Quote:
Originally Posted by jcommin
I work for an automotive company that supplies engine gaskets to the OE and aftermarket. We are primarily an aftermarket company. We are measured by fill rate where the goal is 95% or better and $0 past due dollars (that is current orders that aren't filled).
Current fill rate is at 65% - largely due to purchased parts and raw material shortages. We also have a labor problem - not enough workers. The starting hourly rate was a little over $14/hr in January and 7 months later is $18.50 plus sign on bonus and more money after 12 months of employment. We are also losing people to either retirements or finding better jobs. We had a solid tool/die department and we lost 6 persons to retirement or better jobs. The short term solution is overtime and that has limits too.
What you can't produce, the dollar amount of unfilled orders grows - and we are several million in past due.
There is another problem that is happening. Vendors/ suppliers are prioritizing their customers. The high priority goes to the best customers in terms of either dollars and/or volume. The others get in line. It is the 80/20 rule. We are doing it and others are doing it to us. Of course you can move to the front of the line by either paying a premium or buying a larger order (even though you don't want it).
Our focus is producing the most popular engine gasket sets. That is where the market, money and profit is. And we are having trouble doing that for the reason I stated. So if you are looking foe a product on a non- popular car or engine, you are going to have a problem The car aftermarket biz right now is off the charts and I don't see any improvement this year.
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There must be cottage industry with 3D printers for the limited run, obsolete gaskets.