Protect your business against project and supply chain delays and ever-increasing price increases
LONDON, May 11, 2022 /PRNewswire/ -- Global events are causing high lead times for key supply chain components and increased prices – and it's due to get worse.
Industries across the world have been affected by the slowdown in manufacturing of computer chips and a world shortage in silicone, with foundries and manufacturing plants in Taiwan, Japan and other areas all affected by further lockdowns and shortage in key materials.
The supply chain crisis that dominated the pandemic and which is further constrained by worldwide events continues to affect UK businesses. Further pressure has been added by EU Import changes into the UK.
Take proactive action now and let Synapse360 help you plan ahead for sustainable purchases and project delivery whilst mitigating price increases where possible.
While energy and food prices continue to soar in the consumer world, businesses are also seeing significant cost increases ranging from 3% to 40% depending on the vertical/category of supply and they are further forecasted to be hit by the shortage of semiconductors and other global logistics challenges for goods and components.
The unfortunate military conflict between Russia and Ukraine – who lead the global production of essential raw materials for microchips – has severely impacted supply chain.
Russia and Ukraine produce and export metals such as nickel, copper, and iron, as well as other raw materials such as neon, palladium, and platinum. In addition, they export key materials relating to fertiliser which has seen pricing index increase by 400% in the last 12 months.
Over 45% of the world's semiconductor-grade neon is produced in Ukraine.
Freight and logistics costs have also continued to climb due to increased energy and fuel rates, a higher mix of air shipments due to ocean network congestion, and a rise in part expedites.
Amongst many other tech giants, Dell – who deliver market-leading storage, server and hyperconverged infrastructure - is dealing with component shortage issues despite a reported 16% sales increase during its fourth quarter.
"The supply situation has not kept up with the demand environment as we think about the need for semiconductors," warned Thomas Sweet, CFO, Dell.
"And that's an industry-wide issue, and clearly an issue that the technology industry is dealing with."
Synapse360 – a leading provider of managed cloud and data protection services – have developed innovative commercial propositions to protect its customers against the inevitable price rise and benefit from data security and cyber recovery.
The Dell Platinum Partner can guarantee predictable cashflows for their customers by delivering capital-intensive projects for no upfront cost, locking in fixing monthly or quarterly subscription costs and enabling customers to pay over 3 to 5 years.
"The first thing that businesses often forego at times of economic uncertainty are significant capital projects" commented Phil Baker, Head of Commercial Finance, Synapse360.
"However, these projects are often vital for long-term efficiency and economic growth and delaying such projects to achieve short-term aims has an adverse impact on businesses. We want our customers to have their cake and eat it; have the transformational infrastructure refresh that their business can no longer wait for, whilst not having that initial capital outlay that may put pressure on the company purse strings."
"Business leaders must act fact and commit to their plans; we are already seeing significant delays to orders caused by supply chain contention. Getting orders in reserves your place in the queue and gives you the financial and operation certainty that will be vital to guiding businesses in all industries through these uncertain times."
Notes to Editor
About Synapse360
Synapse360 is a managed cloud and data protection provider – running since 1999 - that helps businesses flourish in the cloud, on premise, or through a hybrid solution. We help businesses work faster, smarter, and safer – empowering them to better manage their infrastructure, storage, network, security, backup, and recovery.
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