Sherwin-Williams Deploys Private Fleet to Ease Supplier Transportation Snarls
Paint makers struggled with production last year after a Texas ice storm and other extreme weather events wreaked havoc on the supply of raw materials such as resin. Raw material availability has improved since then, but transportation snarls are now limiting production levels.
“The supply chain has not completely recovered, as the bottleneck has now largely moved from suppliers’ production to their transportation and logistics,” CEO John Morikis said.
Labor constraints and transportation issues have limited production across industries. April inventory levels dropped from March as manufacturing activity declined to its lowest point since July 2020, according to the Manufacturing ISM Report on Business recently released.
- Therefore Sherwin-Williams has deployed its private fleet of trucks and railcars to speed up suppliers’ raw materials deliveries, according to a Q1 earnings call.
- Morikis said SW is using its “own fleet and tank wagons to supplement suppliers’ delivery capabilities” as logistics bottlenecks constrain Sherwin-Williams’ ability to produce paint.
- Logistics delays also have Sherwin-Williams prioritizing certain SKUs and formulations “to make the most of the raw materials that are available to us,” said Morikis.