From Chaos to Control: Learn MES’s Secret to Supply Chain Resilience

In the wake of a devastating explosion at a magnesium aluminum die-casting factory in China, MES Inc. faced a critical challenge. The cause of that explosion was volatile magnesium dust that was ignited. After the explosion, the local Chinese government halted all manufacturing in the surrounding area. That surrounding area included the site of one of MES’s top manufacturing partners, Suo’ao. 

 MES was faced with the challenge of either halting production or moving all the tooling within the plant to accommodate. The decision was simple, we moved. This move, necessitated by safety concerns and logistical challenges, tested the resilience and adaptability of the entire team. Here’s how MES rose to the occasion by highlighting their ability to thrive in the face of adversity. 

 Reasons for Tooling Relocation  

The magnitude of the task was significant. Over four transfers, MES relocated 96 sets of molds, strategically distributing them among alternative suppliers. From essential production molds to those required for upcoming orders, each transfer required meticulous planning and execution. To mitigate the impact of the disruption, MES identified alternative suppliers based on proximity, production capacity, and customer alignment. Tooling found new homes with suppliers such as Yongtao, Haihong, and Mirui, ensuring minimal disruption to production schedules and customer deliveries. However, this moving of the tooling did not come without its challenges. A dedicated team spearheaded the relocation efforts, demonstrating exceptional coordination. Without their efforts, this transferring of machinery would not have been possible. Here are some of the challenges they faced during the movement of machinery. 

Challenges Faced 

Any time a company must adapt to an emergency there are some initial communication hurdles to convincing the customer of the necessity for the move. In addition, negotiating pricing, assessing supplier capabilities, and ensuring the integrity of transferred tooling were among the initial obstacles encountered. All these challenges can be viewed as part of the greater hurdles the company faced, which include overcoming adversity and demonstrating resilience. However, right after the explosion, MES was soon to find out that there was another challenge around the corner. 

 Post-Chinese New Year, it was evident that production had not restarted as expected since the explosion, signaling a significant operational disruption. Here is what MES did to combat this problem:  

• Formed a Task Force: A dedicated team comprising members from Supply Chain (SC), Sourcing, and Quality departments across the US and China was swiftly assembled.
• Brainstorming Solutions: The team explored various strategies, including maintaining tooling on-site and engaging with local authorities to secure permission to resume operations.
• Monitoring Developments: Vigilant observation of the evolving situation ensured that the company remained informed and ready to act.
• Decisive Actions: To minimize the impact on customer production lines, critical tooling began to be relocated
• Tracking Progress: A comprehensive tracking sheet was developed to monitor:
• Production Demand: Ensuring that production needs were met despite the challenges.
• Tool Movements: Keeping a close eye on the relocation of die casting tools, trimming tools, gauges, and more.
• Pricing: Adjusting and recording any cost changes resulting from the operational shift.
• APQP Requirements: Aligning with Advanced Product Quality Planning standards throughout the transition.
• Customer Re-certification: Managing the necessary steps to maintain customer trust and product integrity.
• Regular Updates: The tracking sheet became a vital tool, updated daily during the initial phase, then gradually reduced to three times a week, twice a week, and currently once a week as the situation stabilized.

Through these concerted efforts, MES not only navigated through an unforeseen crisis but also demonstrated an unwavering commitment to its clients and the robustness of its contingency planning.  

Overcoming Adversity  

Through a combination of top-level negotiations, transparent communication, and proactive risk management, MES tackled each challenge head-on. Decisive action, coupled with meticulous attention to detail, ensured that setbacks were addressed promptly, and the relocation process remained on track. The successful relocation of the tooling in the aftermath of the explosion underscores MES Inc.’s commitment to customer satisfaction and operational excellence. By embracing adversity as an opportunity for growth, MES not only seamlessly handled this challenge but emerged stronger and more resilient than ever before. This hands-on, proactive approach to problem-solving is a stark contrast to the traditional methods companies use when they go direct.  

 When companies go direct, they often rely heavily on phone calls and emails to communicate with suppliers, which can be time-consuming and inefficient for troubleshooting problems. In contrast, an organization like MES benefits from having “boots on the ground”—our quality and engineering staff are strategically located near our suppliers, enabling them to physically visit the factories. This proximity allows for immediate, hands-on assistance in identifying and resolving issues, leading to faster and more efficient problem-solving. By being on-site, our team was able to quickly assess the situation, implement solutions, and ensure that production continued smoothly, minimizing downtime and enhancing overall productivity. 

Conclusion  

In times of crisis, the true measure of an organization’s strength lies in its ability to adapt and overcome. MES Inc.’s response to the aftermath effect of a manufacturing plant explosion displays the company’s ability to demonstrate resilience, agility, and unwavering dedication to excellence. As they continue to navigate the ever-evolving landscape of global supply chain management, one thing remains certain – MES Inc. stands ready to face any challenge that comes their way, fortified by experience, expertise, and an indomitable spirit.