EDIT Supply PSI Jan22_PSI_mar15 23/12/2021 15:48 Page 2
TECHNOLOGY
Product supply and demand The pandemic has put supply chains under enormous pressure, with component shortages and price rises affecting all industries. Here we speak to David Hicks, Technical Director for Security and Intrusion systems at Eaton about how alternative sourcing strategies and a new approach to value engineering has mitigated the impact of these global factors he twin spectres of component shortages and rising cost of freight continue to haunt international markets. Across the world, post lockdown recoveries have led to soaring demand for raw materials and commodities, resulting in a lack of capacity for certain products such as semiconductor chips. Meanwhile, transport and logistics bottlenecks have caused chaos in global supply chains, causing unprecedented lead times on some items. These factors have sent prices soaring across the board, with the issues affecting a broad range of vertical markets from automotive to electronics through to household goods. The safety and security industry isn’t immune to the buffeting of these ill winds. Products such as intruder alarm panels, communication equipment and sensors are complex pieces of equipment that contain many of the types of material and, specifically, electronic components which are currently in short supply. Subsequently, some security system suppliers have large supply gaps in their product lines, while others have been unable to trade and have fallen by the wayside. In short, it has been a testing time for the safety and security sector – and the problems aren’t over yet.
T
www.psimagazine.co.uk
Sourcing alternative parts So, what are organisations doing to limit the impact of these global supply problems – both internally and for end customers? According to David Hicks the answer to this question comes with a multi-faceted response that requires an integrated team effort across planning, procurement, and engineering departments. It also requires improved communication with customers, giving them as much forewarning as possible of any potential product shortages that are likely to occur. “One of the primary challenges of current global supply problems has been the sudden unavailability of critical components that form part of a broader system,” says David. “For example, recently, one of our long-standing radio parts suppliers based in Taiwan announced that it could not fulfil its supplier commitments and couldn’t offer an alternative component. The severity of the problem required an instant response, with procurement and engineering teams working closely together to identify a potential replacement.” But that is just the start of the story. To replace one component with another requires extensive validation, verification, and
“One of the primary challenges of current global supply problems has been the sudden unavailability of critical components that form part of a broader system”
35
