Dear Colleague,
I hope this letter finds you well and you are enjoying the final days of summer. Our team continues to actively monitor the ongoing supply chain disruptions and we would like to share with you some of the latest trends.
Impact on Your Order
- Patient monitoring parts and batteries in general continue to be the two products most impacted by supply chain disruptions. PartsSource has a direct strategic relationship with suppliers and our supply chain teams are having regular conversations on active backorders and how to minimize them.
- Lithium and other components needed to make batteries continue to be in high demand by more industries, including electric cars and wind and solar energy, which are causing supply shortages. Following a recent public notification, Philips batteries used in certain Philips IntelliVue, PageWriter, SureSigns and Efficia monitors are impacted by this shortage and the batteries are expected to be restocked by early October.
- There is a shortage of defibrillators and limited supply of chest drains with autotransfusion indications and suction canisters, according to the FDA. For help with forecasting needs, regular updates to their Medical Device Shortage list are available here.
Staff shortages impacting productivity
- Employee shortages nationwide continue to impact the rate at which parts are created and orders fulfilled. According to the Stamford Advocate, a recent federal report indicates that labor productivity dropped by the largest margin of record this past spring.
- In a recent 2022 Workforce Institute Survey, 1 in 4 manufacturers stated their production lines are understaffed at least half the time. Our supplier partners have echoed this sentiment and continue to struggle with operating at full staff while they try to fulfill orders.
Shipping delays
- According to the Wall Street Journal, it is taking more than 100 days to move containers from Asia to the U.S. Two years ago, the estimated time was fewer than 50 days.
- Heatwaves and droughts in China are impacting hydropower generation, causing factories to close and shipments to be delayed.
- CNBC reports issues on the ports of both coasts. Empty containers have been sitting at the port of New York and New Jersey for more than 30 days, preventing the delivery of new goods. The Port of Oakland is still moving containers backed up from a July truck driver strike protesting labor legislation. As of early September, the Ports of Los Angeles and Long Beach are experiencing rail delays of 12 days, truck and rail delays of 30 days, and inland rail delays of 5 to 7 days.
Please visit our supply chain resource center for updates and useful information. As always, if you have any questions or feedback regarding these updates, feel free to reach out to me.
Warm regards,
Erin Tournoux
Sr. Vice President, Operations
Sr. Vice President, Operations
Michael Van Derveer
Vice President, Supply Chain & Services