Introduction
The widespread dangers posed by the COVID-19 pandemic have forced most countries, prominent industrial actors particularly, to develop and apply strict regulatory policies regarding their exports, imports, and travel. Their primary intention was to minimize the number of human interactions and, therefore, the infection rate. Unfortunately, these measures have caused significant damage to the global supply chain, especially those sectors where car and computer manufacturers operate, creating multiple significant and minor delays. Given the current external conditions, the best resolution for companies experiencing long delivery times is to shorten their delivery chain of semiconductors by excluding all its actors except one entity capable of providing large quantities of components and warehouses for them.
New COVID-19-related government regulations regarding import-export semiconductors, especially from China, are the main reason for the increased delivery times in the United States industry. Moreover, it has also slowed down progress in such areas of supply chain management as transformational agility, flexible network integration, and global optimization (Speranza, 2018). Shortening and simplifying the logistics chain makes it much easier for business entities to comply with these new rules and obtain the necessary semiconductor components on time. In implementing strategies to shorten the supply chain, companies should focus their management improvement measures on the perfect order rate (POR). This approach allows companies to identify and highlight the most important goals and operations in their supply chain policy (Jacyna-Gołda et al., 2019). It is also noteworthy that the POR-centered approach also enables firms to optimize the different processes and procedures in their warehouses (Jacyna-Gołda et al., 2019). A precise knowledge of the central objectives and a clear understanding of acceptable operations allows businesses to comply with federal regulations accurately and avoid delays in the delivery chain.
Thesis Statement: Shortening the delivery chain is the most effective and optimal way to condense the delivery time in the semiconductor industry affected by the COVID-19 global crisis, as it allows businesses to stock semiconductors, comply with US regulations regarding Chinese manufacturers, and have the transport means used unchanged.
Literature Review
When discussing supply chain management issues, many contemporary authors focus on the gaps that avert organizations from attaining high-quality logistics and manufacturing. For example, Centobelli et al. (2017) noted that the classification of green initiatives is one of the biggest gaps that have yet to be addressed by companies. This gap also includes a thorough evaluation of the performance of environmental sustainability, information, and mechanical technologies that support green initiatives. Such perspectives on supply chain management are crucial because they emphasize sustainability and the interconnectedness of businesses (Choi et al., 2020; Kumar et al., 2017). Many investigations on the topic rely on the benefits of social media and discuss the possible drawbacks of supply chain operations management that are affected by online instruments. Consistent with Choi et al. (2020), user privacy and data security are the two biggest gaps that cannot be ignored by supply chain actors. Thus, the emergence of new technologies represents a core benefit that cannot be utilized to realize the full potential of supply chain management initiatives.
A deeper understanding of how supply chain operations could be mediated represents an essential contributor to the utilization of innovative technologies in addition to social media data parsing. Similar to Centobelli et al. (2017) and Choi et al. (2020), Gracht and Darkow (2016) reviewed the impact of technology on supply chain management and touched upon the notion of green initiatives. This topic is recurrently reinforced in the academic literature because it represents a long-standing concern intended to help companies mitigate the lack of sustainability. The fact that researchers take different scenarios and investigate the process of supply chain design shows that experience and cumulative knowledge are crucial for a better understanding of how to shorten the delivery chain while remaining in line with the corporate objectives and current supply chain principles (Gracht & Darkow, 2016; Speranza, 2018). Supply chains across the globe constantly go through adjustments that cannot be considered either unnecessary or minor, especially with technologies evolving on top of them.
Discussion
The first recommendation that underlines the importance of shortening the delivery chain for manufacturers of semiconductors is the expansion of collaborative planning. The value chain has to be altered as well so as to provide manufacturers with an opportunity to attain larger reactions in supply and instigate the bullwhip effect (Stopka, 2017). The majority of cycle times are rather long, so any kind of disruption could be a devastating factor for semiconductor manufacturers. Irreversible cost implications cannot be ignored because planning has to be completed in a collaborative manner in order to maintain local supply chains as well. In accordance with Jacyna-Gołda et al. (2019), semiconductor manufacturing depends on demand-supply balance because of how the industry manages variations in collaborative planning among crucial stakeholders. This ultimately means that key value chain players affect semiconductor manufacturing and design to a certain extent because of the lack of stricter management. With this information in mind, more companies will be able to mediate their position in the market while protecting their image and products.
Another reason why shorter delivery chains could benefit semiconductor manufacturing is the existence of various suppliers that have to be managed by constructors. This approach is needed to gain continuous access to the ability to manage capacity risks and restructure the existing value chain (Centobelli et al., 2017). The increasing popularity of semiconductor manufacturing across the globe makes it crucial to shorten the value chain and remain consistent in terms of releasing new products continually. Consumers will also have a chance to explore innovative products and technologies and also provide feedback to improve manufacturers’ responsiveness and performance (Kumar et al., 2017). Supplier risk management has to be included in the list of essential practices because numerous similar strategies failed in the past due to inattentiveness and lack of effort. A detailed analysis of risks is going to become a shortcut for semiconductor manufacturers, as they will have the opportunity to predict market fluctuations. A foreseeable response to relevant changes in the industry is going to shorten the delivery chain in a natural way, allowing manufacturers to implement green initiatives without slowing down any of the existing processes.
From the point of view of supply chain management, another significant variable that has to be covered is manufacturing itself. Consistent with Gracht and Darkow (2016), optimization of business processes is also required. Currently, there are numerous new technologies that might become the future of semiconductor manufacturing (machine learning, artificial intelligence, etc.). The immense capital that had to be allocated to support semiconductor manufacturing in the past can be assigned quite differently nowadays. Even the smallest disruptions could affect the industry in an irreversible manner, so manufacturers have to keep up with the technological progress and ensure that schedule delays are eradicated (Stopka, 2017). Capacity utilization is going to be optimized and improved together with manufacturing resilience, creating room for innovative manufacturing methodologies. This means that the majority of industry moguls can become unreachable by simply altering their supply chains in response to the changes that have occurred over the past two years due to the Covid-19 pandemic (Choi et al., 2020). Not all companies have the opportunities and resources to respond to such drastic transformations in a timely manner.
A thoughtful review of logistics and transportation concepts could become the key to measuring essential supply chain attributes and introducing respective changes. Even though the job itself remains the primary focus for many organizations, a shortened delivery chain can be best developed and deployed within an environment where supply chains are capable of such activities (Kumar et al., 2017). Thus, supply chain management should focus on supporting the transportation infrastructure and ensuring that all areas are reachable. The introduction of new strategies and efforts should be justified by the question of specialization, where logistics employees would be required to expand their knowledge of manufacturing and delivery. That would become their opportunity to contribute to organizational success during brainstorming sessions and the implementation of new supply chain management strategies (Speranza, 2018). By doing this, employees are going to gain more experience while only resorting to evidence-based solutions. Therefore, a shortened delivery chain could be a consequence of a streak of operational management decisions aimed at implementing new logistics solutions.
Semiconductor manufacturing relies heavily on operational research and the effectiveness of approaches to logistics. Hence, the key priority for many researchers in the area is to make sure that the existing decision-making processes are going to be supported by technology (Kumar et al., 2017). This would help supply chain managers achieve a higher grade of sustainability while ensuring that reasonable operational research can be conducted with the available entry data. This also means that the current developments in the area hint at the need to review supply chain management strategies more often. The semiconductor industry might benefit from shortened delivery chains because of the increased efficiency of the given transportation system (Choi et al., 2020). Knowing that technological evolution is practically unstoppable, researchers have to consider new ways of improving delivery chains and creating room for stronger management and economy. Green initiatives supported by Centobelli et al. (2017) have to be prioritized as well if the industry expects to attract more followers and create supply chains that save time and money without affecting the environment. Hence, sustainability is the cornerstone of altering delivery chains and developing a stronger organizational supply network.
One more problem that can be resolved with the help of shortened delivery chains is the introduction of changes into the current product platform. The inherent flexibility could be an essential way for semiconductor manufacturers to align their processes against a completely new framework (Choi et al., 2020). The industry responds positively to such changes because numerous manufacturers are keen on developing their unique platforms instead of working collaboratively on launching a unified platform. With consumer demands becoming exceptionally complex nowadays, it can be harder for semiconductor manufacturers to adhere to preset strategies in the long run (Speranza, 2018). Shared technologies are going to expand horizons for semiconductor manufacturers, but only in the case where they simplify their processes and reduce development cycles. In this case, a shortened delivery chain is going to become an exclusive advantage possessed by organizations where management units prepared themselves for challenges revolving around innovations. Technology should never be underestimated, especially when new developments tend to create additional rewards for the ones using them.
The ultimate objective to meet is to ensure that transportation options are carefully reviewed and altered to reflect the needs of the given manufacturer. From logistic planning to the execution of the product development strategy, constructors have to pay attention to the supply chain and its dispersion grade (Centobelli et al., 2017). In other words, transportation is one of the unique variables that control supply chain management and affect lead times and project phases. Every other generation of semiconductors requires a much more flexible and exquisite approach to transportation, so unwanted damages could become a crucial problem for manufacturers (Gracht & Darkow, 2016). In order to avoid this issue in the future, a shortened delivery chain should be implemented to optimize the cost of logistics and capture the required industry growth. It can be recommended to focus on planning initiatives more often in order to make sure that semiconductor manufacturing is a premeditated process that can be altered on the fly.
Conclusion
Shortening the delivery chain is the best possible solution for many manufacturers of semiconductors because of the consistent growth that the industry sees, even in light of the Covid-19 pandemic. The existing evidence shows that the growth is going to continue relentlessly, improving organizational incomes and reducing numerous corporate risks experienced by manufacturers. The increasing demand paves the way for additional challenges that have to be resolved by semiconductor manufacturers with the aid of hardware and software solutions that improve production lines. The possibility of skipping some of the crucial problems from the past increases the chances of manufacturers to shorten the delivery chain and ensure that the supply-demand balance is preserved. The market cycle has continued to evolve over the course of the past two decades, making it harder to develop a viable product platform and develop essential partnerships. Semiconductor manufacturing requires new trade policies and actions that will be taken to shift the market and make the best use of the available opportunities.
Based on the evidence acquired within the framework of the current paper, it may be concluded that the semiconductor industry can still be described as rather unstable due to natural disasters and geopolitical relations taking a toll on both companies and consumers. These challenges could have an irreversible influence on semiconductor manufacturing supply chains and their responsiveness to global market alterations. Future improvements depend on numerous factors, such as production planning and relationships with suppliers, where the true potential of the majority of manufacturers is yet to be discovered. The trend of constructors becoming more and more independent also reflects the need to address transportation requirements and make necessary changes to product platforms. This would lead to the creation of regional manufacturing hubs where the given delivery chain will be reduced to a reasonable minimum. In the nearest future, semiconductor manufacturers are going to be required to address their procurement workflows and communicate with consumers more often.
References
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