Chemical’s chief supply chain, quality and business improvement manager, recently led off his presentation during NAPIM’s Annual Convention’s Technical Associate Member breakfast with Welch’s quote, as he focused on the concerns as well as the opportunities facing the ink industry and its suppliers.
 
There are many concerns for the ink industry. Increasing regulatory enforcement, particularly in China, is causing shutdowns of key raw material producers. Some suppliers are cutting off manufacturing of certain ingredients due to new regulations like REACH, while consolidation is reducing the number of suppliers in other segments. Meanwhile, printers want their products right now. It makes for scheduling conflicts.
 
“We have a very long supply chain,” Shaw told attendees. “It is the new normal. Lead times can be out to 120 to 150 days, but while there are long supply lead times there are short customer demand requirements. This requires a balance.”
 
The ability to have a secure supply chain is a huge concern.
 
“Analysts say that we have seen the most force majeures ever in the chemical industry, and we have to know where to go,” Shaw said. “There are geopolitical challenges, whether in China or with tariffs. This is what we are dealing with, and we have to do a better job with preparedness.
 
“You need to know your suppliers, your feedstocks, your materials, your Plan B,” he added. “You have to have a specific plan. The goal is to predict and prevent issues.”
 
While the supply chain is getting longer, customers are looking for just in time delivery to control inventory.
 
“We are seeing smaller, more frequent shipments to our customers,” Shaw noted. “We have to manage with a scalpel, not a sledgehammer. We have to have collaboration and communication so we can plan better and take cost out, enabling real-time management. When a situation occurs, we need to be positioned to respond quickly.”
 
At the end of the day, Shaw said that the partnership between customers and suppliers has to be profitable for both sides.
 
“We want it to be a win-win for us and our suppliers,” Shaw concluded. “If you are successful, we are successful.”