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The chip market in 2023 is difficult to understand, and even harder to predict moving into the new year. While companies can, it’s time to seriously consider buffer stock. Geopolitics Signal Chip Market Danger Although some relief has been seen in recent months from the chip shortage that became the new normal following the COVID-19…
Much has been said about the desire for many major global economies, the U.S. included, to decouple their supply chains from China. One of the most visible examples of this is the adoption of the CHIPS and Science Act in August 2022. The crux of this legislation is to provide roughly $280 billion in new…
Buffer stock goes far beyond electronic components, semiconductors, raw die and wafer, or any other critical inventory needed by a manufacturer to maintain business continuity. Indeed, the idea of buffer stock has been around in some form since nearly the dawn of civilization, when farmers and hunter-gatherers would stock up on food to survive long…
New data from the Hackett Group’s Working Capital Survey indicates that the global supply chain this year, facing inconsistent lead times and shipping delays, has made some drastic strategic changes toward the use of buffer stock. In a survey of 1,000 nonfinancial companies’ working capital levels, inventory balances increased from $1.19 trillion a year ago…
Buffer stock appears to be the way of the future for global supply chains. Recently at the Global Smart Vehicle Executive Summit of Seicon Taiwan 2022, Director of Automotive and MCU Business Development at TSMC, Cheng-Ming Lin, made a comment that made the automotive industry take notice: as hard as the auto industry has had…
The benefits of buffer stock are well known across the business landscape and have long been seen as a strategy to secure supply chains. In 2022, however, the use of buffer stock to shore up critical inventory such as electronic components, semiconductors, have gone from being a supply chain luxury to being an absolute necessity.…