Challenges in the Global Supply Chain

How can one deliver high-quality air in an unpredictable and uncertain global market, where everything is equally important and urgent?

On January 30, 2020, the WHO declared COVID-19 a "Public Health Emergency of International Concern". Just a few days after the WHO declaration, Camfil - as an international manufacturer of air filters - established a multidisciplinary task force for the supply chain, consisting of representatives from the company's key departments.

"The task force was quickly formed so that we could act proactively and respond to the anticipated challenges in the supply chain. We began by assessing the current situation and asking ourselves, what needs to be done?", says Christian Olsson, Vice President Group Sourcing, Camfil Group.

Since then, the members of the task force have worked closely with the company's key departments to fulfill a single goal: to prevent disruptions in Camfil's global supply chain. Disruptions primarily caused by the pandemic, but also exacerbated by extreme weather events such as ice storms and tornadoes in the USA, tropical storms in Asia, and a container ship blocking the Suez Canal.

"Since February 2020, we have held 130 task force meetings and launched 17 major and 50 smaller projects to reduce the risk of raw material shortages. This entire experience has been like a marathon," says Christian Olsson. "Our main focus was on ensuring the supply of raw materials from our suppliers to our 31 factories worldwide to guarantee the continuous delivery of air filters."

This was achieved through the implementation of a series of strategies:

- Procurement of materials from both existing and alternative suppliers
- Dividing raw material orders among different suppliers per production site, as well as 20% of orders at other plants
- When transportation disruptions posed particular challenges, demand was placed with two different suppliers to ensure delivery of materials.
- Storage of additional materials both at Camfil locations and with suppliers

Camfil also decided to enter into long-term supply agreements with certain suppliers to support its customers in these uncertain times.

Another key success factor is that Camfil has production sites in many different regions of the world. This allows products to be manufactured closer to the local market. It also provides the opportunity to shift production from one plant to another. The fact that multiple factories can produce the same products creates a redundancy effect – meaning if one factory cannot deliver a product, another can do so instead.

"It was a rapid process in which we collaborated with our suppliers in new ways. Our production sites worked more closely together than ever before. All with the goal of meeting our customers' need for clean indoor air," says Christian Olsson.

He points out that while the pandemic brought significant challenges, it also led to substantial improvements and investments in Camfil's operations, which would normally have taken at least five to seven years.

"We left no stone unturned. The entire experience has generated many new ideas and taught us many valuable things about ourselves as a company. It has brought us all closer together at Camfil. While supply chain disruptions can always occur, we are better equipped than ever to handle such challenges in the future," emphasizes Christian Olsson.