As the world continues to develop, the importance of the Internet of Things (IoT) market is becoming increasingly clear. IoT technology is allowing businesses and consumers around the world to connect, control, and monitor devices remotely, allowing for a more efficient and practical way of doing things. However, the success of the IoT market has been hampered by supply chain challenges all over the world.
The global supply chain is becoming increasingly complex, with many countries and businesses involved in the process. This has led to a number of challenges, from issues with transportation and delivery to a lack of coordination between different stakeholders. These issues have created delays and disruptions that have a negative impact on the IoT market.
Lack of Components
One of the biggest challenges has been the lack of access to reliable, high-quality components. Many components are produced in countries with limited infrastructure, meaning that they are often not up to the standards of those in more developed countries. This has meant that the IoT market has been unable to access the components it needs to develop and deploy new products.
The global pandemic has only exacerbated these issues, with many countries facing lockdowns and restrictions that have disrupted supply chains. This has led to a shortage of components and a disruption of the production process, which has had a significant impact on the IoT market.
Many global companies faced this challenge. For example, in late 2020, Ford reported that it was facing a global shortage of computer chips, which was causing production delays in its factories (Wayland, 2021). Further on, in 2020 and 2021, Samsung reported that it was facing a global shortage of components, which was impacting its production of televisions, smartphones, and other products (BBC, 2022). The problem is real and it exists, which require attention and solutions.
The Difficulty of Collaboration between Stakeholders
Another challenge has been the lack of collaboration between stakeholders. With so many different countries and businesses involved in the process, it can be difficult to get everyone on the same page. This has caused delays and disruptions in the supply chain, which has had a negative impact on the IoT market.
The challenges posed by the global supply chain are having a major impact on the IoT market. Delays in the supply chain have meant that the market is unable to access the components it needs to develop and deploy new products. The lack of collaboration between stakeholders has also caused disruptions, leading to delays and disruptions in the production process.
TEKTELIC Communications has also faced these challenges over the last several years, and we are not afraid to admit it. The situation with components shortages and delivery difficulties has affected our supply chain, and production lines, especially at the beginning. But now, we have rearranged our supply and production process, so we are able and committed to delivering orders on time, expanding our product portfolio, and making the way forward.
The Solution to a Problem
Different companies approach shortage and supply chain issues differently but most of them follow collaboration and rearrangement direction. For instance, Samsung responded to components shortage by increasing its reliance on its own component manufacturing capabilities and expanding its supplier base to include more non-traditional sources (BBC, 2022). Apple, in turn, reacted by diversifying its supply chain, expanding its network of suppliers, and using alternative materials (Q.ai, 2023). Companies find their solutions one way or another, setting good examples to follow and increasing motivation for small and mid-sized businesses.
Here at TEKTELIC, based on our own experience and world-known examples, we believe that the only way to overcome these challenges is through increased collaboration and coordination between different stakeholders. Governments and businesses must work together to ensure that the global supply chain is running smoothly and that the components needed for IoT products are available on a timely basis.
By working together, the IoT market can have access to the components it needs to develop and deploy new products.
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BBC. (2022, January 7). Global chip shortage: Samsung expects its profits to jump by 52%. BBC News. Retrieved January 5, 2023, from https://www.bbc.com/news/business-59904658
Q.ai. (2023, January 2). Apple to diversify its supply chain by producing MacBooks in Vietnam. Forbes. Retrieved January 5, 2023, from https://www.forbes.com/sites/qai/2023/01/01/apple-to-diversify-its-supply-chain-by-producing-macbooks-in-vietnam/?sh=24196237d751
Wayland, M. (2021, February 11). How COVID led to a $60 billion global chip shortage for the auto industry. CNBC. Retrieved January 5, 2023, from https://www.cnbc.com/2021/02/11/how-covid-led-to-a-60-billion-global-chip-shortage-for-automakers.html