Continuing with the unprecedented uncertainty in the current marketplace, we would like to talk to you about the logistics of procuring IT equipment during a high demand time in an already constrained supply channel.
Intel Processor Shortage
While Intel has struggled to keep up with demand producing both 14nm wafer processors and 10nm wafer processors they’ve informed partners of “record levels of Capex” to increase production. Intel’s processors are manufactured in the US (Arizona, New Mexico, Oregon, Massachusetts), Ireland, Israel, and China. They are assembled and tested in Malaysia, China, Costa Rica, and Vietnam. Enter the Chinese New Year where factories close for a few weeks and add Covid-19 to the mix that keeps the factories closed for an extended duration. Intel, like many others at this time, has the greatest challenge on their hands. Not only do they have existing production backlogs, but they also have a launch of their new comet lake (10th gen) processor set to release late spring.
Components and Peripherals
With global communities focused on protecting and caring for its citizens during the Covid-19 pandemic, the workforce disruption has caused shortages in other components like LCD screens, system boards, and other integrated components. It’s an uphill battle for OEM manufacturers to get the supplies they need in a timely fashion.
What are US IT Distributors Doing?
At the moment, their number one goal is to protect their employees and their families. They are an essential business for our IT infrastructure and a key to many businesses’ continuity plans. Some of the procedures they put in place are:
- Limiting facility access to essential employees needed to fulfill orders and utilizing a remote workforce model for the rest of its employees.
- Increased sanitizing and cleaning services
- Implemented Social Distancing Policies and no-touch handoff policies to freight couriers
- Restricting non-employees access to facilities, including order pickup
- Restricting employee travel
- Postponing and/or canceling events