Farnell’s president, Chris Breslin, states that as lockdowns lift, effective planning requires greater supply chain transparency.
In the last six months, global supply chains have weathered a disturbance unlike anything in recent history, yet displayed a balance of resiliency and efficiency that has shaped the way we do business now, and how we will continue to do so for the quarters to come.
Lead times are one continued area of uncertainty. We have witnessed a difference between supplier quoted lead-times and actual delivery lead-times and at present, it’s difficult to tell if this is due to freight capacity challenges or production constraints across the supplier base. For semiconductors and passives, supplier-quoted lead-times have remained fairly stable through March to May, with marginal increases across some of the key bellwether product areas such as analog and resisters. Delivered lead-times have begun to increase, but many suppliers are still delivering around two to four-weeks earlier than their quoted lead times.
Recent months have taught us that with careful planning and by driving new efficiencies, you can mitigate some of the unknown that we continue to operate our businesses within. As countries across the globe move to lift themselves out of lockdown, and volumes increase in the new normal, we’re going to see these efficiencies tested to the max. Moving ahead, the need for transparency in supply chains will only grow stronger so that businesses across the globe can plan effectively; I’m confident that companies like ours can lead the way.