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Modified Production Logistics

As for many people, working from home has required some purchases, some modifications, even some renovations. Walking through the shelves of national hardware or furniture chains, I am shocked by the number of empty shelves and “currently unavailable” notes. As if I were visiting these stores a few hours after the biggest sale of the year.

Supply chains have been affected for several months. We witnessed that these impacts have affected almost all areas worldwide. This crisis has caused a drop in the turnover of many companies and our daily production needs a more stable operation of supply logistics. The effect is also reflected in a general increase in prices.

Is it just the virus affecting global supply?

Whether it’s because of factory closures in 2020, the high demand for electronics related to working from home or because, confined at home, everyone wants to have a pool installed, renovate their house, have home automation installed, etc. There are several reasons for back orders in all areas of our daily lives. To remedy this, everyone had to “adapt and reinvent themselves”, keywords that have been too common in the last two years.

If you wish to learn more about available solutions to face the challenges related to the field of electronic supply, watch the video produced by Jean-Samuel Chenard, Founder of Motsai, by clicking here.

Like everyone else, Motsai adapts to a new reality.

The development of connected products is also very affected by these stock shortages. Indeed, everyone is aware of the shortage of electronic components that the whole worlds has been facing for more than a year, combined with a staggering increase in the price of these components.

Using several small tricks, Motsai helps its customers to continue their product development and not be blocked by all these changes. Indeed, it is now necessary to design while maintaining a certain flexibility in terms of basic materials and to identify replacement components, not knowing what will be available when production comes. In addition, the certification stage is carried out in the same spirit.

In some cases, we suggest our customers reserve their stock in advance: product development already implies many tedious steps, there is no need to voluntarily add obstacles.

What about the future?

This new reality may well mark a significant break in the “Just In Time” inventory. Supply models need to be given some time to readjust. With replenishment uncertainty and ever-increasing demand, more and more companies are turning to a much more rigorous “Clear to Build” process.

Indeed, this method which advocates waiting to have all the components or at least a confirmation of the inventories before entering the production phase, is more and more popular since it optimizes the conditions and the management of the production chains by limiting downtime and waiting, in addition to the storage of unfinished products.

To further reduce risks, observation and monitoring of operations and regular communication with suppliers and customers are required.

Despite the challenges brought by this situation, the future holds a supply chain closer to the consumer. It will also be a more resilient future in addition to being able to integrate better communication between the actors as well as a better analysis of the impacts on the environment.
If the various stock shortages, rising prices or any other aspect related to supply affects your design and development of connected products, do not hesitate to contact Motsai (www.motsai.com). Our entire team is there to support you and facilitate this process. Contact us at info@motsai.com.

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