Supply chain constraints continue to impact many IT product manufacturers resulting in lengthy delivery times and continued upward pressure on prices. Many factors are contributing to this, including the availability of certain components such as integrated circuits and LCD panels, as well as increased demand.
Manufacturers are also dealing with escalating transport costs as a result of the increase in demand and capacity on air and sea supply (particularly container shipping). And on top of all of this, COVID-19 has created a mass migration to new distributed workplaces with expectations increasing for fully digital hybrid experiences.
Unfortunately, the current situation is expected to continue through the second half of 2022. However, there’s some good news! Both businesses and IT providers can reduce the impact of supply chain disruptions by being smart about it. Below are some of the top ways you can overcome supply shortages, as well as insights into what Area9 is doing to help reduce delays and meet customer needs.
How You Can Overcome Supply Chain Issues
Order Early in Your Planning Cycle
The first and most obvious tip is to order early on in your planning cycle to counteract delays as much as possible. This will help narrow the delay window, making sure you’re not waiting for stock to arrive for long periods of time.
Solution Flexibility
A key strategy for overcoming technology supply chain issues is to be flexible—this goes for both IT providers and your business. If a particular model isn’t available, there’s often an alternative that will achieve similar, if not the same, business outcomes. If you’re not sure which products to compare, talk to Area9 about your needs and we can help you find the closest alternative.
What is Most Available?
In general, right now more expensive computer equipment is more readily available. For example, you could consider moving to larger screens such as 27” and consider Intel processors at the top of the range (such as vPro® i7 and above). If you have the budget flexibility for it, this can be an effective way to get what you need sooner.
Network Equipment Tips
Network equipment is significantly impacted by the current supply chain disruptions, with delivery times of 6 months for basic switches and access points (APs). In some cases, however, niche manufacturers have product reserves that are yet to be exhausted. So, you might like to consider introducing other (tier 2) brands for non-critical infrastructure where you can but be sure to select products backed up with a solid manufacturer’s “forward exchange lifetime” warranty.
Leverage Resellers
If you don’t already purchase through a reseller like Area9, now is the time to consider doing so. Resellers purchase at better prices than manufacturers sell via their direct online stores and can often negotiate volume purchase terms on behalf of customers. On top of this, manufacturers also allocate stock for supply to resellers over direct or online purchase.
Choose a Certified Reseller
Select an IT supplier that has high levels of vendor certifications such as Gold or above. Better certifications mean larger IT product suppliers, such as Area9, have a greater standing with the manufacturers and wholesalers and will often get preferential stock allocation and pricing.
What Area9 is Doing to Help Reduce Delays
With many years of experience in IT procurement, the team at Area9 have developed an extensive network of wholesale suppliers and distributors. We maintain high levels of credit with our suppliers and constantly monitor for new supply partnerships to ensure we have plenty of options for our customers. Below are some of the other actions we’re taking.
Early Product Ordering
To stay ahead of supply chain shortages as much as possible, our experts predict demand and prepare stock availability well in advance where possible. Being proactive and thinking ahead gives us the best chance of providing our customers with what they need.
We also use advance procurement and increase stock levels of commonly purchased components to ensure urgent delivery requirements can be met.
Negotiating with Manufacturers
We negotiate manufacturer stock allocation and reservations on behalf of our customers, making sure there’s time to get approvals and issue purchase orders. Our experts know how to do this in the most efficient way, doing the groundwork for you so that your business can focus on other areas.
Expanding Our Partners
At Area9, we work with a range of vendors which means if the technology you’re looking for is facing significant delays, we can often provide a different option at a similar price that can deliver the same business outcomes. We also regularly onboard new vendors and wholesale supply partners to continually expand our offerings.
Collaboration
Collaborating closely with both our vendors and customers is important for minimising disruption. Our close relationship with vendors puts us in a better position to know what is available and fill in any gaps with alternate solutions. On top of this, by keeping the lines of communication open with our customers, we can identify technology needs further in advance.
Industry Expertise
Finally, it counts to have knowledgeable IT staff on your side who can provide experience-based advice. Our team has been drawing on decades of experience to find the best ways for our customers to overcome the challenges brought about by the technology supply chain issues.
With technology supply chain shortages predicted to continue, it’s important to make sure your business has an effective plan of attack in place to ensure you have what you need when you need it. If you’re not sure if your business is set up to handle modern digital demands, feel free to get in touch with our team today.