Chris Cinieri is a project manager with Polaris MEP. He spoke with Providence Business News about the complications in supply-chain demand due to COVID-19, the true value of a strong domestic supply network, and how the MEP national Supplier Scouting program has risen to the occasion.
Going outside the U.S. to look for materials for items to manufacture things such as personal protective equipment isn’t always the best bet, he says.
PBN: Are there particular areas in manufacturing that are seeing more supply shortages than others?
CINIERI: Anything related to the production of PPE is in high demand right now: textiles for gowns; elastic for face masks; plastic for face shields; and caps for hand-sanitizer bottles. There are companies here in Rhode Island that produce these items. Many are working expanded hours to keep up with demand. Despite the local effort, we are still hearing from companies that need to source material nationwide.
The good news is that the material is out there. Harnessing the strong domestic supply chain allows these companies to continue producing these critical items.
PBN: What are some of the benefits of having a strong domestic supply chain?
CINIERI: Lower transportation costs come to everyone’s mind, but there are other areas that deserve attention as well. Building a strong domestic supply chain means keeping and creating jobs here.
Furthermore, many people don’t realize that quality standards vary widely around the globe. The Wall Street Journal reported that 60% of the imported N95 and K95 masks tested by the National Institute for Occupational Safety and Health were substandard. They filtered out less than 35% of particles – even when advertised to meet the U.S. standard of 95%.
At best, inferior quality can turn away customers by creating rework and time delays. At worst, it can harm our front-line workers who rely on PPE every day. While price can sometimes make overseas sourcing attractive, if you look at the true cost, there are many benefits to domestic supply.
PBN: What about manufacturers who have pivoted to produce a COVID-19-demanded item, such as face masks – are they starting from scratch when it comes to finding suppliers?
CINIERI: Companies that were producing for automotive applications, sports-protective equipment and retail goods faced a decision when demand sharply decreased as a result of COVID-19: Shut down or pivot toward making critical PPE. For some of these companies, the materials they needed came from their existing supply chain while others needed to start from scratch. They needed to develop a supply chain and turned to the National MEP Supplier Scouting Program.
PBN: Can you explain the Supplier Scouting program – when it was started, by whom and how it works?
CINIERI: There is a nonprofit Manufacturing Extension Partnership center in every state, helping manufacturing companies remain competitive through strategic consulting and training. The MEP staff work closely with manufacturers, so they know who is making what, where. The National MEP Supplier Scouting program was started during the Obama administration to leverage the knowledge of the MEP National Network.
There is an unfortunate narrative about manufacturing – that it is in decline or gone in the U.S. – and that’s not true. Yet, when a manufacturer has a need, they often look globally first, assuming the component is either no longer made here or made cheaper elsewhere.
Through the MEP Supplier Scouting program, companies can reach out to Polaris MEP. The company fills out a brief questionnaire with information such as the type of component they seek, necessary specifications, applicable standards, estimated volume, etc. I submit the request to the network and each state identifies domestic suppliers who could fill the request. The manufacturers are vetted before being referred, saving time and energy. The end result is a list of possible national sources who have the capabilities and capacities to provide our Rhode Island companies with the materials they need.
PBN: Is a disruption such as the coronavirus something any manufacturer could have planned for in terms of having adequate supplies at the ready?
CINIERI: Many manufacturers have business continuity plans that address different types of disruptions to include supply-chain needs. In New England, it’s typical for companies to have plans for hurricanes, floods, cybersecurity ransom attacks and so on. A proper continuity plan should include diverse backup suppliers – and relationships should already be established.
The COVID-19 situation is unlike anything we’ve seen or dealt with before because it hit so many parts of the world at once. By the time it was clear what was happening, everyone was scrambling to find alternate suppliers. We recommend companies take what they have learned in this crisis and apply it to their continuity plan, so they prepare themselves for a future supply-chain disruption.
Susan Shalhoub is a PBN contributing writer.
