02 Feb 2022 -

Supply chain resilience strategies for handling shortages – SAP

A new paper by SAP looks at how organisations can respond to damaging semiconductor shortages. ‘Maintaining Business Continuity During Periods of Semiconductor Shortages’ highlights supply chain resilience strategies for organizations to consider implementing for business continuity.

Key points from the paper, written by Jeff Howell, Vice President, High Tech Industry Business Unit, SAP, include:

  • Today’s global semiconductor shortage is not only widespread across industries. It is also expected to be long lasting. Many believe it will extend into 2023.
  • This is not the first chip shortage, and it will certainly not be the last. Demand and supply are constantly out of phase.
  • Organisations need to simultaneously work across three different time horizons: the immediate, the near term, and the long term. By doing so, they can help ensure revenue continuity, fulfil customer expectations, and achieve greater resilience.
  • In addition to timely and accurate data analysis, other activities that are critical in the immediate time horizon include visibility, collaboration, and exception management. Network-wide collaboration is also critical.
  • For the near-term horizon (6 to 12 months), the paper describes three activities that can help bring relief to stressed processes by implementing new tools and redefining existing processes.
  • In the long-term horizon (12 to 18+ months), the paper focuses on the need to establish greater resilience: The goal is to withstand future shocks to the semiconductor industry while keeping the demand and supply curves in phase.

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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