As the whole global supply chain continues to be impacted by the COVID-19 outbreak and evolving global pandemic situation, suppliers are predicting longer lead times and manufacturing disruptions. Like most sectors, the audio industry overall was strongly affected, and manufacturers are continuously readjusting lead times, trying to manage supply delays. The whole supply chain for audio manufacturing is being constrained by shortages in key components, microcontrollers and signal processors, extending lead times and raising prices.
In recent months, new logistics challenges have caused more delays and cost increases as the acceleration of Delta-variant outbreaks in several countries has slowed global container turnaround rates. Shipping companies are now charging up to ten times the normal price to move cargo, forcing large and small manufacturers to prepare contingency plans and revaluate their cost and price structure.
As Mike Klasco wrote in a recent article for The Audio Voice newsletter, "When we left 2020 behind, there was a global sigh of relief. I think on some level many of us felt we had paid our dues and that we deserved smoother sailing in 2021. And then, key production bases for the audio industry were hit by storms, container ships at sea lost their cargo in rough water, and nations were battered by earthquakes and volcanos! As if that wasn't enough, while vaccination campaigns promised some relief for a few countries, others who had seen relatively COVID-related closures started to be caught in a series of pandemic waves as the virus' variants challenge even the most determined governments, affecting the manufacturing hubs in Asia."
This "perfect storm" of recent events is expected to continue to impact a wide range of vendors, as the chain reaction continues to be felt, and the general finished goods supply will be tight. Preparing for disruptions, ordering additional buffer stock of critical items, sourcing alternative suppliers, and upgrading designs to accommodate new components is now recommended.
For an insightful overview of this dynamic situation and advice on how to deal with these serious challenges, in this new AES Audio Product Education Institute webinar we will hear from Matthew Martin, the Managing Director of Emporium Partners, based in Shenzhen, China, and from Alexandre Viaux, General Manager of Seltech Asia, who has worked in China for more than 10 years. The two executives will detail how their organizations are dealing with the supply chain shortages, what to expect for lead-time on different parts/brands, and what mitigation strategies can be put in place.
Emporium Partners is a tier 1 independent distributor of electronic components, headquartered in Denmark, with offices and logistics locations in Asia, Europe and USA. Seltech is an international solution provider with deep expertise in microspeakers, loudspeakers, specialty transducers, and sensors.
Supply Chain and Sourcing - Dealing with Component Shortages and Supply Disruptions
Free Webinar, September 29, 2021
9:00 AM Pacific (12:00 PM Eastern)
Registration is available here:
https://audioproducteducationinstitute.org/dealing-with-component-shortages-and-supply-disruptions/
