A Strong Banking Relationship Can Help Mitigate Supply Chain Challenges
Last year, business owners across Southern California dealt with a range of challenges, from COVID shutdown orders and securing PPP funding to cameos from toddlers on video conference calls.
Among ongoing COVID concerns, now the focus is on labor shortages and supply chain issues. In one example, the global supply chain struggle created new hurdles for longtime Torrey Pines Bank client Gil Martin, owner and founder of Martin Furniture, a successful manufacturer based in San Diego.
In recent decades, industrial efficiency was guided by the implementation of “Just In Time” manufacturing, with supplies ordered on an as-needed basis, minimizing the need to stockpile materials. This allowed companies to adapt to changing market demands, while cutting costs. However, the pandemic has caused a worldwide shortage of raw materials and continues to hinder shipping operations, leaving numerous manufacturers low on materials and hard-pressed to meet customer demand.
Torrey Pines Bank SVP Mark Lee has worked hand in hand with Gil Martin for several years, addressing the company’s banking needs through a variety of economic cycles. When banker and client connected to discuss current supply chain challenges, the two were able to work together to craft the customized solution Martin Furniture needed.
“Because client needs ebb and flow depending on many factors, our bank’s deep-seated understanding of clients’ businesses allows us to address their changing needs effectively,” said Lee. “Our expertise and responsiveness at Torrey Pines Bank are key to helping our clients adapt so they can achieve their goals.”
As industries began to grapple with supply chain issues, Lee moved quickly to adjust Martin Furniture’s advance rate and increase their line of credit so they could order larger quantities of materials at one time and build up inventory to compensate for shipping delays.
The result? With quarterly inventory now far surpassing year-end 2020, Martin Furniture is able to capture and fulfill more online sales than ever before. Their revenues are on track to increase sizably over the last year and the company has seen record profitability amid the pandemic.
“Our strong relationship with Martin Furniture illustrates how a solid banking partnership can help a business move forward,” said Lee. “It’s the driving force behind our ability to quickly address clients’ changing business needs, which can make a real difference for companies in every economic cycle.”