If we can’t secure the supply chain, eventually everything else will break
Recent events have illustrated the need for robust continuity plans, and while these events are still unfolding, it also brings to light the need for robust supply chain planning. A review of the r/sysadmin group on Reddit reveals comments from systems administrators that their orders for laptops, servers, networking gear are being delayed for at least one to two months… so far. And that is for large enterprises, whose purchase contracts typically extend out over several quarters. Smaller businesses may find it even more difficult to obtain computers.
When your new PC shipments stall, for example, it creates a self-amplifying chain of events that increasingly impacts a whole series of business issues, such as having new hires being able to start working and upgrades for employees on older hardware. Some businesses may be able to cushion this blow by repurposing and recommissioning old hardware, or by continuing to use aging equipment. But the ability to maintain these is limited by the spare and refurbished parts available to keep them running.
Certain suppliers that make components like power supplies (or hard disk drives or RAM) rely on central manufacturing in high-density plants located in relative proximity to each other in a few parts of the world. From an economic perspective, this makes a lot of sense. From a return-on-investment viewpoint, clustering factories helps offset high operating costs and reduces final output costs to something affordable in a worldwide market by placing the facilities close enough to each other that it introduces economies of scale to building, staffing and operating them.
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