By now, you’ve probably heard about the ship, named Ever Given, that got stuck in the Suez Canal. Thankfully it was freed yesterday, after nearly a week blocking one of the world’s most important canals. According to AP News, around 10% of all global trade flows through the 120-mile-long Suez Canal. That’s nearly $10 billion of goods every day. At least 200 ships were forced to idle near the canal while tugboats worked on freeing the Ever Given.
The effects of the situation could reverberate through international trade for months to come.
How will this affect IoT supply chains?
The Suez Canal blockage exacerbates an already severely limited global supply chain. In fact, this is just the latest in a series of stories painting a grim picture for a world that has grown accustomed to just-in-time inventory and reliable supply forecasts.
For IoT devices specifically, another glitch in the global supply chain is particularly troublesome. From factory shutdowns due to COVID-19, to the devastating AKM fire, to the Suez Canal blockage, the beat goes on and on.
We expect to see more device shortages in the short term because of the Suez Canal delays. In fact, we were recently quoted an unbelievable 24-week lead time for one device!
What does this mean for your business?
Being aware of supply constraints should lead businesses to be very proactive in implementing IoT solutions. As the supply chain struggles to come back online, IoT devices for today’s projects will come from existing inventory – supplied on a first-come, first-served basis. So if your project is urgent, the time to act is now. Said another way, the longer we wait to pull the trigger, the longer we will wait for the benefits of the solution!
How is Ready Wireless preparing for potential IoT device shortages?
Over the last 3 years, Ready Wireless has built a robust supply chain and device-agnostic platform. Our platform allows us to use virtually any device for fleet and asset management, so we are not dependent on one manufacturer for IoT devices. This flexibility is the best way to ensure that IoT solutions (and the ROI these solutions unlock) are deployed for our customers in a timely manner.