U.S. Manufacturers Feeling the Supply Chain Squeeze Should Consider Semiconductor Storage Possibilities

By Logan Wamsley

As the Coronavirus-caused lockdown of the world economy continues, supply chains across virtually all industries are feeling the squeeze. Among the industries most feeling the effects is transportation; as air lanes are being ever-more aggressively shuttered, key goods ranging from food perishables to sensitive electronic components are experiencing delays that many companies were not prepared to adapt to.

“Supply chain disruption has moved rapidly from east to west,” said Mohammed Esa, chief commercial officer, Europe, with global logistics group Agility in an article published in Reuters. “What you could normally move in two or three days is going to take twice as long — you have to still get it through the airport, you have put it on a truck and get it through borders.”

Not only have delays become more common, but air transport has gotten more expensive, as well. According to estimates, 85% of U.S. air freight capacity has been cut due to the U.S. restrictions on foreign visitors. This reality has pushed freight costs up five-fold as space for remaining cargo runs becomes more limited.

As disruptions become more common and are projected to get worse before they get better, the benefits of alternate sourcing and storing methods are becoming more stark — namely the strategy of storing critical inventory in-house, which ensures that appropriate materials are on hand directly at the point of assembly.

Unfortunately, for many U.S. manufacturers, this is no longer a possibility. As supply chains have expanded in recent years and shipping methods have diversified, manufacturers have concentrated their limited warehousing space not toward storage, but toward equipment to maximize output. Take away diversified shipping routes, especially at the scale seen today, and the delays can be significant and financially devastating.

Long-term inventory storage in a single secure location within U.S. borders all but eliminates the need to be concerned about restricted international supply lanes. The facilities used for the Partstat Semiconductor Storage Solution, for example, are located in Orlando, Florida. The moment the inventory is required for assembly, a Partstat customer just says the word and our experienced staff securely packs and ships the inventory. Even in a constricted shipping market, having the necessary inventory within borders can significantly decrease the risk of delays without the need to cross international lanes.