News You Can Use – 4.29.19 – 5.3.19

As the leading independent distributor of electronic components, Smith tracks open-market activity and conditions as an early indicator of trends and supply chain disruptions. Industry news provides important and time-sensitive information when strategically procuring components, planning for NPIs, or making any critical decisions in the supply chain.

We’ve curated a selection of this week’s industry articles that we feel can help customers gain relevant, useful knowledge and prepare for any supply chain requirements.

Supply Chain More Optimistic About Q2 Component Demand

According to an April survey performed by Technology Partners Consultants, the electronics supply chain is more optimistic about Q2 component demand than they were in March. Order cancellations, a negative index in previous months, are beginning to show a positive shift. Inventory levels, however, remain high, while surveyed experts report only a slight increase in expected orders from the previous month. Many eyes are on Q3 as the beginning of a turnaround, overall, and 5G is once again seen as the major driving force of future component orders. If the 5G rollouts begin at the end of Q2 or beginning of Q3, demand for several component segments is expected to rise, and, according to some, may potentially cause supply chain disruptions. Read More.

SK Hynix to cut NAND flash output by over 10%

SK Hynix announced plans to cut its NAND flash output by over 10%, starting this year, to slow down the pace of its capacity expansion. This news comes after the company reported lower-than-expected operating profits, down 69% on both sequential and on-year bases. The company attributes its overall negative performance in Q1 to “a faster-than-expected price decline and lower shipments due to slowing memory demand.” Specifically, SK Hynix’s average selling price for NAND flash fell 32% sequentially in the first quarter. This fall is due to “high inventory levels and intensifying competition among suppliers.” Read More. [1]

Gartner Identifies The Top 8 Supply Chain Technology Trends In 2019

World-renowned research firm Gartner, Inc. has identified the top eight supply chain trends for 2019. For this list, Gartner focused on technology trends that have broad industry impact but have yet to be widely adopted.

1. Artificial intelligence (AI)
2. Advanced analytics
3. Internet of things (IoT)
4. Robotic process automation (RPA)
5. Autonomous things
6. Digital supply chain twin
7. Immersive experiences
8. Blockchain in supply chain

Christian Titze, Gartner’s research vice president, believes that, “[w]ithin the next five years, if half of large global companies are using some of these technologies in their supply chain operations, it’s safe to say that the technologies will disrupt people, business objectives, and IT systems.” Read More.

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