• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » How to Deal With Longer Component Lead Times

Think Tank
Think Tank RSS FeedRSS

How to Deal With Longer Component Lead Times

electronic components
July 22, 2020
Jeff Brind, SCB Contributor

Quick and efficient arrival of electronic components is essential for any equipment manufacturer to run successfully, but long lead times are increasingly causing halts in production. Here's a breakdown of today's blockages — and how to deal with the disruption. 

The COVID-19 pandemic. Electronics supply chains were already dealing with component shortages, and these have become even more extreme now, as travel is restricted and certain regions are shut down completely. This crisis might require a complete rethink by manufacturers of who their suppliers are. Transportation of components is also an issue as freight capacity has decreased.

Tariffs and political tensions. There are also reasons outside of the business world for lengthy lead times on electronic components. Tariffs and trade agreements made by different countries can have a huge impact on the availability of materials for production or the products themselves. 

An example of this is the current trade war between the US and China, with tariffs being placed on imports from both sides. The current uncertainty around Brexit is another good example, with businesses cautious about investing too much without knowing what kind of trade deal we will have after we leave the EU.

New and expanding markets. The electronics market is accelerating, with new yearly models of smartphones, the investment in electric automotive technology, and the introduction of smart speakers and home assistants just some of the products causing demand.

Demand is outstripping supply in a lot of situations and the technology is growing faster than manufacturers can produce the components to make them.

Manufacturing limitations. In some cases, manufacturers just don’t currently have the means to produce the components required on a large enough scale. With MLCCs, for example, manufacturers have already reached their limit of how many ceramic layers can be stacked with current equipment.

How should companies deal with longer electronic component lead times?

Supply chains and OEMs can still find ways to operate that will reduce negative impact. 

Work closely with your suppliers — and use forecasting. When it comes to supply chains, OEMs and suppliers should work together to forecast when the highest demand for certain components is likely to be. Using past sales data can give a good idea of when to expect your busy periods, in addition to the times surrounding new product launches. Forecasting means that suppliers can preemptively stock components that OEMs will need well in advance, significantly reducing lead times. 

Be wary of poor-quality and counterfeit components. At times of crisis, it can become more common for counterfeit components to start circulating in the supply chain. More than ever, it is important to be wary and not panic buy components when your company is navigating longer lead times. Instead, still make sure to research thoroughly, always check certifications, and get support from any of your distribution partners.

Be flexible and adaptable. You might encounter a situation where your usual supplier cannot provide the components you need. If this happens, you need to be prepared to look elsewhere. While a simplified supply-chain management approach is best, having qualified and reliable backup suppliers for components is recommended as it gives more flexibility in times of shortages.

Partner with an electronics components distributor. One of the best ways to navigate times with component shortages is to find a distribution partner who can guide you through the difficulties. They will be able to help you source hard-to-find components and take proactive measures to prevent further supply-chain issues from occurring at times when you need to deal with shortages and long lead times.

Those are just a few tips for dealing with the longer electronic component lead times that we are currently seeing. It’s important to keep strategizing and think to the long term as well as just finding reactive solutions.

Jeff Brind is chief information officer at Rebound Electronics, a U.K.-based electronic components distributor.

Logistics Transportation & Distribution Forecasting & Demand Planning Sourcing/Procurement/SRM Technology Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt Industrial Manufacturing

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • karen-jones.jpg

    Watch: Four Industry Disrupters Impacting Logistics

    Data Management (Big Data/IoT/Blockchain)
  • THE SPACE AROUND A COMPUTER KEYBOARD IS CLUSTERED WITH IMAGES GENERIC SHIPPING BOXES

    How Suppliers Can Overcome E-Commerce Supply Chain Challenges

    Data Management (Big Data/IoT/Blockchain)
  • A CSX TRAIN IS SEEN FROM THE FRONT

    CSX’s New CEO Has a Big Idea for Railroads: Carry More Freight

    Rail & Intermodal
  • A ROBOT ARM AND A HUMAN ARM ALMOST TOUCH FINGERS

    AI + SCM: A Formula for Automation and Optimization

    Supply Chain Planning & Optimization
  • A SEATED PERSON HOLDS A SMARTPHONE, SHOPPING

    Retail Consumer Data: The Key to Personalization, or Privacy Violation?

    Regulation & Compliance

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing