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Supply chain threatened by electronics shortage

May 29, 2020

More than half of electronics industry product launches have been delayed or canceled due to the pandemic, reports E-Commerce Times. Sourcing issues were the cause of product launch delays, according to 91 percent of those surveyed.

The article references a new study “2020 Trends in Electronics Sourcing,” by SupplyFrame that indicates that COVID-19 has led to increased component costs, the need for manufacturers relying on the global electronics value chain to rework their products, and the inability to fill customer orders.

“The report’s findings are especially problematic for a challenging economy under greater pressure to drive new business revenue and protect margins, ” says E-Commerce Times.

“The path to solving component sourcing issues requires integration of engineering, sourcing, finance, and supply chain teams, including external partners,” said 95% of respondents.

This points to the importance of de-risking as early as possible in the design cycle, the report notes.

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