Rebound Electronics’ COO, Stefan Mason, emphasises that supply chain visibility is more important than ever
The past two years have been marred by the unprecedented disruption caused by a perfect storm of component shortages, trade wars and coronavirus pandemic. This disruption has significantly decreased availability and increased lead times for many products, which can be damaging to manufacturing businesses. Rebound expects the market issues to last well into 2022, potentially into 2023.
Market demand is not going anywhere and even when availability strengthens we expect to see demand increase as confidence that product can be delivered inside 52-weeks (allocation’s magic number) returns.
It is worth noting that you are more likely to experience complexities when your supply chain is itself more complicated. Thus, look to streamline your supply chain where possible.
Having many suppliers to get the lowest prices on individual components can make it much harder to keep track of stock you need and align it with customer or client orders, which will cost money in the long run. Vendor consolidation makes it easier to manage a supply chain and integrate any new processes end-to-end.
While you may not be able to prevent troublesome market conditions, you can prepare by being proactive and aligning yourself with an experienced supply chain partner, like Rebound Electronics.