Management + Systems

By Bindiya Vakil, CEO and co-founder, Resilinc 

From the Covid-19 pandemic and labour shortages through to natural disasters and geopolitical disruptions, the fasteners industry has certainly not been immune to the challenges presented to global supply chains.  

Despite the challenges of recent years, the fastener sector is experiencing significant growth as the market regains momentum. Statistics¹ suggest that the global industrial fasteners market was valued at US$92.16 billion in 2021 and is expected to reach US$131.56 billion (€123.2 billion) by the end of 2031. In addition, the sector is estimated to grow at a CAGR of 3.2% from 2022 – 2031 with the biggest CAGR growth this year predicted to be in the construction sector, fuelled by an increase in building projects globally – as projects previously delayed by Covid-19 are put back on the agenda.

With a significant proportion of standard commodity fasteners manufactured overseas, especially in China, it is essential that supply chain risks are properly identified and managed in order to prevent delays and backlogs, which will invariably create a chain reaction of problems further up the supply chain. The solution to this issue lies in improved supplier mapping.

Identify supply weaknesses 

Mapping, combined with ‘real time’ event monitoring, enables businesses to get ahead of any potential disruptions that might occur. Businesses cannot overcome any weak links in their supply chains, if they cannot first identify where these weaknesses lie. That’s why mapping supply chains down multi-tiers should be the first priority of any business. This provides a ‘bird’s eye view’ of the supply chain through employing the latest AI, Cloud and enterprise network technology. Once supply chains have been mapped, they should then be monitored, giving businesses the edge in their ability to react to any supply disruption and mitigate its impact – or even avoid its impact altogether.

Fastener businesses that regularly conduct analysis of their supply weaknesses can take swift measures to address any blind spots and prevent problems occurring that could have significant impact on not only their business, but that of their customers too. 

Mitigate safety risks

Mapping and monitoring suppliers also has the additional benefit of giving a business insight into whether health, safety and environmental standards and regulations (ESG) are being followed. This is beneficial in two ways, first, it means suppliers can be held to account if they are not following ESG requirements in their region, which continues to pose a risk to businesses who can find their supply chains paralysed if violations around labour, pollution or safety are discovered. For this reason, investing now in multi-tier mapping and monitoring a supply chain is the proactive measure to avoid costly disruption in future. 

Second, and of particular relevance to fastener businesses, is that supplier mapping ensures that suppliers are operating as safely as possible, reducing the impact of fires and other accidents. As Resilinc’s 2022 annual report highlighted, factory fires were the number one supply chain disruption for the fourth year in a row. Additional data from Resilinc’s 24/7 monitoring system, EventWatchAI, also reveals that 59% of fires were caused by faulty machinery and equipment. This is why the impact of unmonitored supply chains should not be underestimated, especially considering that nearly half of these fires (47%) caused medium or even high levels of damage upon factories and sites.   

Identify cyber risks

As a general rule before most businesses appoint suppliers, they carry out some degree of IT security due diligence. To identify any potential ‘weak’ links in the chain when it comes to cybersecurity, businesses should treat their supplier network as an extension of their own business when it comes to cybersecurity risk mitigation.  

The fastener sector is certainly not immune to the risks of cyberattacks, although it is an area that is often overlooked. The use of smart technology has undoubtedly enabled manufacturing businesses to enhance their operations, productivity, and management, but it has also opened up the door for hackers to significantly disrupt or even completely halt production. By identifying and tackling cyber risks, businesses in the fastener industry can ensure that they are resilient to potential attacks, making them a ‘safer’ supplier choice. 

An example of this was reported in Faster and Fixing Magazine last year, when a cyber attack affecting David + Beader GmbH (DBK) knocked out its existing on-site systems and backups. The attack posed a significant risk to the production and delivery times. By working quickly with industry Cloud company Infor, it was able to migrate to a more secure Cloud-based system within weeks, allowing it to ramp up production as quickly as possible – whilst also providing the business (and its future customers) with a more resilient and robust system.

Supplier network visibility is a crucial factor in helping businesses to manage the uncertainties of trading in the global marketplace. Mapping and monitoring supply chains serves to identify potential risks in order to be able to take action quickly to minimise disruption. For businesses operating in the fastener industry, it is essential to recognise the importance of supply chain visibility and the role of maintaining reliable, robust and efficient operations.