At National Bulk Bag, we get a lot of questions regarding lead times on FIBCs. It’s a topic we’ve covered in the past (check out this blog if you want to hear more about lead times or download our case study discussing how National Bulk Bag handles extended lead times on custom bags). It’s an important topic as it impacts how quickly you can get the bags you need to keep your company and facility running at 100%. The last thing you want is your operation slowing (or worse…) because your shipment of bags is stuck in a California port. In this post, we discuss how supplier stock can impact lead times.
Sourcing has the biggest impact on lead times
While inventory management and in-stock bags can greatly decrease lead times, the biggest impact comes from sourcing. Where the bags are manufactured by the FIBC supplier and how far they have to travel inevitably causes the greatest amount of delays. It’s no secret, the vast majority of bulk bags bought and sold in the US market are manufactured in Asia. They are then placed onto pallets, placed into containers, and shipped across the ocean in barges.
All of this is in an attempt to keep costs down. Manufacture them in the US? Costs will go up due to increased labor costs. Ship them via the air? Costs go way up due to increased fuel costs. Bottom line: sourcing bulk bags from overseas is a cost-effective way to get high quality FIBCs to consumers in the US. The negative impact of sourcing from overseas can be effectively managed with the right partner.
The Impact of In-stock FIBCs
The most effective and common way of mitigating extended lead times is stocking a variety of bulk bags at all times. This allows specific bags to be delivered on-demand very quickly and efficiently, greatly reducing the time from order to delivery.
Competent suppliers will stock a variety of bulk bags at all times making finding a suitable bag considerably easier if you’re in a pinch. However, this can create problems when a custom bag with very specific attributes is required. Generally speaking, suppliers will be able to provide a stock-bag in the short term until a custom bag can be sourced.
Regional Warehousing
Regional warehousing is another key piece in mitigating the extended lead times from sourcing bags overseas. By having warehousing located in every region in the continental United States, bags can be delivered quickly from a local warehouse without increasing shipping costs that are often passed onto the buyer. Ask your supplier if they have adequate warehousing, this is great litmus test for suppliers.
This can also be an effective solution to reduce lead times on custom bags. Often times when a custom bag is needed, lead times are extended significantly due to the need to manufacture and transport from overseas. If a supplier has local warehousing space, they can offer to stock your individual custom bag for quick delivery should the need arise.
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Thanks for reading our blog post "How Your FIBC Supplier's Stock Can Impact Lead Times"!
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