Global Semiconductor Shortage: Impact To Shipping Times
Due to a global shortage of semiconductor production, many businesses are feeling the effects. Not only are car manufacturers hit by this, but fleet management organizations as well. Which as a result, could impact numerous fleets around the world.
A Deeper Look Into What Caused The Shortage
In recent news, a semiconductor or computer chip shortage was noted. While there is no definite cause for this, many are accounting the shortage to be a result of various factors which include the following:
- Factory shutdowns that happened as stay-at-home orders were put into effect
- An increased need of technology required for work-from-home orders
- A surge in cryptocurrency
- The 3G network shutdown prompting fleets to upgrade hardware
All of these play together to result in there not being enough computer chips for the new development of certain products. While it’s easy to assume the impacts to the production of computers or other computer-chip dominated items, other sectors are feeling the impacts.
How Fleets Will Be Impacted
It is important that fleets in all industries pay attention to these events as it could impact their operations. If there is certain hardware which requires semiconductors, it could mean that fulfillment will be delayed on a global scale.
What The Shortage Means For GoFleet Customers
GoFleet customers should keep in mind that Go Devices use semiconductors with the hardware. The computer chip is the core of the device to allow data to be collected and transmitted to the various solutions fleets are leveraging in MyGeotab. Without the chip, the devices would not be able to display real-time information or be interconnected with your fleet.
What You Can Do
We are urging our customers to review their yearly plan and factor is the global shipping delays for new hardware. Some delays will be upwards of 60 days and depending on the hardware requirement, it means that fleets will need to put in purchasing orders earlier.
If your fleet is thinking of purchasing specific hardware for compliance or network updates in regard to the Canadian ELD Mandate or the 3G network shutdown, the global shortage must be taken into consideration.
If you would like to learn more about how the shortage in semiconductors may impact plans for your fleet in 2021, please contact our Success Team today. We will work with you so you can put a plan in place to ensure your organization feels the least amount of disruption.