The Monthly Supply Chain Essential Review
Edition 2 | 2023
REVIEWS OF THE WORLD’S LEADING SUPPLY CHAIN INSIGHTS
IN THIS ISSUE
INSIGHT ARTICLE OF THE MONTH:
About this Review
The Monthly Supply Chain Essentials Review by Global Supply Chain Group (GSCG) presents timely abstract reviews of the most relevant ‘open published’ perspectives and research reports from the world’s leading branded management consulting firms and strategists.
This publication ensures that executives and their consultants are exposed to the widest range of high-quality ideas, techniques and methodologies developed across the management consulting industry globally.
Relevant insights are identified and classified once only, either in a general category, or by supply chain topic alignment to an industry segment or a functional area using our proprietary taxonomy.
Access to Full Reports
If you find a review of interest and wish to access the full report, simply follow the link beneath the title. Where possible, this will take you to the full report. Occasionally, the publisher may require the user to complete a registration or payment process prior to accessing the report.
Links are current at the time of publication.
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GSCG prepares The Monthly Supply Chain Essentials Review for its professionals and their clients as an aid to their career effectiveness and development. Each month, it is sent to over 10,000 executives around the globe. It is also co-branded and sent to thousands of executives belonging to leading professional associations.
If your organization or association would benefit from redistributing, co-branding, or appropriate exposure in The Monthly Supply Chain Essentials Review then please contact Global Supply Chain Group at [email protected]
Insight Sources
Global Supply Chain Group sources candidate insights for review from the best and most relevant material published openly by (at least) the following branded consulting firms:
- Accenture
- Morgan Stanley
- Bain and Company
- Forbes
- Deloitte
- Odgersberndston
- Ernst & Young
- Bloomberg
- IBM
- KPMG
- McKinsey & Company
- Columbus Global
- CSIS
- S & P Global
- University Of Pennsylvania-Perry World House
THE
MONTHLY
SUPPLY CHAIN
ESSENTIALS REVIEW
Message From the Editor:
We try to align the publication of this edition with the beginning of the new year; so warm greetings to our readers and reviewers from around the world. Due to the holiday season, this is a lighter read than usual, as the big firms tend to avoid publishing their best insights over the holidays.
The supply chain has been at the center stage of the global strategy world for the last two years. Almost everybody who touched this area has something to say about it. Not surprisingly, some of the best consulting companies in the world have a lot to say about supply chains now. Some of the articles chosen for this edition are surprisingly good.
We have chosen 21 of the best articles from various strong sources to review for this edition. They form a solid knowledge base in practical supply chain management and can guide the executives who choose to make the changes themselves.
It is tough to choose between similar articles, each with some good points. For this reason, our article of the month is complicated to select. Yet, one article that captures this edition’s essence is:- “Semiconductor shortage: How the automotive industry can succeed” – McKinsey Heartiest congratulations to the team at Morgan Stanley for standing out in a crowded space with an attention-grabbing article.
Several other very good articles with good-star ratings must be mentioned here, “Why is there a Chip Shortage? The Semiconductor Supply Chain, Explained” by NASDAQ stands out with its strategic insights and concise message and “Why Are Some Companies Still Short Semiconductor Chips When Others Are Swimming In Them?” by Forbes.
Enjoy this month’s edition, and don’t forget to forward them to your colleagues and teams. They can also get their copies by registering for free. Contact Global Supply Chain Group if you want our perspective on any of these topics or anything related to your supply chain. After all, enhancing your supply chains has been our sole mission since January 2000.And there are many ways we further this mission.
Vivek Sood
Global Editor
(Global Supply Chain Group)
THE
MONTHLY
SUPPLY CHAIN
ESSENTIALS REVIEW
Vivek Sood
Global Editor
(Global Supply Chain Group)
In January 2000, convinced about the importance of supply chain management, Vivek started the boutique supply chain strategy and governance firm Global Supply Chain Group after a career in Booz Allen & Hamilton in Sydney, Australia.
Before his MBA, he spent more than a decade climbing the ladder from a navigation cadet to a captain on international ships working for shipping companies based out of Southampton, Miami, Monaco and Mumbai. Uniquely, Vivek combines an extensive strategic perspective with a deep, hands-on knowledge of global supply chains.
Vivek’s clients range from international number one in critical industries to some of the most innovative newcos. He continues to drive global supply chain governance and strategy projects for multinational clients from his firm’s headquarters in Sydney. He spends his spare time writing supply chain books and methodologies that are widely adopted around the world.
CONTENTS OF THIS EDITION
Impact On Semiconductor Industry
Semiconductor shortage: How the automotive industry can succeed- McKinsey
Three in Four Semiconductor Executives Expect Supply Chain Challenges to Ease by 2024- Accenture
When Will the Chip Shortage End? – Bain and Company
Navigating the Dynamics of the Chip Market: Cyclicality is Back – Gartner
Semiconductor shortage in the auto sector needs a long-term response–Ernst & Young
Why Are Some Companies Short Semiconductor Chips When Others Are Swimming In Them? –Forbes
Improving Production Yield in the Semiconductor Industry-Infosys
Why is there a Chip Shortage? The Semiconductor Supply Chain, Explained-NASDAQ
Understanding the Current Global Semiconductor Shortage, Preparing for the Future –SPGlobal
Fixing the U.S. Semiconductor Supply Chain –Harvard Business Review
Tracking the Next Phase of the Automotive Semiconductor Shortage – BCG
Way ahead for global automotive industry amid semiconductor chip shortage-KPMG
Semiconductor shortage, commodity woes continue to haunt OEMs – The Economic Times
How auto companies are adapting to the global chip shortage –MIT Sloan
The Semiconductor Shortage: Are Car Companies Now Consumer Electronic Companies? – Forbes
Chip Shortages Will Drive 50% of the Top 10 Automotive OEMs to Design Their Own Chips by 2025– Gartner
Impact On Consumer Electronic Industry
JP Morgan says Intel’s chip shortage is ‘worsening’ and will hurt fourth-quarter PC sales by up to 7% – CNBC
A big little problem: How to solve the semiconductor shortage – IBM
Semiconductor Chip Shortage’s Continual Impact-SCHNEIDER DOWNS
How the semiconductor industry is dealing with a worldwide shortage – World Economic Forum
Global Chip Shortage and $53B Subsidy Boosts US Manufacturing- CNET
About Global Supply Chain Group
Impact on Semiconductor industry
ARTICLE OF THE MONTH
“Semiconductor shortage: How the automotive industry can succeed?”- McKinsey
In this article by McKinsey & Company, the authors discuss how the automotive industry can succeed in the face of the semiconductor shortage. According to the author, the shortage has caused production losses of nearly 1.4 million vehicles in the first quarter of 2021 alone, and the impact is expected to be felt until mid-2022. The insufficiency has also led to a significant spike in the price of chips, with some seeing up to 50% price increases.
Despite the road bumps , the author notes that the automotive industry can take steps to mitigate the impact of the semiconductor shortage. One key suggestion is to work closely with suppliers and prioritize key components to ensure that limited chip supplies are allocated effectively. The author also suggests exploring alternative sources of chips and reducing reliance on a single supplier or geographic region. Companies should look at developing stronger relationships with semiconductor suppliers to secure more predictable supply chains in the future.
To succeed in the current environment, the report stresses the importance of adopting a long-term approach to supply chain management. This includes developing a more comprehensive understanding of supply chain risks, strengthening supplier relationships, and investing in research and development to create more resilient and flexible supply chains. With the right strategies in place, the automotive industry can navigate the semiconductor shortage and emerge stronger in the future.
RATING – 10/10
“Three in Four Semiconductor Executives Expect Supply Chain Challenges to Ease by 2024”- Accenture
Accenture, a leading global professional services firm, displaying that the industry’s executives are optimistic about the future. According to the author, three in four semiconductor executives predict that supply chain challenges will ease by 2024. semiconductor industry has been grappling with supply chain disruptions and the pandemic’s impact on the global economy, causing significant challenges in recent times
The Accenture report is based on a survey of over 100 senior semiconductor executives from around the world. The survey suggests that despite the pandemic’s adverse impact on the industry, executives remain confident about their future operations. Infact, 91% of executives believe that investment in new technologies, such as 5G and artificial intelligence, will help overcome supply chain obstacles. Executives also ranked the use of digital twins and blockchain technology as the top two investment priorities for the semiconductor industry.
The author further highlights that companies are actively investing in digital transformation and new technologies to ensure their supply chain resilience. More precisely, 96% of respondents noted that their companies were actively investing in digital transformation, and 98% stated that their companies were investing in emerging technologies. The author implies that these investments will be critical in ensuring the semiconductor industry remains innovative and competitive in the coming years, while also navigating the challenges posed by the pandemic and other disruptions.
RATING – 9/10
Impact on Semiconductor Industry
“When Will the Chip Shortage End?”– Bain & Company
A new report by Bain & Company, a global management consulting firm, sheds light on when the chip shortage is expected to end. The report suggests that the industry will likely experience supply-demand balance by mid-2022.
The Bain & Company report highlights several important factors which contribute to the current chip shortage, including the COVID-19 pandemic’s impact, the rapid rise of electric vehicles, and geopolitical tensions. The author notes that the current shortage is particularly challenging as it is affecting multiple industries concurrently, including automotive, consumer electronics, and industrial applications.
The author suggests that while the chip shortage is expected to ease by mid-2022, there are several challenges that need to be addressed. For instance, the report highlights the need for greater transparency and collaboration within the semiconductor industry’s supply chain. The author also notes that semiconductor companies need to increase their investment in capacity expansion to meet the growing demand. The report indicates that the industry is likely to see an increase in capital spending over the next few years, with the top 15 semiconductor companies planning to invest $110 billion in 2021 alone.
RATING – 9.5/10
“Navigating the Dynamics of the Chip Market: Cyclicality is Back”- Gartner
In this report, Gartner highlights the trends and dynamics that businesses need to navigate to survive and thrive in the chip industry. The report sheds light on the key drivers of chip demand, which includes 5G, electric vehicles, and the internet of things (IoT), which have fuelled the chip shortage. However, the report also suggest that this increased demand can lead to an oversupply in the future, as companies ramp up production to meet the demand. The report predicts that the cyclical nature of the chip market will continue in the long term, with a growth phase followed by a consolidation phase.
In terms of supply chain challenges, the report shows that companies need to be prepared for disruptions and diversify their supplier base to mitigate risks. Additionally, geopolitical issues such as trade wars and sanctions can impact the chip market and lead to supply chain bottlenecks. The report recommends that businesses closely monitor geopolitical risks and have contingency plans in place.
RATING – 8.5/10
Impact on Semiconductor industry
“Semiconductor shortage in the auto sector needs a long-term response” – Ernst & Young
EY India recently published a report discussing the need for a long-term response to the semiconductor shortage in the auto sector. The report highlights that the automotive industry has been facing unprecedented challenges due to the supply chain bottlenecks caused by the semiconductor shortage. This report explains that the shortage has resulted in production shutdowns and delayed deliveries of vehicles, leading to revenue losses for both automakers and suppliers. The report notes that India has also been affected by the shortage, with several automakers suspending or reducing production due to supply chain issues.
To address this semiconductor shortage in the automotive sector, The report suggests a long-term approach that involves building resilient and diversified supply chains, increasing domestic production of semiconductors, and improving forecasting and planning capabilities by using advanced technologies. It’s noted that such measures would not only help the industry deal with the current shortage but also prepare for future disruptions.
The report concludes that while the semiconductor shortage has been a major hurdle for the automotive sector, it also presents an opportunity for companies to rethink their supply chain strategies and build robust supply chain. The report emphasize the importance of collaboration between the government and the industry to develop a sustainable long-term solution to the semiconductor shortage.
RATING – 9.5/10
“Why Are Some Companies Still Short Semiconductor Chips When Others Are Swimming In Them?” - Forbes
In a Forbes report on November 3, 2022 the author discusses the reasons behind the uneven distribution of semiconductor chips among companies.The author- ‘Shin’ argues that the current chip shortage is not a straightforward issue and is instead caused by several factors. He provides examples, some companies were more proactive in securing chip supply contracts and investing in their supply chains, while others were caught off guard by the shortage. Shih provides various examples of companies that were affected by the chip shortage, including Apple, which saw a 3% decline in revenue due to a lack of chip supply, and General Motors, which had to temporarily halt production of certain models.
The author also delves into the impact of geopolitical factors on the chip shortage. Shih notes that the US-China trade war has disrupted global supply chains, resulting in delays and shortages. He also shed light on some countries, such as Taiwan and South Korea, are major semiconductor manufacturers, and any disruption to their production could affect global chip supply. The report concludes that companies need to be proactive in managing their supply chains and securing chip supply contracts to avoid being caught in future shortages.
RATING – 8.5/10
Impact on Semiconductor industry
“Improving Production Yield in the Semiconductor Industry”– Infosys
The report highlights that production yield is a key performance indicator(KPI) for semiconductor companies, as it represents the percentage of functional chips produced in relation to the total number of chips manufactured. The report provides insights into how leading semiconductor companies are utilizing data analytics, artificial intelligence, and machine learning to optimize their manufacturing processes and improve production yield.
The author references a recent survey of semiconductor companies, which found that 60% of respondents ranked improving production yield as a top priority for their organization. The survey also revealed that most companies are utilizing data analytics to monitor and optimize their production processes. The author provides examples of how semiconductor companies are utilizing data analytics to identify and address production issues, such as equipment failures and process inefficiencies, in real-time.
RATING – 8/10
“Why is there a Chip Shortage? The Semiconductor Supply Chain, Explained”-NASDAQ
The global chip shortage has been making headlines since the onset of the pandemic, affecting multiple industries from automotive to consumer electronics. In this report from Nasdaq, the author explains the reasons behind the ongoing chip shortage and the complexities of the semiconductor supply chain.
According to the report, the COVID-19 pandemic has accelerated the demand for electronics as people work, study, and entertain themselves from home. At the same time, supply chain bottlenecks caused by factory shutdowns, shipping delays, and a surge in demand for raw materials have created bottlenecks in the semiconductor industry. The report also notes that the increasing popularity and demand for electric vehicles and 5G technology has contributed to the growing demand for chips, further exacerbating the shortage.
The report goes on to detail the complexities of the semiconductor supply chain, which involves multiple stages of manufacturing and distribution. This explains that semiconductor foundries, which produce chips for various applications, have been struggling to keep up with the demand due to limited capacity and long lead times. The shortage has led to price surge, longer delivery times, and a scramble among companies to secure their chip supply. The report provides a comprehensive overview of the global chip shortage and its impact on the semiconductor industry.
RATING – 8.5/10
Impact on Semiconductor industry
“Understanding the Current Global Semiconductor Shortage, Preparing for the Future” – SPGlobal
The global semiconductor shortage has been causing disruptions in various industries. In this report by S&P Global Engineering, the current state of the semiconductor shortage is analyzed and explained in detail.
The article discusses the key factors contributing to the shortage of chips for automobile, industrial and customer applications. This report sheds lights on supply chain by providing data and statistics. The estimated loss of $61 billion in revenue for the global automotive industry due to the shortage of chips. The report also touches upon the actions being taken by companies and governments to mitigate the effects of the shortage.
This report provides a comprehensive overview of the current state of the global semiconductor shortage, its causes and impact on various industries.
RATING – 9/10
“Fixing the U.S. Semiconductor Supply Chain”– Harvard Business Review
The US semiconductor supply chain has been under immense pressure due to the global chip shortage. In an effort to address this issue, a group of industry leaders and policymakers has released a report outlining key recommendations for improving the US semiconductor supply chain. This report was published in the Harvard Business Review.
The report emphasizes the need for more significant investment in research and development, as well as improvements to the infrastructure that supports semiconductor manufacturing, such as foundaries. The report also highlights the need for greater collaboration between industry and government, as well as the importance of diversifying the supply chain to reduce dependence on a small number of suppliers or country.
The report notes that the semiconductor industry is critical to the US economy, with an estimated 75% of all industries relying on semiconductors in varying capacity. However, the current chip shortage has highlighted vulnerabilities in the supply chain, with shortages impacting industries from automotive to consumer electronics. The report’s recommendations aim to address these vulnerabilities and improve the resilience of the US semiconductor supply chain for the future.
RATING – 8.5/10
Impact On Automobile Industry
“Tracking the Next Phase of the Automotive Semiconductor Shortage” - BCG
In this report by Boston Consulting Group (BCG), the authors provide an update on the next phase of the semiconductor shortage and its ramifications for the automotive industry. According to this report, the shortage is expected to persist well into 2022, leading to significant challenges for automakers worldwide.
The report highlights the importance of collaboration between automakers and their suppliers in addressing the semiconductor shortage. BCG suggests that companies should work together to identify alternative sources of chip suppleir, optimize production processes, and prioritize the production of high-value products. By adopting a strategic approach to supply chain management, companies can better manage the risks posed by the semiconductor shortage and maintain their competitiveness in the market.
The report also emphasizes the need for innovation and agility in addressing the semiconductor shortage. According to this report, companies should invest in R&D for technologies such as AI, robotics, and blockchain to optimize their production processes and reduce their dependence on chips.
RATING – 9.5/10
Impact On Automobile Industry
“Way ahead for global automotive industry amid semiconductor chip shortage" - KPMG
In this article by KPMG India, the authors discuss the challenges faced by manufacturers and suppliers due to the semiconductor shortage and suggest strategies for coping with the situation. According to the author, the shortage is expected to persist well into 2022, leading to production disruptions and supply chain challenges.
The report highlights the critical role of collaboration between manufacturers and suppliers in addressing the semiconductor shortage. The report suggest that companies should work closely with their suppliers to identify alternative sources of chips, optimize production processes, and prioritize the production of high-value products. By collaborating and adopting a strategic approach to supply chain management, companies can better manage the risks posed by the semiconductor shortage and maintain their competitiveness in the market.
The report also emphasizes the need for innovation and agility in addressing the semiconductor shortage. According to this report, companies should leverage emerging technologies such as 3D printing, AI, and industrial robotics to optimize their production processes and reduce their dependence on few suppliers. By investing in research and development and adopting a more flexible approach to supply chain management, companies can position themselves for success in the long term.
RATING – 8/10
"Semiconductor shortage, commodity woes continue to haunt OEMs" -The Economic Times
In this report from the Economic Times, the author provides an update on the current state of the semiconductor shortage and its impact on original equipment manufacturers (OEMs) in the automotive industry. According to the report, the shortage is expected to continue for the foreseeable future, posing significant challenges for OEMs worldwide.
The report highlights the complex nature of the semiconductor shortage, which has been exacerbated by a range of factors, including pandemic-related disruptions, supply chain challenges, and increased demand for electronic devices. These challenges have led to a significant spike in the price of chips, with some estimates suggesting that the cost of automotive chips has increased by up to 30%. This has put a strain on the budgets of many OEMs, who are already grappling with the rising cost of other commodities.
The article also discusses the steps that OEMs are taking to address the semiconductor shortage, such as diversifying their supply chains, prioritizing the production of high-value products, and investing in research and development to reduce their dependence on chips
RATING – 7/10
Impact On Automobile Industry
"How auto companies are adapting to the global chip shortage" - MIT Sloan
This report from MIT Sloan Ideas Made to Matter, the authors discuss how automotive companies are adapting to this crisis and the strategies they are employing to mitigate the impact of the shortage.
According to the article, many automotive companies have implemented measures to manage the supply chain and ensure the availability of critical components. These measures include diversifying their supplier base, stockpiling chips, and renegotiating contracts with suppliers. The article also highlights the use of data analytics and AI to optimize production and manage inventory levels more effectively.
The article emphasizes that the semiconductor shortage is a complex issue that requires a collaborative effort from all stakeholders in the automotive industry. It calls for greater transparency and communication among automotive companies, chip manufacturers, and government agencies to address the issue effectively.
RATING – 8.5/10
Impact On Automobile Industry
“The Semiconductor Shortage: Are Car Companies Now Consumer Electronic Companies?”– Forbes
The semiconductor shortage has had a significant impact on the automotive industry, and has caused supply chain bottlenecks and production cuts for several manufacturers. The chip shortage’s ripple effects have been felt across multiple industries, including consumer electronics. Forbes Business Council’s report explores the link between the semiconductor shortage and the consumer electronics and automotive industries.
According to the report, car companies and consumer electronics are vying for the same semiconductor supply, as the technology is crucial for both sectors. The article cites data from IHS Markit, which reveals that the automotive industry accounted for 10% of semiconductor consumption in 2020, and the industry’s demand is expected to continue to increase. The report shed light on the consumer electronics industry, which is the largest consumer of semiconductors, accounting for 33% of semiconductor consumption in 2020.
The report suggests that the semiconductor shortage may create new partnerships and collaborations between the automotive and consumer electronics industries. For example, the article highlights that Ford has partnered with Google to integrate the tech giant’s Android operating system in its cars, as the system requires fewer semiconductors
RATING – 9/10
"Gartner Predicts Chip Shortages Will Drive 50% of the Top 10 Automotive OEMs to Design Their Own Chips by 2025" - Gartner
According to a recent report by Gartner, the chip shortage will drive 50% of the top 10 automotive original equipment manufacturers (OEMs) to design their own chips by the year 2025. This is expected to be a major shift in the automotive industry, as the companies look to control their own supply chain and reduce dependence on external suppliers.
The report highlights that the chip shortage has led to a significant increase in demand for semiconductors, which has created a highly competitive market for automotive chips. This has led to a shortage of supply, resulting in delays in vehicle production and reduced sales. As a result, many automotive OEMs are now exploring the possibility of designing their own chips to improve their supply chain and mitigate the risk of future disruptions.
The report also states that automotive OEMs are expected to increase their investment in chip design and production. Gartner predicts that by 2025, automotive OEMs will account for 12% of the global semiconductor market, up from 8% in 2019. This increase in investment is expected to enable OEMs to design and produce their own chips, thereby reducing dependence on external suppliers and ensuring better supply chain management
RATING – 9/10
Impact on Consumer Electronic Industry
"JP Morgan says Intel’s chip shortage is ‘worsening’ and will hurt fourth-quarter PC sales by up to 7%" - CNBC
Intel’s chip shortage is worsening and is expected to negatively impact PC sales. The report suggests that the supply for intel chip shortage will have a significant impact on the PC market, which has already been struggling with declining sales. The chip shortage is expected to result in a 5% decline in PC shipments in Q4 2018, and the impact could be felt well into 2019.
Intel has been struggling with manufacturing challenges which have led to a supply shortage of their CPUs and GPUs. The chip shortage has affected various industries, including the PC industry, which has been relying on Intel processors for years. The shortage has resulted in higher prices for CPUs and longer waiting times for customers.
The report by JP Morgan is a warning sign for the PC industry, which has already been struggling to maintain growth in recent years. The shortage of chips is expected to lead to a decline in PC shipments, which could negatively impact the revenues of PC manufacturers. The shortage of CPUs could lead to a shift in the market as consumers may look for alternative devices, such as tablets or smartphones, that use different processors.
RATING – 7.5/10
"A big little problem: How to solve the semiconductor shortage" - IBM
Chip shortage has been caused by a combination of factors, consisting of increased demand for electronic devices during the pandemic, supply chain disruptions, and production issues. IBM has been closely monitoring the situation and has proposed several solutions to help address the shortage.
According to IBM, the semiconductor shortage has affected a wide range of industries, including automotive, healthcare, and consumer electronics. The shortage has resulted in delays in production and higher prices for consumers. As per the Semiconductor Industry Association, the worldwide semiconductor sales increased by 5.1% in 2020, to reach $439 billion, despite the pandemic-related challenges.
IBM has proposed several solutions to help address the semiconductor shortage. These solutions include the development of new manufacturing processes, collaboration between manufacturers to share capacity, and increased investment in research and development. The report has also emphasized the importance of addressing supply chain vulnerabilities and building greater resilience in the semiconductor industry to mitigate the impact of future disruptions.
RATING – 9.5/10
Impact on Consumer Electronic Industry
"Semiconductor Chip Shortage’s Continual Impact" - SCHNEIDER DOWNS
Semiconductor shortage has been caused by a variety of factors, including the COVID-19 pandemic, geopolitical tensions, and increased demand for electronic devices. The impact of this shortage is being felt across a wide range of industries, from automotive and healthcare to consumer electronics.
According to the author published, the semiconductor chip shortage has caused significant disruptions to the global economy. The shortage has affected a wide range of industries, with the automotive sector being particularly hard hit. As per the data published by IHS Markit, the shortage is expected to result in a production loss of around 1.3 million vehicles in the first quarter of 2021 alone.
The report also discusses the various measures being taken to address the semiconductor chip shortage. These measures include increasing production capacity, developing new manufacturing processes, and investing in research and development. The article also emphasizes the need for greater collaboration between manufacturers, as well as the importance of addressing supply chain vulnerabilities to mitigate the impact of future disruptions
RATING – 9.5/10
"When the chips are down: How the semiconductor industry is dealing with a worldwide shortage" - World Economic Forum
The COVID-19 pandemic and geopolitical tensions are some of the factors that have contributed to the shortage. As a result, the global economy has been affected, with many industries, including automotive, consumer electronics, and healthcare, feeling the impact.
In an article published by the World Economic Forum, it is stated that the semiconductor chip shortage has resulted in a loss of $210 billion in revenue for the automotive industry alone. The report also highlights the importance of semiconductor chips in modern technology, from smartphones and computers to electric vehicles and medical devices. The shortage has also led to delays in the production of various goods, causing a ripple effect throughout the supply chain.
The report discusses the various measures being taken to address the semiconductor chip shortage, such as increasing production capacity and investing in research and development. It also highlights the need for greater collaboration between governments, manufacturers, and other stakeholders to mitigate the impact of future disruptions. The article also emphasizes the importance of addressing supply chain vulnerabilities to build resilience and ensure continuity of supply.
RATING – 9/10
Impact on Consumer Electronic Industry
"Global Chip Shortage and $53B Subsidy Boosts US Manufacturing" - CNET
The global chip shortage, caused by various factors such as the COVID-19 has caused trouble for various industries, including the automotive and tech sectors. However, this shortage has also created a new opportunity for the US manufacturing industry. According to a recent report by the National Association of Manufacturers (NAM), manufacturers in the US have increased their investments in equipment and technology, leading to a boost in production.
The NAM report highlights that more than 50% of manufacturers in the US have reported disruptions in their supply chains due to the chip shortage. However, this has also led to a renewed focus on domestic manufacturing, with many companies investing in new equipment and technology to boost their production capacity. Some of the big names in the industry, such as Intel and Qualcomm, have also announced plans to invest in new chip manufacturing facilities in the US.
The chip shortage has had a significant impact on the tech industry, with some companies struggling to meet the demand for their products. However, the increased investment in US manufacturing is expected to help alleviate the shortage and boost the domestic industry.
RATING- 7/10
Mission & Vision
Mission: We strengthen our clients’ profitability from within the supply chain. Your profits are under constant attack from your suppliers, competitors, customers, and many other directions.
Our mission is to identify and defend weak links in the supply chain and leverage the strong links to maximize profitability over extended periods of time.
Vision: To be the premier thought leadership institution in Supply Chain governance and strategy – working with the boards, CEOs, and our client teams to strengthen profitability of our clients’ corporations.
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Global Supply Chain Group have the experience, openness, and time to understand the unique system dynamics underlying every supply chain.
Our unique 5 X 5 supply chain dynamics model helps pinpoint the exact root cause of the supply chain problem, and the level of project intervention required for protecting your profitability from supply chain attacks of your adversaries. Uniquely among the consulting companies, it aids in just the right level of intervention at the right element of each supply chain for every project.
Our clients include local, regional, and global organizations supply chain leading companies across almost every major industry and sub sector. Client references are available from board members, CEOs, C-suites, executives, and middle management who enthusiastically support our dedication to supply chain management with fit for purpose highly experienced teams working alongside client teams.
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