Leveraging the supply chain to balance shortages and inflation

As supply and demand fall closer and closer toward pre-pandemic status across the globe, ICAPE Group continues to take the guesswork out of purchasing and logistics and help our clients feel secure in their supply chain.

2022 had the world rocking from unprecedented circumstances; war in Europe has led to inflation, an energy crisis that spiked by 49% since 2021 in the U.S. alone, issues with air and sea transport, and an overall shaken market that led to both customers and suppliers scrambling with procurement issues. With continued uncertainty for the future, ICAPE Group gives peace of mind to customers by bridging the gaps and lessening the impacts of the stabilizing supply chain.

Source: ICAPE Group

ICAPE Group closely follows trends in relation to supply and demand. While supply stabilizes, demand fluctuates from excess inventory purchased during the pandemic. In the first quarter of 2023, in part due to high inflation and tightening monetary policy, the economy is expected to shrink by 0.4%. To ensure pricing stays competitive, ICAPE Group closely monitors the suppliers of our partner factories to stay up to date on the market. Being local to these factories provides excellent leverage we can use to the advantage of our customers. This is a unique value that ICAPE Group provides, as we can reach the necessary decision-makers to negotiate costs.

Different customers have different needs, and our AVL (approved vendor list) is how we match the perfect partner factory for these needs. Our partners on this list have been with us for years and together we’ve crafted a perfect partnership of mutual respect and understanding. In-house, our FAE department (Field Application Engineering) can guide customers on more cost-effective materials and strategies to reduce the expense of their project. Knowing what a customer wants based on pricing and materials helps us match the perfect factory to meet those needs and reduce costs.

Source: ICAPE Group

Crafting solutions for our partners and customers also include logistics. There is a strong relationship between transportation and the world market, and ICAPE Group tries to remain flexible to frequently stay close to the price market. Contracts are short-term and often renegotiated, entries in Europe and volumes of orders are consolidated, and internal strategies are discussed with the customer to lessen that final price.

The ongoing energy crisis makes it difficult to predict when prices can be expected to match pre-pandemic levels. As the conflict in Europe continues, however, ICAPE Group is facing a very positive 2023 forecast for us and our customers, and we are expecting stronger relationships and further growth this upcoming year.

———————————————–

ICAPE Group is one of the world’s largest providers of Printed Circuit Boards and Custom Technical Parts. We’re able to provide Quick Turns through Mass Production and are your source for all PCB Technologies. Through ICAPE Group, we provide Design for Cost Solutions, DFM, PCB Lab Services, VMI/CMI, and Sales & Engineering support.

Website: www.icape-group.com