Security Insights

Navigating the Security Supply Chain Challenges

Written by John Krumme | Aug 2, 2023 3:19:02 PM

The world of supply chain management continues to be a challenge. While many security device manufacturers now strive to provide more precise delivery dates, a welcome change from the ambiguous estimations of the past, the supply chain issues are far from resolved. Price fluctuations, product availability and providing accurate project completion timelines continue to be an issue especially when key product and component availability remains uncertain.

Here are four key areas where end user customers can closely collaborate with their systems integrator partner to overcome these obstacles.

Embrace substitution and adaptation
As supply chain issues persist, businesses find themselves facing a dilemma – to wait for delayed products or substitute them with available alternatives. Many companies are now opting for the latter, swapping products to meet a project timeline. This may require customers to accept the substitute temporarily or agree to partial installations. End users should expect communication from their integrators, including providing continuous updates regarding product delivery and installation dates to assure them of a satisfactory outcome.

Recognize impacts on billing and invoicing
Supply chain disruptions not only affect the delivery of products but also have a cascading effect on billing and invoicing procedures. Because of progress payments based on the completion percentage, businesses must carefully manage their financials. The situation demands transparency and systems integrators need to be willing to clearly communicate with customers regarding payment terms and the timing of payments. Although these challenges may require adjustments, maintaining trust and honesty with customers is paramount.

Monitor price increases
Another significant challenge brought about by supply chain disruptions is the continuous price increases of products and components. Due to the time lag between quoting, approval, and project timeline, businesses can find themselves dealing with cost fluctuations. In this instance ongoing dialogue between integrator and customer is essential in order to address and resolve price changes. Fortunately, most end users have been understanding in this regard, and are cooperating with businesses as they navigate these adjustments.

Honesty over uncertainty
In the face of supply chain uncertainties, some security installers may be tempted to provide overpriced quotes based on vague estimates in the hope of providing a cushion should product pricing or availability changes. However, this approach is detrimental to all parties involved. Instead, honesty and transparency should be prioritized, even if it means admitting that delivery for a specific surveillance camera or access control card reader may take longer than desired. Setting realistic expectations from the beginning fosters better understanding and helps build stronger and longer lasting relationships with customers.

Perhaps the silver lining of the supply chain turmoil is the remarkable patience exhibited by end users. When integrators are upfront about the challenges they face, they generally receive understanding and cooperation in return. This collaboration between suppliers and end users fosters an environment of mutual support, ensuring that projects move forward despite the obstacles. 

As manufacturers strive to provide more specific delivery dates, integrators and installers must remain transparent with their customers about potential delays and price fluctuations. By working together and maintaining patience and understanding, security systems integrators can continue to deliver quality solutions to their customers even amid supply chain hurdles.