Manufacturing: The Search for Chips

The consumer electronics industry was hit hard during the global recession. Consumer spending dropped which resulted in a drop in production.

This production drop meant chip manufacturers were forced to reduce staff numbers or even close manufacturing plants to survive. They could no longer maintain their production capabilities when the demand wasn’t there.

The good news is that time has passed; the bad news is the recovery has been quicker than anyone could have expected which has resulted in a major supply issue for chips and components in the consumer electronics industry.

Today, there is a battle raging in the industry to source components that challenges even the best Logistics Managers. The chip manufacturers cannot make their chips fast enough resulting in long lead-times (waiting lists) for fulfilling orders. The worst we have encountered is 8 months leadtime as we just don’t have the purchasing power or influence of the big mobile and consumer electronics companies to get priority.

Some lucky or forward thinking resellers have been able to stock up on components charging what they like for small quantities. This can be as much of 3 to 4 times the price just because they have stock.

So the logistical challenge is, do you wait for you’re allotment off the manufacturing line or pay premium prices? If you decide to pay premium prices then the next challenge is finding enough stock, as it is unlikely one reseller has sufficient stock to meet your requirements for assembly. This results in managing multiple orders or the same item.

This has been our challenge and nightmare for the past few months while sourcing for our IUM Assembly.

As you have seen (http://www.infinitec.com/about_us/press.php), the shipping date for Infinite USB Memory (IUM) Drive has been delayed due to these industry issues. This is very frustrating for us as we want to share the IUM with the world and know there are a lot of consumers waiting to try this revolutionary product.

We are very sorry for the delay and would like to offer our followers the ability to pre-order the IUM to ensure they receive the product first. This pre-order will open from 1st August 2010. The IUM will commence shipping on 31st August 2010.

As a reward for pre-ordering, we will deliver the IUM via courier to your door free of charge, anywhere in the world. This offer is valid until the 31 August 2010.

Please check our website on 1st August 2010 to place your orders and continue to follow our blog for further updates about Infinitec and the IUM.

David McKern
Chief Marketing Officer

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