International – Strategies to Prevent Component Shortages During a Crisis

After years of economic expansion and a solid start to 2020, manufacturers found themselves suddenly, early in the year, in the middle of a global crisis with COVID-19. Its effects on manufacturing have been varied, but deep. Here are some ideas for recovery.

COVID-19’s impact on manufacturing has created a number of business roadblocks, including order cancelations, large fluctuations in demand, supply chain issues, and reduced production capacities. Additionally, even when components were available, many companies found that closures and partial closures caused drastic shortages, increasing back orders and extending lead times further and further out. This impact isn’t over and is expected to last for months more, especially with the threat of a second wave of outbreaks.

Catching up with production schedules even once businesses get back to full throughput may stretch out even longer than originally expected. The scale of this global disruption is unprecedented, and the lack of proven concepts leaves many companies scrambling. The result is that businesses around the globe and across different industries are looking for new approaches and are sharing best practices. Collaborating across internal department boundaries and extending the communication to involve global partners, customers, and vendors will help companies navigate the extensive challenges and will enable the industry to recover quickly and as efficiently as possible…