In an ideal world, you would have plenty of vendors, manufacturers, and distributors up and down the supply chain to support your projects. Unfortunately, though, we don’t live in an ideal world. Since 2000, manufacturers and shipbuilding suppliers have left the industry in droves, squeezing shipyards harder and harder over the past quarter-century.
That doesn’t mean you can’t still thrive in today’s shipbuilding supply chain—but it does mean you need to adapt your strategies for shipbuilding efficiency to reflect the reality of a small pool of shipbuilding suppliers. Read on to discover our insights into making the most of what you have.
Why Supplier Diversity Matters for Shipbuilding Efficiency
Diversifying your pool of shipbuilding suppliers is an essential strategy for hedging your bets—insulating your shipyard against pricing shifts, supply chain delays and disruptions, or procurement bottlenecks. Multiple supplier contracts—the more the better—prevent you from having all your eggs in one basket and provide workarounds if one supplier faces delays or quality issues to keep your projects on budget and on schedule.
A diverse pool of shipbuilding suppliers and manufacturers means:
- More competitive pricing and opportunities for bulk purchasing
- A more resilient supply chain and readily available alternatives
- Adaptability to demand fluctuations
- Streamlined procurement processes and reduced bottlenecks
- Better negotiating power with new and current vendors
- Stronger strategic partnerships
These efficiency gains are essential for enhanced operation performance, reduced costs, and higher quality and more timely project outcomes.
However, today, a shrinking number of suppliers who are able and willing to stay in business means this diversity—and the efficiency benefits shipyards reap from it—is nice to have in theory, but hard to achieve in practice.
How, then, do you achieve efficiency in shipbuilding, given today’s diminished supplier landscape? Read on to discover efficiency-maximizing strategies that can position you to achieve more with less.
Today’s Solutions for Today’s Shipbuilding Industry Challenges
Tackling the supply chain challenges shipyards face today is still possible, even without a diverse selection of suppliers and manufacturers. Some strategies you can implement include:
Forming Shipyard Alliances
When you and other shipyards collaborate by forming purchasing alliances, you can all position yourself to have greater bulk purchasing power negotiate better prices with suppliers by applying your collective leverage.
You can also form joint ventures and strategic alliances with your suppliers by engaging in co-development projects and integrating them into your planning and production processes.
Employing Strategic Flexible or Long-Term Contracts
By negotiating long-term instead of short-term contracts with shipbuilding suppliers, you can secure more favorable pricing and a stable supply over time. You can also negotiate flexible contracts to adjust order quantities in response to fluctuations in demand.
Implementing a supplier relationship management (SRM) system will also improve communication and coordination with your suppliers, helping you make the most of your contracts and ensure smoother operations, reduced lead times, and enhanced transparency.
Investing in Supplier Development Programs
If your shipbuilding supplier is falling short of meeting your needs, you can drop them—or you can work with them to iron out the problems holding them back. Shipyards can play a vital role in helping suppliers evolve their own service and product offerings through supplier development programs.
In a supplier development program, you invest in expanding and improving your supplier’s capabilities by working one-to-one with them to target their weaknesses and improve their performance.
Implementing Advanced Inventory Management Techniques
By bringing inventory management strategies such as just-in-time (JIT) or safety stock, you can position your shipyard to more efficiently manage fluctuations in supply and demand.
Just-in-time inventory systems ensure that you receive materials from your suppliers only when needed in line with your production schedules, reducing inventory holding costs in the meantime. On the other hand, maintaining safety stock—or a calculated level of extra stock—provides a safety net to protect your operations against forecast errors or supply fluctuations.
Strategically maintaining lean inventory management with safety stock can provide flexibility and security against issues with your shipbuilding suppliers while improving your efficiency as a shipyard.
Overcome Today’s Shipbuilding Industry Challenges with Dante Valve
The shipbuilding industry has changed significantly over the past half-century, and we’ve watched it all happen. Dante Valve has been a leading manufacturer and supplier of mil-spec valves for maritime applications for three generations. Since 1983, we’ve dedicated ourselves to solving shipbuilding industry challenges as more than just a manufacturer, but a manufacturer who thinks like a distributor.
We’ve built a reputation as a jack-of-all-trades dedicated to the highest quality products and superior customer service. Whether you need mil-spec relief valves from our extensive inventory, custom design services, or precision CNC machining for special applications, we’re here to help you achieve efficiency in shipbuilding as one of the leading suppliers in the industry. Request a quote today.