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components that fail to meet the required performance standards and result in failure to safety hazards and brand damage.
3. Supply chain disruptions: The unpredictability of long lead times can expose companies to supply chain disruptions. For instance, a delay in the delivery of semiconductors can create a cascading effect across the production of other components, builds and finished products.
4. Failure to deliver on time: If the lead times for critical components are delayed, and this results in failure to meet contractual deadlines or delivery obligations, it can constitute a breach of contract.
Strategies for reducing lead times in the power electronics industry To address these challenges, companies must be ready to adopt proactive strategies to reduce lead times and minimise liabilities for when demand increases. 1. Strengthening supplier relationships and forecasting demand: Strengthening relationships with key suppliers and collaborating on
demand forecasting eases component supply. Accurate demand forecasting allows suppliers to better prepare for future orders, reducing the likelihood of stockouts and excess inventory. Establishing long-term partnerships with suppliers also helps secure priority in production scheduling, ensuring that orders are fulfilled faster.
2. Advanced forecasting tools: The tools powered by artificial intelligence (AI) and machine learning (ML) can analyse historical data, market trends, and customer preferences to predict component needs more accurately. Semiconductor manufacturers can work with car manufacturers to anticipate the demand for chips in electric vehicles (EVs) and autonomous driving systems, ensuring that enough chips are available without the risk of under or overstocking.
3. Diversifying and sourcing alternatives: Relying on a single product for critical components such as semiconductors, fuses, and capacitors can create vulnerabilities in the supply chain. For example, during the semiconductor shortage that began in 2020, many companies faced significant
delays because they were dependent on a small number of components by select manufacturers. To mitigate this risk, companies should discuss with their distributor the possibility of exploring alternative component options that may offer the same performance characteristics.
4. Safety stock strategies: Safety stock serves as a buffer against unexpected supply chain disruptions, ensuring that businesses have access to critical components even if lead times unexpectedly increase. Most electronic component customers would benefit from maintaining a safety stock of semiconductors and capacitors to account for fluctuations in supply. This ensures that production doesn’t halt due to a shortage of these essential components.
5. Utilising technology: Advanced technologies such as the Internet of Things (IoT) and AI can signifi cantly enhance supply chain visibility. AI-driven systems can analyse vast amounts of data to predict disruptions and suggest alternative sourcing options or manufacturing adjustments before problems escalate.
As a leading distributor of
semiconductors, fuses and capacitors, GD Rectifiers is committed to helping businesses navigate component supply chain challenges through innovation and customer-centric solutions. Offering a diverse and robust product portfolio of semiconductor components including diodes, thyristors, IGBTs, power modules, and semiconductor fuses such as BS88, high speed, square body and industrial fuses, GD Rectifiers is ready to help with your component requirements. Recognising that every business has unique priorities, GD Rectifi ers can help with: Component sourcing Component obsolescence R&D projects Custom and fl exible ordering As the industry starts to return to normality, companies that embrace these strategies will not only reduce their lead times but will also be better equipped to manage liabilities and capitalise on new projects and opportunities, creating a more resilient supply chain.
www.gdrectifi
ers.co.uk
+44 (0) 1403 790 661
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