If your company largely depends on electronics components for operation, you’re well-aware of what’s happening with the latest component shortage. For those that are less privy to this information, electronics components such as DRAM and SRAM, NAND, and more are in short supply, largely because of the giant technological leap and mass production of new products that require these components to operate – namely, the iPhone and Nintendo products.
With the continuation of rising prices and increasing demand enough to make your head spin, we have some tips on what you can do to adapt and overcome the electronics component shortage while you wait for it to end once and for all.
1. Identify Alternate Options
While choosing components for your products, you should attempt to identify alternative options that can easily be switched if your ideal components become next to impossible to source. While utilizing alternate parts may not strike you as the easiest option, it can help your company avoid becoming caught in the supply-chain crunch down the road when components are scarce and have lead times that extend several months.
2. Partner with Multiple Distributors
You may have chosen to partner with a specific distributor and even talking to other distributors may feel like a complete betrayal, but this is really a big part of being strategic in business. Otherwise, you could miss out on an opportunity to get your orders placed and delivered on-time, simply because you’re loyal to a single distributor.
3. Adapt to Change
With demand for electronics components increasing and no end in sight for the industry-wide shortage, a necessary option is to adapt to the changes happening now, so companies can be prepared sufficiently in the future. There’s no guarantee that a shortage won’t happen a few years from now. Ensure your purchasing supply chain managers have the necessary tools and information for additional up-front planning
4. Work with the Right Manufacturing Partner
While you should continue to monitor industry trends, another way to cope with the electronics components shortage is to choose the right electronics manufacturing company, like Kodiak Assembly. When you work with a company that knows the scope, supply list and is aware of the status of electronics components.
Tight supplies are expected to last well into mid-2018 or beyond. If you’re an impact planner within your organization, it’s advised that you shouldn’t wait to place orders. Keep a close eye on lead times and surging demand within your industry. To get ahead of demand, you need to talk to your contract manufacturing partner sooner rather than later and do not attempt to “wait it out.” Though it seems like there is an end in sight, there’s no telling what the rest of the year will hold for electronics components.
Kodiak Assembly Solutions has developed manufacturing and assembly solutions with our customers’ business goals in mind. Our experience lies in our experienced team, our state-of-the-art machines, clean facility, and quality-centered processes. If you’re concerned with growing lead times for many electronics components, it’s important to contact us to place your orders before lead times grow too long.