COVER STORY
Anglia’s top five tips for a prosperous 2020
There’s every reason to be optimistic as we go into 2020. Contract Silicon FAB companies like TSMC are ahead of us in the economic cycle and it is significant that they have posted some positive results. As we look to the New Year, we have five tips to help customers ride the crests and avoid the troughs in the supply chain that can catch out the unwary, creating a prosperous 2020
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1. Watch those lead-times
ight now, the UK industry is still absorbing the inventory that was put in place earlier in the
year. Distributors and customers have surplus stock that needs to be used before demand recovers. For this reason, lead times are currently very low (8-10 weeks) and buyers can pretty much buy what they need. This won’t last. As the excess inventory gets consumed and orders start to rebuild, those lead times will certainly move out, probably from June / July onwards. Those product launches trumpeted by TSMC as having a positive effect on their results will also have an impact. We will be keeping our customers up to date. We expect most lead times to creep out steadily, but there may be lead time surges on specific devices caused by spikes in the 5G infrastructure, smartphone and other consumer markets. Buyers should make sure that they are covered with forward orders to secure their position certainly beyond the middle of the year.
8 December/January 2020 Components in Electronics
2. Use suppliers with UK Inventory Inventory that’s here in the UK is instantly accessible whatever the weather, the delays at customs or the probable outcome of Brexit. One of Anglia’s biggest advantages has always been that we hold all our inventory on shore. This allows for reliable next day overland delivery. We are currently holding a historically high level of stock, meaning that we might well continue to have availability when others don’t.
www.cieonline.co.uk
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