You might not be able to see them, but supply chains are at the heart of all manufacturing operations. They connect suppliers, distributors, and customers.
So, what happens when things go wrong? Like when materials are in short supply, shipments are delayed, and costs are on the up and up?
In this blog, we’ll explore how supply chains work, common causes of disruption, and why building a more resilient supply chain could mean the difference between staying competitive and falling behind.
How Do Supply Chains Work?
The supply chain is a complex, interconnected system that encompasses production and distribution processes relating to a product. In other words, it’s the series of activities that turn raw materials into a product with value and then see that product delivered to the customer or end user.
Most supply chains have this distinct, two-phase structure:
- Production: Materials are manufactured to create parts, and parts are assembled into finished products.
- Distribution: The finished products are delivered to central and regional distribution centers. From there, the goods are collected and transported to end users — whether that’s via a brick-and-mortar store or directly to their front doorstep.
8 Key Players in the Supply Chain
Supply chains rely on several key players to operate:
- Producers that grow, raise, and harvest raw materials.
- Suppliers that provide essential raw materials, components, or ingredients to manufacturers.
- Manufacturers that produce parts and finished products.
- Logistics and freight companies that transport products from manufacturers’ warehouses to distribution centers, retailers, or directly to consumers.
- Warehousing and storage providers who ensure products are stored properly before they’re transported.
- Retailers that sell finished products to consumers.
- End users or consumers who are the recipients of the goods and whose demand drives the supply chain.
- Regulatory bodies that enforce compliance with environmental and trade standards
How Are Businesses Impacted by Disruptions?
Supply chain disruption occurs when a link in the chain is delayed or unable to operate.
Supply chain disruptions don’t just impact consumers. They completely upend businesses, too. Let’s unpack some of the most common causes of disruptions, and how they impact businesses.
What Causes Global Supply Chain Disruptions?
- Changes in demand: The market can shift in the blink of an eye. Consumer sentiment changes, products fall out of favor, or new trends take over. A drop in demand can lead to overstock and price drops, while a rise can trigger material shortages, price hikes, and delays in production and transportation.
- Labor shortages: Many stages of the supply chain depend on skilled workers. For example, in manufacturing, a lack of workers can delay production schedules. These delays ripple throughout the entire supply chain, pushing back transportation and limiting product availability.
- Material shortages: Whether due to increased demand or unfavorable conditions, material shortages cause production slowdowns. This creates bottlenecks and leaves businesses scrambling to meet deadlines.
- Natural disasters: Hurricanes, earthquakes, floods — you name it. Natural disasters bring production and transportation to a grinding halt.
- Geopolitical tensions: Trade agreements and shifting regulations can create barriers, especially for supply chains operating across borders. Political instability or tariffs can slow movement and increase costs.
- Unexpected world events: Some events, like the COVID-19 pandemic, are impossible to predict. These disruptions expose vulnerabilities across global supply chains.
4 Key Ways Disruptions Affect Businesses
At the end of the day, it’s a manufacturing business’s goal to turn a profit. Supply chain disruptions threaten that objective — here’s how:
- Costs can skyrocket from multiple angles. For example, raw material shortages might force a business to pay a premium for supplies or work fast to find alternatives. This often leads to shipping delays and the associated costs. Geopolitical disruptions add another layer of complexity — if regulations shift and a business fails to comply, financial penalties or trade barriers could follow.
- Production timelines stretch when raw materials or components are delayed. This can cause bottlenecks, pushing back other processes and leaving idle equipment or labor. In some cases, longer production times even lead to inconsistencies in the final product.
- Using alternative materials in response to shortages can result in defective parts or subpar products. Additionally, logistical delays can leave perishable or sensitive items like medicine and food compromised, becoming unsafe or ineffective by the time they reach consumers.
- Delays have a domino effect and result in bad customer experiences. If goods don’t arrive on time, customers lose trust and take their business elsewhere. A poor reputation snowballs, making it even harder to recover lost sales or attract new customers.
Real-World Examples
Here are a couple of real-world examples of supply chains and how they handled disruptions.
Johnson & Johnson
Johnson & Johnson (J&J) is a global healthcare giant with a supply chain so strong it fared better than its competitors during the COVID-19 pandemic.
When ventilators were in short supply, J&J’s Ethicon division used 3D printing to produce ventilator expansion splitters in just 10 days. At the same time, J&J repurposed manufacturing lines to churn out hand sanitizer. Demand for Tylenol skyrocketed, and J&J stepped in. It ran production lines 24/7 to keep shelves stocked.
Walmart
Walmart is the world’s largest retailer. It uses RFID tags for real-time inventory tracking and analytics to forecast demand to create an efficient supply chain. Cross-docking — a practice where products go straight from incoming trucks to outgoing ones — eliminates unnecessary storage and speeds up delivery.
Consider Building Resilient Supply Chains
Resilience is important to businesses because it’s not a matter of whether disruptions will occur but when. There’s no getting around the fact that the world will continue to throw curveballs your way.
The best thing you can do is prepare — expect the unexpected.
So, what does a resilient supply chain look like? Here’s what they include:
- Diversified suppliers
- Inventory buffers — safety stock that makes sure production doesn’t come to a standstill during delays
- Data-driven strategies
How does supply chain resilience change your business for the better?
- Stay ahead of financial changes: You can be more prepared against financial losses thanks to fewer vulnerabilities.
- Maintain production timelines: With backup plans and adaptable systems, disruptions have less impact on your production timelines. This keeps goods moving and maintains customer satisfaction.
- Continue getting products in customers’ hands: Customers value reliability. A resilient supply chain ensures they receive products on time, even during crises.
How We Can Help with Your Production
At Hawk Ridge Systems, we offer companies additive and traditional manufacturing services.
When it comes to creating more resilient supply chains, manufacturing-as-a-service options can help businesses reduce waste and avoid production disruptions and delays, especially for companies that have manufacturing services overseas.
If you’re looking to bring additive manufacturing in-house, we offer powerful 3D printers to help you build a more agile factory floor:
- Markforged FX10: An industrial 3D printer with dual-material capabilities for composite and metal, allowing you to produce stronger, customized parts for end-use or tooling.
- Markforged FX20: An industrial 3D printer designed for high-strength, high-temperature parts at large build volumes. Ideal for the automotive and aerospace, and defense industries.
- HP 5600 Series: A multi jet fusion 3D printer designed for high-volume projects at incredible speeds, so you can scale production and reduce turnaround times.
Contact us to learn more about our partnership with A3D Manufacturing or our 3D printers.
Sources
- J&J’s Tylenol production at maximum capacity as coronavirus boosts demand. Accessed February 2025.
- Global Supply Chains in a Post-Pandemic World. Accessed February 2025.
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