14 Apr 2020 -

Supply Chain Issues – OEMs battle a perfect storm

indian supply chains

Across the world, manufacturing companies are struggling to maintain electronics supply continuity, battling against a tide of components shortages as well as sudden and wildly fluctuating product demand.

How are OEMs dealing with this perfect storm? Some clues are offered by an article in Source Today.

The most important action is to gain visibility of your supplier’s suppliers – the tiers 2 to 4. Most US companies are unaware that they are exposed to Chinese factories idled by the outbreak, it says, adding a statistic from Bain & Co that estimates that 60% of executives lack any supply chain visibility beyond their tier one suppliers. “1,800 manufactured parts originate in the quarantined areas of China that are centered around Hubei province,” reports the article. 

The report makes it clear to get in early with orders, suggesting that as China starts ramping up again “demand could surface … as companies there start placing orders again for domestic consumers who can go outside now after a dismal February.” On top of this, India has made emergency moves to secure airlifts of components from China, all with the goal of containing the fallout in electronics manufacturing. 

Astute Electronics – Bringing you Safe Supply with the latest insights from trusted sources.

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