{"id":19399,"date":"2021-12-06T12:07:34","date_gmt":"2021-12-06T17:07:34","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=19399"},"modified":"2021-12-06T12:30:26","modified_gmt":"2021-12-06T17:30:26","slug":"a2-insights-predictions-strategies-2022","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/electronics-news-trends\/a2-insights-predictions-strategies-2022\/","title":{"rendered":"Thriving in the New Normal: A2’s Insights, Predictions, and Strategies for 2022"},"content":{"rendered":"

Looking ahead to 2022, Stephanie Han, A2\u2019s Vice President of Global Procurement, offers insights, predictions, and strategies for how to thrive in the supply chain’s \u2018new normal.\u2019<\/h1>\n\n\n\n

2021 put global supply chains to the test. The electronic components industry went through a hard shortage and still weathers such conditions. We saw a shortage of microcontroller units (MCUs)\u2014the chips critical to automotive manufacturing\u2014beginning in March 2021. As 2021 progressed, we saw supply issues in a broader range of discrete products from consumer electronics to industrial equipment creeping up and continuing to create problems for our customers.<\/p>\n\n\n\n

While we are starting to see those MCU shortages decline, we anticipate no end to the demand problems for discrete products until well into the summer of 2022, possibly extending to the end of the year.<\/p>\n\n\n\n

Predictions: Looking ahead to a new normal<\/h2>\n\n\n\n

There\u2019s a lot to unpack behind these shortage predictions. For one, COVID surges continue to cause global trouble. Even with exciting global health developments like the Pfizer pill<\/a> on the horizon, we are unfortunately seeing problems like breakthrough infections and steep case increases in countries where critical semiconductor fabrication work is done.<\/p>\n\n\n\n

With the small number of fabs globally, uncertainty around the pandemic\u2019s next phase could further destabilize production of integrated circuits. Looking ahead to 2022, with events like the rise of variants on the horizon, COVID will continue to provide a catalyst for changing cost differentials.<\/p>\n\n\n\n

Furthermore, the global scope of the supply chain will continue to magnify the impact of seemingly disparate events. Global trade container ships are a good example. Even retailers are now buying their own containers for shipments. As logistics challenges show no sign of abating, the close of 2021 offers little hope for improved deliveries worldwide. At the same time, disruptive events, like the power outages<\/a> in China and inflation<\/a> in the United States, give global supply chains no respite.<\/p>\n\n\n\n

Despite current road bumps, MCU demand will continue to go up, but shortages will likely not reach the levels seen this year. At this point in 2021, the analog market is tight and we predict the more general products of the discrete market will only get tighter. Passive electronic components are, interestingly, not as tight as anticipated; lead times are high but demand is not outpacing supply.<\/p>\n\n\n\n

At the end of the day, the cost structure of components after shortages will settle out, but it will be different. We are looking at a new normal.<\/p>\n\n\n\n

Strategies: Combating supply chain disruption<\/h2>\n\n\n\n

To tackle these shortage predictions, consider putting the emphasis on stability, speed, and resilience in 2022.<\/p>\n\n\n\n

Broaden your approved vendor list<\/h3>\n\n\n\n

When allocation problems come up, the quicker the reaction, the stronger the recovery. One of the best ways to gain resilience is to widen your approved vendor lists. For most discrete products, you are only working with a handful of approved manufacturers. There are a lot of strong options available, and the broader the list the better access you will have to supply. With that comes better pricing and allocation options.<\/p>\n\n\n\n

Build your capacity for speed<\/h3>\n\n\n\n

Quicker decisions are a must going into 2022. Delayed decisions will mean higher prices. Quality distributors with solid relationships are key to this. Surprisingly, having a long list of potential suppliers will not prove as beneficial as a few trusted relationships. Working with many suppliers might yield savings in the short term, but in shortage conditions having one or two dedicated partners will ensure better service and commitment to capturing available supply to keep production lines moving.<\/p>\n\n\n\n

Benefit from varied supply chains<\/h3>\n\n\n\n

With all of the demands on the supply chain, act now to reconfigure buying strategies and make purchasing more nimble. Adding more varied players to your supply chain provides one good option. Independent distributors occupy a critical spot in the supply chain, offering OEMs a better view of supply and demand and feet on the ground globally<\/a>.<\/p>\n\n\n\n

We will leave you with a cautionary note: excess inventory<\/a> is inevitable. If the shortages we are seeing now were caused by a failure to plan, what will the aftermath look like? There are opportunities to identify and act on strategies to strengthen your own position but also support global supply chain health. We can worth together to make 2022 a success. <\/p>\n\n\n\n

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