In the past two years, CE Pro has added the category of supply chain mitigation in the CE Pro Quest for Quality Awards due to all the product delays and backorders. The supply chain crisis hit manufacturers in every industry from cars to computers to home furniture in addition to the shortage of chips and other electronic parts, and companies in the CE channel were far from immune from these pressures. However, Vanco International earned some special appreciation from CE Pro readers’ – and a Platinum-level Quest for Quality Award – for its supply chain response.

We sat down with Mark Corbin, president of the parent company to Beale Street Audio, PulseAudio and Evolution, to ask how the company managed not only to work through this crisis but continued to develop new products and solutions amid all the challenges.

How did Vanco react as it became apparent supply chain problems were going to elevate and persist?

“During the pandemic, we saw smaller scale supply chain issues. We were having trouble getting copper cables made, and we saw shipment dates getting pushed past our normal comfort level.

“It opened up our eyes to how easily we could be impacted if other pieces got delayed. That led us to a deep review of our ability to get products. Eventually it led to reforming our entire program and restructuring our order process.”

What methods did Vanco employ to reassure dealers that their customers would have product in a timely manner?

“Many manufacturers rely on their factories to supply the chipsets needed to make their products [instead of procuring them directly from the chip manufacturer]. That’s not an uncommon practice by any means. However, our team wanted to ensure products were not being delayed waiting for chipsets.

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“We made blanket orders for chipsets with several of our suppliers, which helped ensure that production at the factory stayed on schedule. While we had never handled ordering that way, we weighed the risk and determined that the financial outlay would be worth it in the long run.”

Did you make any other adjustments to your processes that you think influenced integrators’ votes in this Quest for Quality Awards category?

“We took a risk and decided to bring in six months’ worth of inventory, which we don’t normally do. That took a big effort both for the team internally and with our suppliers. We were fortunate that placing orders like this helped build a more significant relationship with our vendors – they knew we were reliable, and we worked incredibly hard to forecast our orders in a way that gave them a schedule they could follow.

“Relationships drive success for both manufacturers and dealers. It all boils down to communication.”

Have you made any personnel/role changes or additions to address the supply chain situation?

“A key part of our success has been having more hands on the ordering process, the lead time process and the shipping quotes. We realized that someone really needs to be monitoring the incoming and outgoing orders to have eyes on those lead times. Are they improving? Where are we seeing issues and how can we solve for them?”

What can custom integrators and suppliers learn from the supply chain crisis?

“Business owners don’t have a crystal ball, none of us could have predicted what the last few years would look like but having the flexibility and prioritizing the resources to change course made all the difference.”

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