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COVID crisis requires changing supply chain approach





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June 1, 2020

11:36 AM

How do we improve efficiency? Will evaluation of efficiency lead us beyond headline price to installed cost? Is supply chain efficiency a praiseworthy objective during extreme supply disruption? Will plant closures impact availability more or less than interrupted stock purchasing cycles? In the world of price and delivery, which is your priority? We evaluate price because it is easy to compare in Excel spreadsheets. Installed cost, on the other hand, requires a novel analytical methodology. Yet, common sense tells us that an engine at idle does not get good mileage.  A steady flow of on-time deliveries maximizes efficiency and return on investment.


Now we face many questions never before encountered in previous economic disruptions. Will the recovery be V-shaped? U-shaped? Perhaps a Nike swoosh? Or will we enter a lush green valley? How much will our undefined social patterns impact the recovery? How will other cultures combat reduced expectations of wellbeing? Will society accept a twenty percent drop in economic activity? How will a perceived long-term reduction in the standard of living impact decision-makers? Online versus on-location and the consequences of social distancing are still to be determined.


SUPPLY CHAIN INNOVATION TO THE RESCUE


If we are pursuing more efficient and effective supply chains, where improved planning and responses lead to lower installed cost, how do we achieve this? What pioneers will lead the way to new frontiers? How will decision-makers confront custom, and steady as we go institutional instincts? This too shall pass or pass us by. Is the cost of change greater than the risk of not changing, or vice versa?


Arm’s length versus hand-in-hand. Price versus delivery. Risk mitigation versus risk-taking. Do we understand our supply chains, or have we outsourced said understanding to established interests? If you have excelled or dominated in the current environment, why would you transition voluntarily? Is the current winner of your confidence worthy of said confidence?


On the other hand, if the current framework of engagement limits your audience, you have no chance of survival unless you pursue innovative approaches. An epic battle of attributes, Batman versus Superman, or Flash versus The Hulk, new versus old.


Here comes J2 Resources: Big company supply chain and quality, but with small-company-like responsiveness, attention to detail, model documentation, detail by heat number, integrated supply chain and business development functions. All combined with a breadth of inventory that redefines the concept of ability to serve. Clever and quick contrasted with brute force. While brute force may have value, it is in times like these that new solutions may arise by engaging a resource that is clever and nimble. Never overpowering, yet extremely adaptive. Loading arms, pumps and custody transfer equipment for pipelines and terminals, as well as valves for nearly every application. All the various and sundry for your everyday piping needs and FAST. Where else can you discuss your full project scope in one meeting? Do you currently engage a supplier with this range of expertise and still have peace of mind around quality, supply chain and price?


As we are all aware, a general rule applies to delivery. The greater the value-added, the longer the lead time. For instance, we can expect pipe to have a shorter lead time than the fitting made from it. We can expect flanges to take longer than the billet they are made from, and so on. Valves are historically the longest lead item.


If you are a manufacturer quoting a project that has gone out for bid, when do you begin to buy the raw material? What are the lead times today versus when the BOM was shopped? Which items on the material list will you be awarded? All these questions compound inefficiency and consequently result in risk-mitigating behavior, delayed delivery and an increase in installed cost. Arm’s length is inefficient. The drawbacks are compounded in special grades and heavy wall thicknesses typical in projects.


J2 HAS A DIRECT APPROACH


When J2 engages a project, we take a different approach. We look at your requirements, analyze raw material availability, pick a manufacturer for material that is known to be effective in the particular material scope, and send them the selected BOM with delivery requirements. J2 Resources then prices the delivery rather than relay their standard delivery. At J2, certainty of outcome is not a platitude. We believe a different approach and different principles lead to different results.


J2’s inventory includes a laundry list of world-class suppliers, both domestic and international. Although we are extremely competitive, none of our suppliers are chosen on price. Inventory purchases are almost never competitively bid. Capabilities are paramount in vendor selection. Recently, we created a supply chain for fittings used in HF Acid service. A mill-certified Low RE fitting sets a new bar for the industry. Just one example of the harmony achieved by our cooperative and transparent Supply Chain Optimization process!


Our supply chain efforts are augmented by a world-class quality program that does not rely on audit or an inspection. Purchase product specifications, first article qualifications, and ongoing verification testing protocols all designed around the most critical service requirements and latest specifications. Womb to tomb, we trust but verify.


If J2 Resources leads in quality, maintains a global supply base of approved (and soon to be approved) manufacturers while also possessing an industry-leading breadth of expertise–what else differentiates J2 Resources from the rest? While enthusiasm may be a man’s best friend, our dedication to providing service and meeting deadlines is exemplary. Our in-house machining facilities are an exclamation point to our claims of exceptional service, and our semi-finished inventory further makes the case.


Your emergency needs are tackled as a team. We are all on-call ALL the time. Our experienced staff gets you what you need when you need it. Whether or not your service representative requires help is irrelevant; help is coming. To put this into perspective, our staff is more comfortable calling than texting. In addition to a great staff, you will be pleasantly surprised at the vast array of SKUs on hand. Low temp, high pressure and heavy wall, all in stock and on your AML.


I think I can, I think I can, is the story we live by. The little distributor that could. An end-to-end approach that is diagnostic. Planning which is proactive. J2 Resources is inherently adaptive, extremely communicative and unique in many ways. If the pause caused by today’s environment has placed improved performance, new approaches and supply chain optimization on your radar, now is the time to consider J2 Resources.


For more info copy:  For more information on J2 Resources and how you can cut costs through their supply chain expertise, please call 866-280-2418 or visit J2Resources.com.

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