24 Mar 2022 -

Supply chain impact: Russia’s invasion of Ukraine

Russia’s invasion of Ukraine impacts many economies, industries and companies, writes the Institute of Supply Management.

The two countries supply crucial metals, rare earth minerals and other commodities that could be hard to source elsewhere, and a prolonged crisis could adversely impact European energy supplies.

There are 14,745 Tier-1 and 7.6 million Tier-2 supplier relationships with Russian entities globally, says ISM. One industry that is affected is chip manufacturing. The impacted region is a key source of mission-critical materials that are used to develop semiconductors. More than 90 percent of the neon used in chip lithography comes from Russia, which is also the primary supplier of neon, palladium and other rare earth minerals to Europe, reports the ISM. Ukraine has been a big supplier of such metals as iron ore, manganese and titanium.

To manage the volatility and uncertainty of prices and supply of critical commodities, it’s recommended to create a plan that includes:

  • A risk-based assessment to determine existing and potential productivity and supply impacts
  • Monitoring suppliers (particularly Tiers 1 and 2)
  • Finding alternate sources of supply, including examining the time to onboard them and logistics consequences
  • Investing in data and technology to facilitate supply chain agility and a more flexible network.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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