The Hardware Supply Chain Issues Affecting All Businesses

The global supply chain issues that have been undermining the delivery of key raw materials, parts and products have hit some sectors worse than others. But nearly all businesses, regardless of their sector are impacted by the issues plaguing the IT supply chain that has been affecting the supply of laptops, phones, network hardware, routers and a variety of other mission-critical devices for businesses.

Many businesses have noticed unpredictable lead times and an increase in costs for many IT products. But there are other challenges as well. A recent survey by GetApp found that organisations were experiencing the following consequences due to IT hardware supply chain challenges.

Source: GetApp

GetApp discovered that 78% of the respondents faced an IT hardware supply chain delay in the past 12 months, and 52% have waited between four to 13 months. As a result, almost 74% of organizations cancelled orders and reordered with another vendor, risking their relationship with original vendors. Only 2% of respondents said they didn’t face any delays.  

So what can IT departments do? It’s difficult to chart a path for a consistent supply in uncertain times, but here’s how businesses have been managing headwinds so far, according to the survey from GetApp:

• Half (50%) of the respondents said tier organizations are adjusting according to the supply and availability
• 27% have increased their order frequency
• 35% are placing orders for more than what they need to maintain inventory
• 30% are shelling out a premium for faster shipping
• 28% are partnering with other businesses to place larger orders together
• 27% are resorting to fulfilling demand from local suppliers
• 23% are partnering with other businesses to share warehouse space
• 21% are working with third-party vendors
• 17% are reimagining inventory management and are thus investing in tech that can impart better insights

As a technology company that provides IT hardware, we have experienced first-hand the difficulties in the supply chain. And with issues expected to continue for many more months, we recommend businesses plan ahead for IT needs, order hardware early, keep expectations realistic, and work with your provider to come up with possible workarounds.

For more information on lead times for the hardware you may need, contact us today on 020 7078 3200 or info@vtsl.net.

About VTSL 

VTSL is a cloud communications company specialising in business telephony, switching, routing, WiFi and connectivity. As a boutique provider with the capabilities of a large telco, customers benefit from personal customer service, account management and truly tailored solutions. VTSL helps businesses save money and time by working smarter - using technology to reduce admin time to free up the things that really matter. Learn more at www.vtsl.net.