The global electronics supply chain is facing its biggest challenge in years, with disruptions exceeding even those seen during the pandemic. Houthi militant attacks in the Red Sea are forcing major shipping companies to reroute vessels, causing delays, capacity drops, and impacting companies like Tesla and Volvo.
The situation is compounded by an unprecedented drought affecting the Panama Canal, further squeezing shipping capacity. As companies seek alternatives, some are even turning to rail transport through Russia, highlighting the complex workarounds necessary in this volatile environment.
To navigate this upheaval, EPS News suggests:
1. Execute contingency planning: Utilise real-time data to identify vulnerable suppliers and quickly assess alternative options. Mitigate concentration risk by diversifying suppliers and considering nearshoring for critical components.
2. Know and mitigate risk domains: Employ holistic risk management solutions that assess cyber, compliance, financial, operational, reputational, and climate risks across all third parties. Automate processes and leverage centralized platforms for efficient and defensible risk management.
Building resilience requires a proactive approach. By understanding and mitigating risks, manufacturers can navigate disruptions and ensure long-term operational stability. The time to act is now, before the next inevitable blow hits the already strained supply chain.
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For more help with looking at supply chain options, contact Astute Electronics
