Equipment suppliers to the recycling industry discussed the effects of inflation and supply chain disruptions during a panel discussion at the MRF Operations Forum in Chicago on October 18th.
Discussion was moderated by Nat Egosi of RRT Design & Construction, Melville, NY. recycling today Develop event programming.
Panelists included DJ Van Dusen, president of Harris in Cordele, Georgia. Chris Ulum, managing director of National Recovery Technologies LLC (NRT) in Nashville, Tennessee. Pieter Eenkema Van Dijk, President of Van Dyk Recycling Solutions in Norwalk, Connecticut. Chris Hawn, CEO of Machinex Technologies Inc. in High Point, North Carolina. Mat Everhart, CEO of Stadler America LLC in Colfax, North Carolina.
Panelists said inflation and supply chain disruptions are complicating suppliers’ ability to quote firm prices and delivery times.
Harris, which makes the balers, has a policy of honoring quoted prices regardless of delivery deadlines, Van Deusen said. “What it takes is a lot of high level planning on the supply chain and somehow being able to hedge that naturally with material availability,” he said.
“And secondly, at the time we are quoting, we can be clear about what the production and delivery slots are,” continues Van Deusen. “Part of it is the competition between quotes in circulation. [The] The next delivery slot is next June. It’s the best and whoever joins first gets it. If I call tomorrow, it may be July. ”
He added, “We don’t like being in that position, but you can’t make an infinite number of machines in a given month, so that’s the basic approach today.”
Hawn of Machinex, which offers sorting systems, optical sorters, robots and balers, is doing what customers once believed was a sales strategy: order now and get the best deal and delivery time. said to be the reality today.
Given supply chain issues, the quotes made by Machinex will be valid for the specified period, with the understanding that some bids will require longer timeframes, he said.
Today’s issues that affect a manufacturer’s ability to meet delivery dates are also a priority for Machinex’s transparency and communication with customers, Hawn said. “Managing with the customer and speaking openly at the beginning is the way to success.”
Stadler’s Everhart agreed. “We need to communicate often early in the process” about the situation and how the company is working to address it, he said.
Stadler is a system integrator and manufacturer of ballistic separators and trommel screens for use in MRF.
As for raw materials, Everhart said Stadler is trying to maintain sufficient inventories. As those stocks near depletion, Stadler uses the index to price future lots and update potential customers accordingly.
“The component aspect is more important because we can’t control people who aren’t working for us,” says Everhart. “Motors will have lead times for gearboxes, electrical components, VFDs, etc. [variable frequency drives]— Raise your hand if your VFD didn’t deliver on time this year. I have to tell you the situation. …we need to make sure the customer knows that we just don’t want that. This is what I am trying to do to serve you as my potential customer. These are things I have no control over. And this is how I try to encapsulate your risk. ”
Van Dijk says his company’s approach to estimating delivery times varies from customer to customer.For customers who have a history of ordering quickly after being quoted, the company provides delivery times in their quotes, he said. [about the order], does not specify the delivery date. ”
To address fluctuations in component and material availability, Ulum said the quotes NRT makes are valid for a limited period of time and the company employs a first-in, first-out approach.
“By working closely with our supply chain and having a supply chain management lead, we can stay on top of the costed bill of materials and make sure it is reflected in the latest quotes. “
Van Dijk said he did not expect supply chain problems or inflation to improve in the fourth quarter or next year. “The price of steel is going down, but not the parts.”
Van Dyk Recycling Systems is a system integrator and distributor for manufacturers such as Bollegraaf and Tomra.
NRT’s Ulum agrees, and we don’t see much change next quarter. This supply he chain situation we’re in doesn’t change from week to week, month to month, quarter to quarter. This is an annual problem that we are trying to solve. ”
He notes that NRT, which manufactures optical sorting technology, and its parent company Bulk Handling Systems (Eugene, Ore.) have been working with some of the supply chain players for decades to provide real-time demand forecasting. He added that proactive communication, including: Essential. “We also had to take inventory positions that we don’t normally do. We had to look at risk building as well as risk buying to offset and hedge the risks built into our supply chain.”
On the issues keeping the panelists up at night, Van Deusen said they are on the production side of the business and labor is the biggest issue.
Ulum indicated that hiring talented people for the manufacturing and service side of the business is a concern. “Finding, securing, training and retaining talent will be the biggest thing that keeps me up at night.”
But that same labor shortage is also an advantage for the companies participating in the panel. “This is great in terms of driving demand for automation,” he said Ulum. “This is him one of the many tailwinds to this industry.”
Van Dijk said obtaining spare parts for manufacturing was his biggest concern, followed by hiring and retaining service personnel.
Availability of personnel and spare parts was also a concern for Everhart. He said he continually reviews his Stadler parts inventory and encourages the company’s customers to maintain their own parts inventory.
