How to Avoid Component Shortage Nightmares

Author: David Scribner (8 Articles)

David has been in the Supply Chain Management arena for more then a decade. His service with the U.S. Army’s Intelligence Branch during the Vietnam Era Veteran within the U.S Army’s Intelligence Branch helped develop an attention to detail, a positive attitude and an ability to build systems with superior accuracy and efficiency that has earned him a national reputation. Over the years, he has given multiple TV and radio interviews, sharing his insights on Global Business Strategy. David heads up our quality systems and oversees the entire AS9120 SAE ISO 9001:2000 certified process.

Shortages happen, and there’s nothing more stressful than tracking down the right component with a gun to your head. You need it now. You need it to be right – not a fake, a refurb, or something that’s ‘almost’ right. And you need to know you’re not paying way too much because the supplier or broker knows you need it now.

The key to avoiding the pitfalls of component shortage nightmares is to do your homework before the shortage hits the fan.

Start by researching your suppliers to find out who you can trust and who can deliver – not just for routine purchases, but in shortage situations. Knowing who has been reliable in the past can give you a go-to list for future shortages.

Next, do some research on the secondary market to speed up your search when components get scarce. Often, a shortage means a frantic website search which reveals plenty of people advertising the part you need. But most want you to call for pricing and availability. They may tell you it’s in another time zone, or in an overseas warehouse, while they buy time to track it down. Before you know it, you’ve lost a day or more and still don’t have full and accurate information. You can call on brokers to find the part, hoping to get it faster. But the more desperate you are, the more likely the broker will open with a high price and negotiate up from there.

Finally, make sure you – and the suppliers you’re researching – know all the angles, from alternate parts options and packaging requirements to customs fees and regulations. There’s nothing worse than thinking you’ve solved a shortage problem only to find out that the shipment has been held up at port.

With today’s tight requirement windows and high-speed global supply chains, it’s important to prepare ahead. Finding out NOW who you can trust to locate the part you need quickly and accurately, then follow through from warehouse to delivery, can take a whole lot of stress out of your shortage situations.