Chip Shortages are Here to Stay - Be Ready to Respond
The Pandemic has exposed multiple weaknesses in the supply chain – how to prepare?
We have seen numerous stories about the microchip shortage and its effect on a wide range of industries, perhaps most notably automobile production. Unfortunately, this shortage, and others like it, were not one-off COVID-19 side effects. They uncovered some fundamental problems with the way supply chain management works - or more accurately - does not work. Many years of experience in supply chain visibility and predictive analytics have given us a unique perspective on the situation, and what should be done about it by enterprises.
Just in time, Not right for the times
Buy Local - Not just a short-term trendThe COVID-19 pandemic exposed the vulnerability of global supply chains with extensive dependence on China. In addition, the political climate everywhere is making countries look more inward. With all of these trends, supply chains and their domestic components or lack thereof will also contribute to rethinking on the part of the supply chain professionals.
Truly Understand Your Supply Network to Thrive
At Tada, we think of the supply chain as a supply network - one which relies not on link-by-link connections, but on a broad array of supporting relationships, which is best managed through deep analysis of patterns, histories, current needs, and smart projections for the future. Using data and artificial intelligence tools, it is possible to be prepared for unusual changes in global conditions, markets, and customer behavior.
Whether planning for microchips, rubber, or any critical manufacturing component, supply chain decision-makers must clearly know what is required to make and move their products; know the lead times involved in procuring those items, and they must build a purchase strategy that covers the long term. For many, this means a radical rethinking of their current business and procurement models and corresponding restructuring if they intend to survive the twists and turns in the road ahead.