Shortages in Supply Chain Making it Difficult to Buy IT

Supply Chain Shortage Making it Hard for Businesses to Buy IT

 

Have you somehow been ignoring the constant headlines concerning global supply-chain shortages? Doubtful. You may be experiencing it yourself. This article discusses the shortages in the supply chain that are making it difficult for businesses to buy IT. 

The shortage of computer chips and semiconductors is purely an obstacle to the IT supply chain. Supply chain set backs force delivery dates to be pushed back almost indefinitely. Take Marvell Technologies for example, they design and manufacture semiconductors and related tech. At the end of 2021, they were offering customers a 52-week delivery time.  

Even worse than that, Intel’s CEO warns the chip crisis could last well into 2023. The founder of Dell said that even cheap parts are hard to source. In a Reuters report, Michael Dell said that “the shortage will probably last for a few years.” Even if we build chip factories all over the world, these things take time.

 

Root Cause of Supply Chain Shortages


To start, more people than ever were buying computers and other devices during the pandemic. Remote work and pure boredom made this a necessity. In the meantime, COVID-19 was causing a logistical mess for the production and delivery of that technology and we are still dealing with that. It also doesn’t help that in Spring, the major Chinese tech center of Shenzhen, went on lockdown to battle an episode of virus cases. 

During that time, we saw major global shipping ports struggle to stay open. Trucks could not arrive at container drop-off port in the city of Yantian because of lockdown. The port had proactively shut down last June for seven days, and it required a very long time to manage the transportation backlog. 

Numerous manufacturers need components from China before they can begin assembling their products. As you can see, one thing going wrong in the supply chain, leads to an assortment of delays that can stop an entire productions line. 

No part of this issue is helped by the people who stockpile components to exploit supply chain shortages. 

On top of everything, it’s not only the business tech producers that are the one’s requiring these hard to get semiconductors and chips. Basically, if it has an off switch, (ie: your phone, car, and any other electronic) it is effected by this supply chain shortage.

Read about what IT services your business should be outsourcing

 

What this Means for your Business


Simply put, business technology is going to cost more. No surprises there. Its basic supply and demand. Not only is technology more expensive, but it will also take longer to get to you.

What can you do? Plan ahead. If you’ve been thinking about upgrading your hardware, don’t wait. Start anticipating your IT needs and purchasing strategy now to better accommodate buying challenges.

You’ll also want to prioritize the maintenance of your existing technology. You cannot risk an important part of your network failing. If you do, you may have to wait weeks to see any kind of resolution. 

With hardware being in short supply and high demand, repairs are taking more time and money. Try your best to take care of what you are currently using to ensure that it lasts as long as you need it. In a time where shortages in supply chain are making it difficult to buy IT, this can be crucial.

 

We Can Help!


Working with a managed service provider can really benefit you in these times. Our specialists can perform preventative maintenance and support your long-term IT strategy. As service providers, we have great relationships with vendors and can help you get the technology you need. 

Let us take care of your short and longterm IT planning. We’d love to help! 

Click here to schedule a free 15-minute meeting with Stan Kats, our Founder, and Chief Technologist. 

STG IT Consulting Group proudly provides IT Service in Greater Los Angeles and the surrounding areas for all of your IT needs.

Logo