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FIBA is the leading manufacturer of high pressure gas vessels - recently-arrived raw material at FIBA's Littleton siteLike most manufacturers operating globally, in 2023 FIBA Technologies, Inc. witnessed a surge in critical raw material prices and supplies, accompanied by significant challenges in transportation and logistics. Working closely with customers, suppliers and logistics experts, FIBA faced these challenges head-on and has created a series of flexible solutions that ensures customers’ requirements can continue to be met in a timely manner.

With increasingly flexible provider relationships, a creative approach to transportation, and a slew of fresh agreements FIBA has developed a materials supply chain that can be relied on well into the future.

The Surge in Raw Material Prices

We hear almost daily news reports about threats to the global supply chain. The confluence of heightened demand and supply chain disruptions in the past year contributed to a sudden uptick in raw material prices.  Added to this were the lingering effects of the global pandemic, causing disruptions in manufacturing and distribution. These interruptions led to reduced production capacities and scarcity of critical supplies, subsequently driving up prices.

Transportation and Logistics Challenges

The surge in raw material prices also had a ripple effect on transportation and logistics, amplifying existing challenges and creating new hurdles for the majority of manufacturers. FIBA anticipated the challenges and acted quickly.

With freight expenses soaring due to higher fuel prices and shipping container shortages, supply chain disruptions were widely felt across 2023 and continue today.

But FIBA’s approach to these issues has seen the manufacturer avoid the logistical bottlenecks that could have compromised production.

Thanks to its ability to anticipate and respond quickly, the difficulties that FIBA foresaw in sourcing, transporting, and warehousing materials were addressed, so production delays were avoided. That remains the case today, as the new supply and logistics infrastructure is now firmly established to become a bedrock of FIBA’s manufacturing capabilities.

The solutions included the reconfiguring of supply chains, renegotiating of contracts, and seeking alternative transportation routes to mitigate the impact of soaring costs and logistical hurdles.

Strategies for Resilience and Looking Ahead

FIBA has worked diligently to reduce dependency on single suppliers and to diversify its supply base, including sourcing from multiple locations within the US, Europe, and Asia, reducing the risk associated with supply chain disruptions.

The company sought out collaborations with suppliers, logistics partners, and distributors by renegotiating contracts and fostering stronger partnerships. In turn, this helped in managing costs and streamlining material supply.

The benefits to the customer are plain to see.  FIBA’s investment in material stocks has never been higher. With a strong inventory and a thoroughly re-engineered supply chain FIBA is able to confidently deliver to customers on time.

FIBA will continue to embrace and address supply chain issues as and when they arise, monitoring global situations that could have a knock-on effect on vessel and trailer production.

Having seen how the surge in raw material prices and its impact on transportation and logistics underscored the importance of adaptability and resilience in today’s business landscape, FIBA has developed a resilient and sustainable supply chain strategy – a must for any manufacturer.

Posted by: Andy Evans

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