Recent events have put much of the world on hold. This includes many of the manufacturers of the components used to create a number of electronic devices and widgets. While many manufacturers have returned to business as normal, component shortages could still pose a problem as everyone scrambles to catch up. It’s important that OEMs learn how to deal with potential shortages both now and in the future.
Component shortages occur for several reasons. Before taking any steps to remedy issues with the component supply chain, organizations must first understand the factors responsible for the current shortage. OEMs can then make an informed decision about how to best handle the situation.
Purchase Components in Advance
Organizations need to make sure they have sufficient cash flow to pay for components in advance. Some components have lead times up to fifty weeks. Purchasing in advance can save organizations a lot of trouble on future projects.
Utilize Trusted Partners
Today’s markets change rapidly. Many manufacturers have begun prioritizing larger customers. It’s important to make sure your organization has the resources to fulfill large orders, especially during periods of high demand.
Understand Potential Lead Times
Certain components may have lead times up to fifty weeks. This can cause delays when bringing products to market. It’s important that OEMs learn as much as they can about potential lead times so they can better understand the types of delays they may face in the future. Armed with the right information, OEMs can provide the best options to their customers.
Transparency during the production process is important to the overall success of any project. A quality CM provides clear answers about component delays and the reasons behind them.
Forecast Component Needs
Creating a forecast of component needs ensures everyone has a clear understanding of the project requirements. This keeps everyone on the same page and ensures the CM knows what is expected and when.
Southern California CM
Means Engineering offers contract manufacturing services to OEMs and other organizations looking to increase quality and reduce time to market. Our team has years of experience and understands what works and what doesn’t when it comes to electronic component design. Please contact us for more information about our services.
