Electronic Component Lead Times Postponed By A Wide Range of Factors

Longer electronic component lead times are not what all supply chain businesses want. However, we have been coping with this for a while. Therefore, it is time for all supply chain distributors to learn which factors cause the lead times to be longer. Additionally, they can also learn about what to do to deal with it.

Electronic component lead times

Factors that directly cause the lead times in supply chain management to be longer

Below here are all factors that have an influencer on the electronic component supply chain lead times:

The technology for manufacturing is still limited

In some contexts, electronic component manufacturers cannot produce the required components for the technological stuff due to having no methods.

Besides, the growing tech is in need of numerous stacked layers on every chip. In other words, the time for yielding the chips will take longer and this directly causes the electronic component lead times to be longer.

Electronic component lead times are also affected by the continuous growth of the markets

Technological markets keep expanding and growing. Therefore, electronic component lead times need to follow them for sufficient supply.

Due to the rise of smartphones, smart devices, as well as modern home assistants, electronic demand is quite high. Even prior to this rise, lots of electronic components have been applied to applications. They could be resistors, capacitors, transformers, etc.

This makes manufacturers unable to yield the components to make those components in time. Thus, this also leads to untimely electronic component lead times.

Electronic component lead times in the context of enterprise combinations

It is quite common and true to say that companies always have a chance to be merged into each other or into lots of enterprises. This usually happens to small firms being purchased by bigger corporations.

In this case, supply chain management will be interrupted, causing the lead times for electronic components to be delayed.

Tensions from politics in countries

Lead times on electronic components can also be delayed and lengthy due to tensions in some countries. Some countries start to impose tariffs on imported items, and businesses from various countries make a decision on operating their business somewhere else. Besides, they are incapable of purchasing the same amount as they used to before. As a result, it leads to the insufficiency of electronic suppliers and OEMs.

Advice for lengthy electronic component lead times

When it comes to the lengthy electronic component lead times due to the factors mentioned above, we have some advice that we think you can follow to fight against those challenges.

For instance, electronic component manufacturers should come up with good strategic outsourcing as well as recycling materials. Besides, they should also advance some potential manufacturing approaches and make them more effective to avoid untimely lead times.

Additionally, for supply chains, businesses of OEMs and suppliers can make use of past sales data to forecast the busy periods of the markets, especially when the demand for some electronic components is high. By forecasting busy periods, suppliers can be well prepared for emptying the stocks. This also helps them optimize the lead times.

STRADE – a trusted partner in the electronic supply chain, OEM, and ODM available in China, Japan, Malaysia, Hongkong, Singapore, Taiwan, and Vietnam – understands the seriousness of lengthy electronic component lead times. Therefore, we always follow the advice mentioned above to make sure the lead time processes are guaranteed and well-managed. We are also ready to prepare solutions to shortages as well as long lead times to bring the best results possible to all businesses.

STRADE – YOUR TRUSTED PARTNER

• December 2, 2022
• News
• skyperry

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