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How Global Supply Chain Issues are Impacting Field Service Businesses

January 18, 2023

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Spare parts shortages prevent timely service delivery.

This is an urgent wake-up call for businesses providing field services as the global supply chain is disrupted in unprecedented ways. This has been in the spotlight lately due to the ongoing global economic downturn, which has been further exacerbated by China’s strict COVID-19 control measures.

These restrictions severely hindered the production of essential electrical components such as microchips, which are used in everything from automobiles to dishwashers and satellites. Companies worldwide were affected, with many service businesses experiencing staggering delays while they waited for parts they needed to fill shortages in their stocks.

It had far-reaching effects and caused significant supply chain disruption, ultimately magnifying expenses while dragging down profit margins and field service productivity. Most field service businesses now face shortages and backlogs due to these global supply chain issues. Let’s take a closer look at how this is impacting field service businesses.

Increasing Prices for Parts and Materials

One of the biggest impacts that global supply chain issues are having on field service businesses is an increase in prices for parts and materials. Since production in many factories was scaled back or shut down due to the pandemic, fewer parts and materials are available, resulting in higher prices as consumer demand exceeds supply.

This disruption to the global supply chain can be disheartening, especially for small business owners in the field service industry. Increased prices due to decreased availability of parts and materials greatly affect their bottom line. Fortunately, companies of all sizes can work together to find creative solutions that are cost-effective and reduce the impact on small business operations.

By leveraging relationships with existing suppliers, negotiating for bulk discounts, and finding high-quality alternate suppliers, there may still be opportunities available to keep costs down without compromising on quality. It is important now, more than ever, to band together as a business community and find innovative solutions.

Backlogs and Delays

For field service businesses, backlogs and delays due to global supply chain disruptions can be incredibly impactful. Many parts that were once readily available on the market can no longer be found, resulting in longer wait times while both existing and new orders remain in the queue, waiting to be filled and shipped from overseas manufacturers.

This can cause significant delays in projects and lead to frustrated customers forced to wait for repairs or services to be completed. To resolve this issue, field service providers can collaborate with customers regarding which projects might be placed on hold or rescheduled without inconveniencing them. By showing flexibility and working with customers to find solutions, business owners can demonstrate their commitment to providing excellent customer service, even in times of unpredictability.

Resource Allocation Challenges

Resource allocation is an increasingly important challenge for businesses in today’s strained global supply chain environment. With parts becoming hard to find and prices increasing, companies have had to make difficult decisions about which jobs should take priority over others or be postponed until parts become available again.

Subtle differences in resource allocation can create massive implications down the line and require accurate predictions regarding cost and operational efficiency. It is up to individual businesses to navigate this complex issue, weighing the costs and benefits of their decisions, as they strive to maximize their resources during these unprecedented times.

To address these supply chain issues, field service businesses must take proactive steps and devise inventive solutions. This includes such measures as reallocating parts from locations that have excess stock to locations that have inadequate inventory, retrieving unused parts from technicians, and restoring damaged parts to a quality deemed equivalent to new. These processes can not only better manage existing resources but also promote sustainability.

Reputation Damage

When promises fall short due to supply chain bottlenecks, businesses can suffer extensive damage to their reputations which is incredibly hard to recover from. In today’s competitive marketplace, nothing is more important than customer trust and loyalty. Without it, long-term success for any business is impossible.

Lost Revenue

When customers encounter issues with the supply chain and can no longer access consumer goods or services they need, they will begin to look elsewhere. This kind of disruption can be especially problematic for service-based businesses that rely on the timely delivery of products or services, such as construction companies or furniture retailers.

Not only will these businesses miss out on revenue, but a negative reputation may follow if customers aren’t satisfied with the service and delay in product fulfillment. To mitigate the risk of lost revenue due to global supply chain issues, service-based companies should build strong relationships with suppliers both local and international to ensure that there is consistent access to quality supplies.


Supply chain problems are on the rise for field service businesses around the world—from increasing prices for parts and materials to backlogs and delays—all of which could potentially affect your bottom line if not addressed quickly and efficiently.

By staying informed about current trends in international shipping and resource allocation challenges affecting your industry, you can help ensure that your business remains competitive despite these turbulent times. With careful planning and strategic action, you can keep your business afloat while still providing quality services to your customers.


Shivasankari Bhuvaneswaran
Shivasankari Bhuvaneswaran

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