Confronting the hidden costs and challenges in your electronics supply chain
There can rarely have been a time when procurement was better able to demonstrate the value it brings to an organisation, or under more pressure to cope with unexpected challenges. The global pandemic has placed supply chains around the world under strain, impacting both availabilities of stock and transportation; something that has only been exacerbated by the recent Suez Canal blockage and, in the UK, by the impact of Brexit.
The electronics sector is also having to contend with a global semiconductor shortage, brought about by rising demand as the economy picks up, and the rollout of new technologies in the form of 5G, the internet of things and electric vehicles. Raw-material rises, increased logistics costs and disruption to ocean freight have also added to the pressures on prices.
In many sectors, this has led to inflationary pressures, as demand outstrips the availability of supply. But while the headline price of many items may increase over the coming months, there are a number of ways in which procurement can bring down – or contain – overall costs, by tackling the hidden costs associated with their supply chains and ensuring they are operating in as efficient a manner as possible.
