INDUSTRY. SUPPLY ROUND TABLE
and negatively affects our profitability. Repairs also take longer to complete due to spares shortages. LIAM WIFE: Due to our team’s passion for its diverse range of clients and work, we have seen supply chain issues affecting others – however, we’ve been very fortunate in our pragmatic approach following our launch to ensure early ordering on items we know might be delayed. Our senior leadership team and technical managers have strong relationships with all the major T1 distributors, which has meant that we have a clear understanding of any constraints and have worked these into our planning. As a result of this, we manage to avoid any hardware issues at supply level affecting our work or clients. Are these issues purely as a result of Covid-19, or are Brexit and the cost- of-living crisis playing a part? HB: Covid-19 was definitely the starting point of the supply chain issues. Brexit is more problematic from an RMA perspective – when we need to get replacement parts or products. A lot of our vendors don’t hold spares in the UK any more, and our clients can’t afford to do without key tech while parts get held up in customs. BB: These are definitely a hang-up of Covid-19. Brexit means the previously avoidable costs of preparing carnets now make hiring to mainland Europe more expensive – so much so that we have practically stopped renting out to European companies, which is a shame and further affects business. LW: We believe Covid-19 and Brexit play a large part, however the cost-of-living crisis has substantially affected staffing and recruitment. Many people are choosing to stay with existing employers rather than changing, in order to avoid the unknown during these times of general uncertainty. Where people are changing employers, we’ve also seen a consolidated approach to be closer to their place of work, reducing costs as well as commuting times. Are you limiting how many products are manufactured or in stock, or is there a workaround to suit both supply and demand in an unpredictable market? BB: We have not taken any concerted decisions to reduce stock lines due to availability shortages, though we are now more mindful that new products
It is well known that semiconductors and the raw materials needed to manufacture them have been in short supply for some time. How has this affected your business – and are there more pressing supply chain issues challenging you at the present moment? HOLLY BONSER: During Covid-19 we went from an average order-to-delivery time frame of around one month to six months on some products. Supply has generally improved this year, but we’re still facing shortages in the audio and network switching spaces in particular, as manufacturers aren’t able to source the necessary core components. While these supply chain issues have been challenging, a lack of information is more difficult to work around than a lack of product. As a systems integrator, we have over 30 vendor partners and an enormous range of products that we use to create solutions for post-production facilities. Our projects rely on multiple vendors delivering to a time frame, so one missing element can compromise the entire delivery. We can plan around long lead times due to supply chain issues, but this becomes almost impossible when manufacturers aren’t able to provide delivery time frames. This has a knock-on effect across a range of other business activities. For example, the components of an audio console are delivered to Jigsaw24 Media in approximately 60 different boxes. Previously, these would all be shipped together and our professional services team would then build and deliver the console to the client within a couple of weeks of receiving the delivery. Now, these components are being shipped in bits and pieces over time as they become available – which not only extends our overall project delivery time, but also puts pressure on our warehousing and storage facilities. We’re then left footing the bill for products that have arrived while we wait for delayed components, as we have to wait much longer to deliver the full solution and invoice the client. BARRY BASSETT: The delivery of some products has been delayed to the point of extreme frustration – on occasions we’re waiting up to a year for delivery. We’re all sensitive to global supply issues and allow more time when ordering new products. With new production lines, however, it’s not always possible to know exactly what accessories are required, so this means new products take longer for delivery, then have to be fully accessorised and ready for hire. This reduces revenue
HOLLY BONSER Procurement manager Jigsaw24 Media
BARRY BASSETT Managing director VMI
LIAM WIFE Operations director and co-founder Origin Film and Television
48. DEFINITIONMAGAZINE.COM
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