While it may feel like we are coming out of the COVID-19 pandemic, the supply chain shortage still looms.

Over two years later, we still see disruptions directly caused or exacerbated by COVID-19. Shutdowns, shortages, and increased demand have combined with the loss of shipping lanes, extended shipping times, growing shipping costs, and slow transit times.

Automation Part Shortages

One major issue affecting automation engineers is the global shortage of semiconductors. While the pandemic did not explicitly cause this shortage, its effects have compounded it.

Insulated gate bipolar transistors (IGBTs), used in many servo and variable frequency drives, are facing heavy demand. More applications deploy IGBTs, including electric vehicles. Lead times for Chinese-made chips are measured in months, forcing businesses to forecast correctly and adjust production to adapt to supply chain shortages.

It's not only semiconductors that are pushing back production schedules. Many manufacturers have released statements addressing their products' production and shipping times.

To further complicate matters, we also see issues with limited global shipping capacity. Carriers to move products are in short supply, and shipping rates are increasing. Recent reports released by UPS, FedEx, DHL, and other major carriers have revealed air, sea, and road shipping methods delays. Shipping lanes are in short supply and 75% higher than in 2020.

All current information points to these shortages continuing for the long term. This does not mean production will be halted altogether. Still, if you want to stay caught up in production, there are several things you can do to add a buffer to your supply chain.

3 Tips for Managing the Supply Chain Shortage

1. Order ahead: place orders for parts as soon as possible. If you still need to make large-scale blanket orders of parts you need, consider doing so to stock up for the coming months.
2. Stay in communication with your distributor: when working with Motion Automation Intelligence, be honest with what you need and when you need it. We will do our best to place your orders with manufacturers and deliver the required products on time.
3. Devise a shipping strategy: from choosing the best shipping method to route planning, work with distributors and your receiving teams to find the most effective ways to have your parts and products delivered, whether by road, sea, rail, air, or intermodal.

If you continue to face availability issues, let us know. We can procure the products you need or recommend an alternative product to meet your application needs. Contact us today.