How Australian manufacturers can navigate chip shortages and supply chain disruptions
By Matthew Addley, Industry Strategist – Manufacturing, Infor The semiconductor and chip shortage affecting the automotive and technology industries is likely to persist through to 2024, which means Australians will continue to face longer wait times for cars and tech products. Even though manufacturers are expanding chip production, and governments are increasing investments in semiconductor technology, the problem is unlikely to be resolved in the medium term, especially due to the long lead times and other production complexities. The ongoing disruption has turned the spotlight on supply chain vulnerabilities and its impact on everyday commodities – from mobile phones to automobiles. The growth of the global semiconductor industry in the last decade was driven by widespread technology adoption and the subsequent demand for microchips. However, a mismatch in supply and demand has decelerated growth in the past few years. The pandemic in particular led to automobile sales plummeting in 2020, which resulted in automakers cutting chip orders and moving production lines to meet demand for other applications. What they didn’t anticipate was a rapid rebound, which has left automakers struggling to meet existing demand. Despite the subdued outlook, local manufacturers can learn the lessons and build resilience to navigate future disruptions by: 1. Leveraging data insights Many manufacturers still have a very siloed approach to running supply chains. The benefit of operating in a data-driven economy is that there are myriad tools that you can use to analyse information within the business to understand what to tackle first. Without actually re-engineering their products to use less chips or find a magical new source of that particular supply, manufacturers can adopt modern, data-driven processes that can help adapt to sudden changes. Modern cloud-deployed ERP solutions are invaluable to capture and track data throughout an organisation. 2. Optimising supply chain agility Earlier this year, the […]