{"id":20169,"date":"2022-07-08T09:27:16","date_gmt":"2022-07-08T13:27:16","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=20169"},"modified":"2022-08-08T14:38:09","modified_gmt":"2022-08-08T18:38:09","slug":"3-strategies-for-managing-long-lead-times-while-facing-high-demand-and-rising-prices","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/shortage-mitigation\/3-strategies-for-managing-long-lead-times-while-facing-high-demand-and-rising-prices\/","title":{"rendered":"3 Strategies For Managing Long Lead Times While Facing High Demand and Rising Prices"},"content":{"rendered":"

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When demand hits all-time highs and prices are rising, it’s time to get serious about strategies for managing long lead times.\u00a0<\/strong><\/h2>\n

Many specialists in the chip market predicted 2022 as a strong year for sales, with long lead times and rising prices continuing to put pressure on buyers. Currently we are seeing longer lead times in a wide variety of in-demand parts, with some lead times dramatically beyond the norm. MOSFETs are in particular demand, with 2-year wait times. With the average semiconductor delivery slowing to 26.2 weeks<\/a>, semiconductor shortages continue to make major impacts on discrete supply chains worldwide. When demand is high and prices are rising, it\u2019s time to get serious about strategies to manage long lead times. Here are three strategies you can deploy.<\/p>\n

1. Strategies for managing long lead times: Sourcing alternatives<\/h3>\n

Alternatives suitable for your build are not always possible, but when they are, they can offer solutions for sourcing hard-to-find parts. There are a few directions to take when sourcing alternatives. Accessing franchise lines through an independent distributor can provide the parts you need on an improved timeline, but sometimes there are minimum price and quantity considerations. Evaluating your bill of materials for options to source alternatives is a good place to start, but time is of the essence when it comes to sourcing alternatives. Starting now to build relationships and determine appropriate options is the best way to stay ahead of long lead times through sourcing alternatives.\u00a0 <\/span><\/a><\/p>\n

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2. Smart approaches to building safety stock<\/h3>\n

When alternatives are not possible, sourcing through an independent distributor can connect your needs with exceptional quality components available at better time frames. Sometimes that sourcing can happen from a strategic distance by acquiring safety stock. Safety stock lost prominence as just-in-time dominated the manufacturing world, but with unprecedented, ongoing shortages, safety stock is coming into focus again. A few considerations can help determine whether to bolster it. For example, do you need to insulate against not just long lead times, but price fluctuations? Is your supply chain likely to feel the impacts of global disruptions, such as COVID-19 and the ongoing war in Ukraine, or extreme weather? And are you vulnerable to rapid obsolescence cycles? With the merging of semiconductor fabs occurring globally, many lines will continue to drop, resulting in waves of obsolesces that will add yet another layer of challenges to the current shortages.<\/p>\n

3. Selling excess to free up space and capital<\/h3>\n

Surprisingly, in the current market, your excess might command far more value than expected if you can find the right match. The opposing perspective on safety stock is that once a shortage ends, the necessity and value plummet. Failure to take prompt and smart action on resolving excess is critical. Having safety stock protects businesses during shortages, but can cause harm once they end. Another motivator is that with shortages affecting such a wide range of products, your inventory might have made a significant value jump \u00ad\u2013 if you find the right buyer. Even for the most minor of parts in this market, there\u2019s the potential for eager buyers just a connection away. A proactive approach allows you to take full advantage this option, including sorting through inventory with older date codes. Valuable components in your inventory might hide in plain sight due to the unprecedented shortages we are seeing at the moment.<\/p>\n

With the spotlight shortages, we will continue to explore strategies for meeting your sourcing needs. Evaluating your specific supply chain situation and coming up with proactive strategies for managing long lead times to ensure successful sourcing is more important than ever. <\/span><\/p>\n

Read more<\/strong><\/p>\n