furlough our staff at all and did a very, very small RIF (reduction in force),” says Steve Maahs, president and COO of Alto-Shaam. “Thanks to a continued focus on employee empowerment and putting people first, we have been able to retain our valued family members. Our material stocks are also in good shape as well. By planning ahead and forecasting growth in 2021, we mitigated significant supply shortages, minus some unanticipated transportation issues that we’re all dealing with.”
Perlick, meanwhile, has benefitted from being in both the residential and commercial space. “Throughout the pandemic, our residential line continued to see strong sales as homeowners remodeled their homes and, in particular, their outdoor living spaces. Therefore, we shifted our focus to our residential division until the commercial division rebounded,” says Heather Shannon, senior brand marketing manager at Perlick.
A focus on hiring associates and the addition of a second shift at its factory in Milwaukee helped Perlick accommodate the recent commercial surge, but process improvements had already begun well in advance. “Prior to the pandemic, Perlick began a review of the physical organization in our factory in Milwaukee,” Shannon says. “We are shifting production equipment, inventory, workstations and dock staging using lean manufacturing guidelines as well as Baldridge performance excellence criteria to improve throughput, quality management and associate potential while mitigating uncertainty and bottlenecks.”
Extending Lead Times
The disruption of the supply chain has made extended lead times tough to avoid, even despite a forward-thinking mindset. “Even though we were very proactive in increasing our orders before the demand hit us, some of the components we purchase carried extended lead times even before the pandemic,” Means says. “Those manufacturers have a difficult time improving their capacity even with what most would assume to be adequate notice. We are feeling that downstream impact but thankfully, have not experienced material rationing that other segments of our industry have.”
“Each week, we communicate to our staff what our lead times are by product category, so they can take that communication to reps, dealers and customers.”
— Steve Maahs President and COO Alto-Shaam
It is a plight that is familiar to Maahs. “We began adjusting our material safety stocks and reorder points very early to help mitigate the lengthier lead times our suppliers are giving us,” he says. “Yes, our lead times are extended, but based on the feedback I get from staff and customers, they are significantly better than most in the industry.”
For her part, Shannon credits Perlick’s products being made in North America with helping to insulate the company from some of the supply chain issues many have experienced. “However, we have had to increase our lead times, primarily due to a large increase in orders rather than supply chain shortages,” she says.
22 FEDA News & Views
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