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18 March 2020

Increased Lead Times

Supply chain issues caused by the coronavirus outbreak have forced Tesla (automotive manufacturer) to use an older version of an electronic component (processor) in their new Model 3 cars.

The processor is used in the autopilot system and provides semi-automatic driving by taking control of steering, accelerating and braking systems. The new processor (3.0) processes images 21 times faster than the older chip (2.5) that they have used. Following customer complaints about the use of the older 2.5 version of the processor Tesla have responded by offering a free upgrade when supply improves, which is an expensive solution.

Manufacturers across many industry sectors face the same dilemma when lead times increase at such a rate. Does production stop or do they attempt to find and install an alternative electronic component even if it is substandard?

As a specialist electronic component distributor, we would have been able to help without the excessive cost and requirement of a product recall or ceasing production.

The coronavirus has had a huge impact on lead times which have increased dramatically. Many events and marketing influences can have an unforeseen effect upon component manufacturing. Subsequent lead time increases for electronic components have a knock-on effect, which businesses such as Tesla have experienced, and ultimately in situations like this, it’s the end customer that suffers

With over 30 years of experience we are the experts when it comes to sourcing electronic components and we help businesses that don’t have the components they need by either supplying the original part or a component from an alternative manufacturer on a like for like basis.

If you’re concerned about increased lead times get in touch to find out how we can help.

We stock almost 200,000 line items and have access to many more though our international network. We operate with a 12 month guarantee and a price promise for your peace of mind

One solution customer’s use to mitigate potential shortage and increased lead time risk is our scheduled ordering service. Cyclops Electronics manage the supply of components and can actively respond to changes in the market to ensure your components are on hand when you need them.

Learn more about the benefits of schedule ordering services here.