Clogged global supply chains impact procurements

The Institute for Supply Management (ISM) that reports monthly on supply chain performance, stated that the supplier deliveries index, which rises as lead times for inputs increases, rose in May to its highest level since 1974. ISM recently issued this statement from Timothy Fiore, chair of the ISM’s manufacturing business survey committee: “[Panelists] reported that their companies and suppliers continue to struggle to meet increasing levels of demand… Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the [manufacturing] economy. Worker absenteeism, short-term shutdowns due to part shortages, and difficulties in filling open positions continue to be issues…”

What does this mean for Fermilab procurements? We need to plan: plan for potentially higher prices, plan for longer lead times and plan for slower response times from suppliers.

To help you with planning your procurements, the Procurement team has updated its Procurement Action Lead Time (PALT) chart. This chart is available on the Procurement website (Services login required to view).

Please begin using this resource immediately to minimize impacts to your Division/Section/Project requirements.

If you have questions about the PALT, please contact Tom Serafini, who managers Central Procurement, at serafini@fnal.gov or X6760.