One Example: Chips in Cars
Car manufacturers use computer chips for many functions like navigation and safety features. But due to the pandemic and other factors, there’s a shortage of computer chips, which has caused production cuts and delays. This has hurt car sales and revenue.
To deal with this, some car makers have
– adjusted their production schedules,
– halted production, or
– prioritized certain models.
This has led to higher prices for cars, making it harder for some customers to buy them.
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𝗡𝗼𝘁 𝗘𝗻𝗼𝘂𝗴𝗵 𝗠𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝘀? 𝗧𝗵𝗮𝘁’𝘀 𝗕𝗮𝗱 𝗳𝗼𝗿 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀
You want to buy a necklace or a shirt, but the store says they don’t have it. That’s because they can’t get enough of the stuff they need to make them. This happens when suppliers don’t have enough materials.
For example, a jewellery store can’t get enough gold to make necklaces. They can’t sell them without gold, so they lose customers. An apparel store can’t get enough cotton to make shirts. They may raise prices or stop selling shirts. This hurts their sales and they might go out of business.
Business owners need a plan when suppliers don’t have enough materials. They can find other suppliers, change their prices or change their products. They have to be ready for limited materials.
Limited materials are bad for business. Don’t let your business suffer.
Do you have a story about how limited materials hurt your business? Share it in the comments!
hashtag#computerchips hashtag#safety hashtag#sales hashtag#demandplanning