Following COVID-19, It’s Time for OEMs to Consider Change
The COVID-19 pandemic and the ensuing lockdown in both the personal and business spheres has had a catastrophic effect on the world economy. However, despite the obvious struggles, many organizations have taken the opportunity to re-evaluate their processes and protocols and prepare themselves not just for the next pandemic or similar incident, but for the long-term future of their business. Some changes, such as expanded telecommuting policies and the incorporation of robotic process automation, have long been expected, while the sudden impact of the pandemic has greatly accelerated the transition. Although the pandemic will eventually subside, in many ways, business will never be the same; much of what has changed will become permanent fixtures of the businesses landscape.
In the electronics manufacturing space, many of these changes will be tied to the industry’s desire to preserve business continuity. As equipment manufacturers and their contract manufacturing partners alike continue to refine their processes to prepare for what the future might hold, we at Partstat encourage them to not neglect how they securely store inventory to support their long-term builds.
On-site electronic inventory storage comes with significant risk. Not only is such storage expensive with annual carrying costs reaching as high as 30% of the cost of the component, but as electronics continue to advance, increased sensitivity of components necessitates that storage facilities quickly adapt to accommodate. This requires additional investment and training far outside the reasonable expectations of many OEM budgets. Facing these realities, the only conceivable option moving forward is to consider the services of independent third parties who specialize in secure long-term storage on an as-needed basis.
This is a highly agreeable option for a variety of reasons. First, by relying on the expertise of highly-skilled storage specialists, the risk of inventory being compromised due to improper warehousing is all but mitigated. Instead of a baseline minimum quality of storage for all available inventory, each individual component will be assigned an appropriate storage option based on its unique specifications. This also opens up the opportunity for OEMs to expand their capabilities with newer, more advanced design builds that otherwise would not be feasible with basic storage options.
Additionally, many third parties offer specialized options that go far beyond the expected specifications of an electronic component or semiconductor. Partstat, for example, offers customers full access to a one-of-a-kind custom storage vault that uses state-of-the-art technology to guarantee business continuity against all known environmental factors including fire, flood, hurricane, earthquake, ESD discharge, and much more.
With every crisis comes opportunity. Now is the time to not just survive in the short term, but to thrive in the long term, far beyond the COVID-19 pandemic. It’s time to reconsider the old models that have long established themselves and acknowledge that change is necessary as we move toward the future — and specialized third parties such as Partstat are here to help.
For a full case study on how the Partstat Semiconductor Storage Vault can guarantee business continuity and ensure downstream revenues, click here.