Acer predicts July will test tech supply chain
The earthquake and tsunami struck Japan and crippled the nation’s infrastructure in March, but one company is projecting the most critical tech supply chain moment will happen in July.
Jim Wong, corporate president of Acer, the world’s third largest PC maker in terms of shipments, said on Wednesday that the Japan disaster hasn’t tested the tech supply chain quite yet, as manufacturers and suppliers have been able to rely on idle stock.
Wong also said that March, April and May have traditionally been slower months for the tech supply chain, which has yet to face the full brunt of demand.
That’s about to change, however. Wong predicts that the tech supply chain will really be “counting on the real output from factories” next month, according to a report in the Financial Times.
Wong continued to say that sourcing parts is expected to be the biggest issue facing companies. As part of a traditional risk management practice, most companies source parts from two or more locations, meaning if disaster strikes one area, part shortages can be mitigated.
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Reeling from the effects of the disaster, downsizing and factory closures translate to fewer locations a company can source parts from, which will put the tech supply chain at even greater risk.
While the initial economic shortfall from the Japan disaster has been far less than what was originally predicted, major hurdles still exist for suppliers and manufacturers, especially in the tech supply chain. July will be a critical month, showing that the global supply chain is still feeling major effects from the Japan disaster four months after the 9.0 earthquake.
SAP Ariba to digitise procurement for Expo 2020 suppliers
The global trade event, this year hosted in Dubai, was rescheduled from last year and will now take place between 1 October 2021 and 31 March 2022.
As the event’s Innovative Enterprise Software Partner, SAP Ariba solutions will fully digitise and automate the procure-to-pay lifecycle, providing a streamlined experience for thousands of market leading, global suppliers and strengthening the global supply chain with enhanced transparency and efficiency. The cloud-based platforms operate through on SAP Ariba’s UAE public cloud data centre and connects to the Ariba Network.
Expo 2020 "a long-term investment"
Mohammed AlHashmi, Chief Technology Officer, Expo 2020 Dubai, said the world trade event is “a long-term investment in the future that aims to enhance opportunities for sustainable business connectivity and growth”, which stretches beyond Expo 2020’s six-month window.
“Our partnership with SAP is an example of what can be achieved with the invaluable support of our technology partners to host one of the most digitally advanced World Expos ever,” he added. “The implementation of SAP Ariba solutions has transformed our end-to-end procure-to-pay cycle and helped set new standards of procurement automation for projects of this scale.”
To date, more than AED 1bn has already been transacted by Expo 2020 suppliers through SAP Ariba. The platform promotes collaborative partnerships and allows registered users to participate in sourcing events, negotiate and initiate contracts, and centralise their invoicing and payments in real time.
Claudio Muruzabal, President of EMEA South, SAP, said: “Expo 2020 Dubai is demonstrating global best practices in digitising its procurement process with SAP Ariba solutions to help gain visibility into its spend, tighten collaboration with its suppliers, and achieve process automation, including completely paperless invoicing.”
About Expo 2020 Dubai
Expo 2020 will take place in Dubai and is the first of the long-running World Expos to be hosted in the Middle East, Africa and South Asia territory. The original World Expo, called the Great Exhibiton, was hosted in 1851 at the Crystal Palace in London, designed as a showcase for the innovations of the Industrial Revolution.
Expo 2020 was originally due to run 20 October 2020 to 10 April 2021, but was last year postponed in light of COVID-19 restrictions - though some business has already taken place virtually. The event will place greater emphasis on innovation in sustainable solutions through the Sustainability District, blending technology and culture. It is expected that around 70 per cent of the 25 million attendees will be international visitors.