hardware supply chain challenges

The beleaguered hospitality industry is the latest victim of the pandemic-induced worldwide shortage that has disrupted the manufacturing of cars, smartphones and more.

Semiconductors are the foundation of modern life and a marvel of technology. With the world gripped by the pandemic, semiconductor-enabled technologies allowed us to stay connected, treat illness and work remotely. As much of the world shutdown, semiconductors enabled the gears of the global economy, healthcare, and society writ large to continue spinning.

Unanticipated demand for semiconductors needed during the pandemic response, coupled with significant fluctuations in chip demand for other consumer goods, triggered a rippling supply-demand imbalance felt across the world.

The semiconductor shortage has caught up with POS suppliers. The lead time on POS terminals and peripherals is on the rise as manufacturers scramble to get components, with many not expecting forecasted production to meet demand until mid-2022.

Backlogs in chip production aren’t the only problem feeding the overall shortage. Increased shipping timeframes and costs, as well as the availability of cargo containers, are contributing to the extended delivery times. Unprecedented flight suspensions have disrupted air cargo flows leading to even more sea cargo; at a time when worldwide demand is at a peak.

Delays at ports globally, the continued shortage of cargo containers and increased congestion have increased shipping costs exponentially. The cost of hiring shipping containers to transport cargo has surged by more than 300 per cent over the past year (ABC).

What our suppliers say:

Sektor: https://www.sektor.com.au/covid-19-updates

Goodson: https://www.goodson.com.au/covid-19-update

Relevance to you – Best Practice for Preventing Future Problems 

To weather supply chain issues, production delays and increasing hardware and freight costs, many of our customers are taking proactive steps to reduce the risk of delays including placing orders further in advance to accommodate the longer lead times. With supply incredibly tight, just-in-time purchasing isn’t feasible. 

Other steps have included upgrading individual components and when hardware is out of stock or has an extended lead time, selecting viable alternatives.

What are we doing?

We continue to discuss stock availability with our suppliers daily including sourcing alternate products. MSL has also purchased equipment in advance to carry stock but these items are not sitting on the shelf for long. Get in touch so we can help you minimise any disruptions.