As most of our gas consumers recover to 100% productivity again, ‘go-to production’ timelines become more challenging when supplies do not arrive in time before they have already scheduled their production runs. And as gas consumers and manufacturers scale up production again, knowing supplier lead-times become much more crucial. Relying on JIT (Just-In-Time) supply chain today is becoming a huge challenge. Late supplier deliveries are starting to impact both time and material allocations and their limited warehouse space among other issues for manufacturers. In turn, effecting their bottom-line.
So how does this relate to Gas Suppliers & Distributors? Because most of these types of vertical markets are gas consumers relating to welding gases, CO2 carbonation, food preservation, and ingredient extraction solutions, etc.
With more expected stop/start demand growth from both the industrial manufacturers and medical gas customers for the next couple of years, the higher the supplier delivery demand will be for most aspects of the compressed gas industry. This includes core gas supplies, accessory parts, plant equipment, and related services. And with higher industrial manufacturing demand, it could mean that gas suppliers and distributors will need to buy more bulk supplies up front to help offset high demand. The point here, is that business processes and operations efficiency become even more important, no matter the size of the company for both gas suppliers and distributors in this new era.
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