Market developments and challenges: Surviving long delivery times

IE members from the Electronics Manufacturing Services (EMS) cluster were faced with many logistical problems due to the corona crisis, among other things. Increasing delivery times for and availability of electronic components result in problems for electronics production. This is unfortunate, because the demand for electronics production, for which these components are needed, is very high. These market developments require an active approach.

By: Frank van de Ven

The IP industry members of the EMS cluster recently met to discuss this issue. Customers have to wait longer for the produced end products. However, buyers and sellers are in the same boat because they are both experiencing delays. For example, a large number of companies are experiencing delivery problems in the area of components. Although orders continue to come in, it is difficult to get deliveries ready on time.

Companies are trying to accommodate their customers as much as possible and are already sending out part of their orders. The delivery time of components is a huge problem. On top of that, there are the consequences of BREXIT, which, in addition to the problems for English distributors, also causes problems in all major European hubs of the courier companies.

Delivery problems
Customers are aware of the delivery problems and are ordering very far in advance. There is a lot of new order intake, but that is mainly due to covering deliveries. The delivery of components is the number one pain point. Sometimes component deliveries still go to other buyers because of price opportunism. That is annoying. Another development that is visible is that older types of components are being declared obsolete. With resistors and diodes, for example, that is not so bad, but for memories and processors it is (sometimes) difficult. By talking to each other, alternative solutions can be found.

Solution-oriented thinking
The supply of components is a cross-sector problem that requires a solution. This situation affects buyers, sellers and ultimately the consumer. FHI wants to bring parties together and jointly search for solutions. We attempt to do this by exploring possibilities and jointly investigating in which areas we can help each other.

On May 26 at 10:00 am a meeting is planned where EMS members with distributors (and manufacturers) of components. Together we will see where we can help or support each other is the goal. IE members of the clusters EMS and Components can register for this.

Are you an EMS employee or distributor/supplier/manufacturer of components and a member of FHI? Then join the consultation on May 26! Send an e-mail to melvin.brink@fhi.nl to sign up or receive more information.