Amidst a global chip shortage, supply chain risk management practices and needed more than ever to mitigate the impacts of these concerns, reports EPT (Electronic Products and Technology.
While some indications point to the global chip shortage beginning to ease, there are still plenty of issues with the global supply chain, including persistent inflation, long backlogs at container ports, and disruptions of goods out of China due to its strict zero-COVID policy.
EPT says supply chain risk management practices such as onshoring (or ‘friend sharing’) production, strategically sourcing from a diversified pool of vendors, consolidating procurement functions, selecting the right level of buffer inventory, and enhancing supply chain visibility, are all proposed levers that can be pulled. Additionally, companies need to develop models for stress testing their supply chain under various scenarios so they can understand how shocks will impact performance.
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.
They conclude: organisations need to develop supply chain resilience, or the ability to withstand and bounce back from disruptions. According to one study, there are 16 different supply chain capabilities, such as flexibility, adaptability, anticipation, and recovery, that contribute to supply chain resilience.
“At the end of the day, the chip supply chain is critical for the functioning of the global economy. Adopting good supply chain risk management practices can help to reduce the impacts of disruptions and enhance security for consumers – ensuring our safety and protecting our way of life.”
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