RME’s Management of Global Supply Chain Disruptions
There are currently a number of factors impacting Original Equipment Manufacturers (OEMs) and their component/parts supply chains in Australia and globally. Increased global demand for complex manufactured inputs, global shipping capacity constraints and port bottlenecks, the ongoing effects of COVID-19 in some countries (especially in China), and the Russian war in Ukraine are unfortunately all causing ongoing significant delays in the manufacture and delivery of Customer orders.
These issues are global in nature and are affecting all OEMs and their parts suppliers. Russell Mineral Equipment (RME) has been monitoring the situation closely over the past two years in particular and taking mitigating actions (see below) to, where possible, minimise any impacts to Customer order delivery times, without compromising product quality.
RME Supply Chain Challenges
In recent months, the supply chain situation has deteriorated further and several of RME’s critical, high-quality input suppliers have recently significantly extended lead times without notice and/or are now unable to confirm order deliveries within normal commercial timeframes.
In particular, RME is currently experiencing material supply chain disruptions to: electrical components (global shortages have emerged for some products); hydraulic parts, fitting & assemblies (leading suppliers have significantly increased lead times); sub-contractor manufacturing (capacity limitations and delivery delays from increased demand and worker absenteeism); and, international shipping & logistics (ongoing shipment delays at local and international ports and fewer direct sailings).
Existing Customer Orders
Regrettably, this is causing additional flow-on delivery delays to some existing Customer orders. Impacted Customers will be contacted via email and notified of any changes to their order timeframe as this information becomes available.
New Customer Orders
RME has increased its range and holdings of OEM spare parts in stock in our Australian manufacturing headquarters, with added stock of frequently used parts available from our Regional Service Centres. Ask one of our friendly team members in your region for information about these in-stock options or contact [email protected]
For Made-to-Order RME Mill Relining System equipment, RME is proactively seeking up to date shipping information for supplier order delivery and sub-contractor schedules. To ensure complete transparency and accuracy of information, quoted lead times on Made-to-Order products have been extended to reflect the impact of continuing supply chain issues.
We are also constantly reviewing lead times to ensure they are as accurate as possible when you place your order. The global supply chain situation however is highly volatile, so further delays against published lead times may occur are advising Customers to order early to maintain stock of critical spares and service/wear parts for RME equipment.
Supply Chain Issue Mitigations
Please be assured that RME continues to do all we can to minimise delays and ensure Customer orders are available or delivered as soon as possible, including:
- paying extra (when possible) for airfreight and priority sea containers for both inbound and outbound good shipments
- increasing order sizes and inventories of common critical parts
- sourcing alternative components from other suppliers, where possible, which sometimes requires significant redesign work
- hiring extra warehouse staff to clear backlogs from our Manufacturing and Regional Service Centres
- increasing communications with our Customers to assist with specific questions regarding their orders
These are particularly challenging times and RME apologises to our Customers for any inconvenience supply chain and shipping delays may be causing. We appreciate your understanding at this time.
For further information and support, please contact your account manager or our attentive Customer Support team at [email protected]
Chief Customer Officer