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Three Ways Electronic Components Industry Leaders Can Prepare
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Three Ways Electronic Components Industry Leaders Can Prepare
Business leaders have come to accept that supply chain volatility will continue for the foreseeable future. As the logistics manager of a West Virginia factory explained about supply chain shortages caused by the pandemic, “No issue is ever solved these days, just managed. It’s an exercise in how flexible you can be in an inflexible world.”Get more news about Brand New Electronic Component,you can vist our website!
None of us can predict the future. Many experts thought the shortages would last for many more months, while others saw that an excess problem was on the horizon. However, there are critical steps electronic components distributors can take to better anticipate and prepare for ongoing supply chain volatility.
With that in mind, here are three tips for industry leaders to follow as they make crucial supply chain decisions for their companies.Absorb information from multiple sources.
Besides consuming news from various sources to stay up to date on the stressors to the supply chain around the world, leaders should focus on staying connected to their peers in their industry and beyond. Hearing first-hand about someone’s factory struggles in Taiwan, for example, gives a much better picture of what is happening on the ground than any brief overview in the news. Ask other leaders on your team to be in regular touch with their trusted counterparts in the industry—be that partners, suppliers, customers or even competitors—to actively listen to the chatter in the marketplace on potential supply chain disruptions.
There have been many times I’ve gleaned valuable information about industry and economic trends just by sitting in on earnings calls and hearing firsthand how companies were dealing with the challenges they were facing. There’s a lot to be learned from industry counterparts and market leaders, and collaboration can lead to a rising tide that lifts all boats.Frequently talking to your customers and making sure you have an ear to the ground will help you be reactive when the market shifts. For example, early in 2021, suppliers and manufacturers were trying to get rid of their excess electronic components inventory. Almost overnight, demand that was expected to collapse exploded, exacerbated by overwhelming demand from the automotive and computing industries. My company's customers were key to helping us understand the whiplash effect, as they began purchasing parts with older date codes just to have enough supplies. Parts that weren’t moving for years were suddenly in high demand and companies that had previously canceled their orders were now left scrambling.
Dig into earnings reports.
Visibility into issues and shortages is crucial, and financials from major corporations can expose trends in the economy and ultimately the supply chain.For example, paying close attention to inventory ratios from major retailers can provide significant insights. In 2021, Nike lowered its guidance for 2022 in its earnings report, saying that the global supply chain hurt its business more than originally anticipated, with production facilities shutdowns in Vietnam proving especially harmful. Last year, companies like Intel shared lower-than-expected earnings due to falling PC demand. Many countries also relaxed their Covid-19 protocols, which has meant fewer factory shutdowns. However, companies with a strong supply chain reliance on countries that have continued to see stricter pandemic-related protocols may face challenges related to export restrictions.
Using a tool like the Panjiva content set, which claims to have profiles on more than eight million companies and over 1 billion shipment records, can help leaders obtain global supply chain intelligence without using their team’s time to do deep dives on individual companies.