Interview Story - Overcame Challenge

When I was the Materials Manager at KCC Manufacturing I collaborated with KCC engineering to select and approve an all-in-one transformer manufactured by a foreign supplier to replace 2 separate transformers used in KCC’s HVAC units. The distributor offering this single transformer to KCC was a partner KCC had been doing business with for years and they consistently delivered quality products on time.

I communicated the timeline of the switchover with this distributor; however, given their solid track record with us, I did not schedule my usual biweekly meetings to ensure the new transformer would deliver when promised. Unfortunately, due to a series of events including a worldwide shortage of a transformer component and miscommunications between the distributor and foreign manufacturer, freight forwarder and customs brokers, the new single transformer did not deliver per the agreed upon schedule.

Without the transformers, the units could not be finished, which would partially shut down our manufacturing line, at a cost of over one million dollars per week.

So that we could continue manufacturing and shipping HVAC units, I consulted with KCC engineering on alternatives. We determined the best option was to temporarily use an older technology.

In the meantime, I received daily estimated time of arrival updates of the new transformer from the distributor. Unfortunately, after two more weeks of delays, the distributor continued to have communication issues with their foreign supplier and could not offer a solution from another source.

It became clear that this long-time distributor couldn’t deliver. We would need to find another way to get these supplies.

I contacted another distributor we used for electrical parts and explained that we needed to find a transformer from a domestic source that could meet our cost, quality, and delivery requirements. They referred me to a supplier that seemed promising.

I communicated frequently with this supplier, worked with the supplier and KCC engineering to have samples tested and approved, and ensured that deliveries were on schedule. With these successes, we switched over our HVAC units to their new all-in-one transformer. The domestic transformer manufacturer continued to meet their delivery commitments in the coming months and years, and we had no further issues.

In the end, there was zero interruption to our manufacturing. The new transformers were brought on two months late, at a slightly higher cost but with a far lower risk of disruptions to our supply chain. We also built a long-term supplier partner that has helped us to manufacture transformers for other products. And I learned that even with trusted partners, to stay on top of the process because anything might go wrong.