Get Creative! Supply-Chain Management Update

Paul Rasband, M&A/supply chain director for Alsco Uniforms, oversees these and other issues for the company’s international headquarters in Salt Lake City. Textile Services Weekly recently interviewed Rasband – along with other industry experts – on supply-chain trends in the COVID-19 era as background for an upcoming article on this topic. The following are excerpts from our recent discussion with Rasband on the shifting supply-chain scene he sees in today’s markets for linen, uniform and facility services operators.

Are supply-chain delivery times now mostly back to pre-COVID levels?

Mostly, yes. The inventory levels our key suppliers hold on key products are not fully recovered to pre-COVID levels, but deliveries are much improved as compared to the same time in 2022. Products (such as laundry equipment and delivery vehicles) that are dependent on computer ships are still experiencing extended delivery times.

Have shipping costs from overseas stabilized, or are they still higher than before the pandemic?

We have seen ocean freight costs stabilize in Q4 2022 and freight rates from Asia to West Coast ports have returned to pre-COVID levels. Ocean freight costs to East Coast ports remain slightly elevated from pre-COVID levels, but also were reduced in Q4 2022. We have also seen port congestion clear up in both West and East Coast ports. I keep hearing about ground-freight costs declining and improved service, but we have yet to see those reduced costs and improved service.

How severe is the ongoing problem with a shortage of computer chips for equipment?

Chip shortages are at least partially responsible for extended delivery times for new equipment and delivery of new vehicles. In addition, chip shortages have extended lead times on rebuilds of existing equipment.

Does coordinating more closely with vendors help to avoid bottlenecks?

It depends. Clear and precise communication is always helpful, as it appropriately sets expectations for both suppliers and purchasers. However, clear communication and better coordination is not going to help product that is shipping to a jammed-up, nonfunctional port like LA/Long Beach was for much of 2022. We were able to coordinate with some suppliers to use alternative West Coast ports, such as Vancouver, BC, that did yield improved and more consistent product deliveries.

Have you expanded your base of supplier sources to cope with the recent shortages?

We have always done business with a narrow group of suppliers but cast a wide net to have relationships with many alternative suppliers. During the 2022 supply-chain crisis, we did business with a number of additional vendors/suppliers out of necessity, and the wide net paid off, as we were able to call on companies we were familiar with and that were familiar with Alsco Uniforms. The supply-chain crisis in 2022 required a creative approach to difficult challenges. We did many things we would not normally do. For example, there was a period where there were shortages of black napkins. To address this shortage, we were buying white napkins and immediately dying them black to meet our black-napkin demand. We would have never considered this approach before COVID.

Does automation of port facilities, so that they work 24/7, hold out an opportunity for better performance?

I support any initiative that is going to make U.S. ports function more smoothly and cost effectively. I think automation will improve port operations. However, the 2022 port congestion was not solely or even primarily a problem with getting containers off ships. There were significant issues with the associated ground transportation (rail and over-the-road trucks) leaving the port. I personally think the biggest U.S. freight challenge is a narrowing base of over-the-road-trucking with tractor/trailer owner-operators being impacted by increasing government regulation (both state and federal).

Watch for more on supply-chain trends from a range of operators and supplier partners in April’s issue of Textile Services magazine. Visit www.textileservices.org for more information on TRSA’s award-winning monthly publication.