Supply Chain Challenges Facing the IT Industry

Supply Chain Challenges Facing the IT Industry

Everywhere you look today, prices are up and inventory is down. Supply chain woes plague every industry, and IT is no exception. Most experts predict that these issues will be with us at least through 2023 and perhaps even longer. How did we get to this point and what can we do to overcome these supply chain challenges?

How Did We Get Here?

The situation in which we find ourselves did not come about overnight, nor did it occur due to a single cause. Multiple situations fed into the current supply chain nightmare, including the trade war with China under then-President Trump, as well as the ramifications of COVID-19. The trade war started the trend toward scarcity and higher prices, and then manufacturers and distributors shuttered operations to help limit the spread of COVID-19, which further accelerated the situation. 

How Has It Affected the IT Industry?

The situation has created a cascade of challenges for the IT industry, including the following:

  • Production shutdowns in 2020 exacerbated global demand for chips and IT hardware, increasing demand and prices.
  • Shortages in raw materials have led to ongoing slowdowns in the production of virtually everything, from cases and chassis to printed circuit boards.
  • Businesses have been unable to meet customer demand due to a shortage of materials and increased labor costs, which has affected their ability to scale revenue.
  • The costs of everything have risen as a result, from raw materials to labor to the fuel needed to move container ships across oceans.
  • Retailers are experiencing sustained outages, which means that customers are unable to purchase the IT hardware necessary to expand their operations. That has further knock-on effects that affect company profitability and stability.

How Will Things Play Out?

Being able to plan for the future is critical for IT directors and data center managers. While the crystal ball remains murky, we can make several informed predictions about how things will play out, at least through the next year or two.

  • Look for costs to remain high as long as material and labor shortages continue.
  • Expect to find it challenging to source parts for your data center for at least another year, but possibly more.
  • The demand for call center hardware will continue to increase while the global supply is expected to remain static, further increasing costs and competition.
  • Lead times for existing and future orders continue to grow, so plan to wait longer than anticipated for new equipment.
  • With the ongoing supply chain issues and shortages, crucial hardware in your data center may hit end of life (EOL) or end of service life (EOSL) with no replacement parts available. It’s important to have a plan for these situations.

How Can Riverstone Help?

At Riverstone, we remain resilient in an industry rocked by supply chain woes. Our position as one of the world’s leading third party maintenance providers means that we are uniquely positioned to offer help in several key ways.

Fast Shipping

Extended shipping times are the norm today across virtually all industries. However, we’re able to offer shipping on-demand, rather than forcing you to wait four to six weeks. How do we manage this? It’s because we have the stock on hand within our global network of forward stocking locations

Significant Savings

In a world marked by rising prices, Riverstone offers a breath of fresh air. We’re able to help you save a dramatic amount of money over what OEMs are charging – between 40% and 80%. That savings allows you to reinvest in other areas of the business and cover the costs of other pertinent needs.

Prolong the Life of Existing Hardware

In a time when new hardware is virtually inaccessible, it’s more important than ever to maximize the lifespan of your existing technology. At Riverstone, our expert engineers can extend your hardware’s lifespan considerably. In fact, we routinely help our clients add five to 10 years beyond the official end of service life. That could give you more than enough time to wait while the supply chain corrects itself, and prices and inventory levels return to normal.

Stop-Gap Coverage for Short-Term Needs

Today, IT managers and data center directors need multiple solutions to complex needs. At Riverstone, we can offer short-term, stop-gap solutions that allow you to continue operating efficiently while waiting for the hardware you ordered to arrive months down the road.

Pre-Owned Hardware

Riverstone Recertified hardware offers like-new performance at a fraction of the cost of brand-new components. What’s more, there is no shortage of pre-owned hardware; it’s readily available on the secondary market and available for immediate delivery. We give you the means to meet your current hardware needs without waiting, while simultaneously saving you a significant amount over what you would pay for new manufacturer releases.

Let Riverstone Help You Overcome Supply Chain Challenges!

While the IT industry’s supply chain will take years to get back to normal, you don’t have time to wait. Riverstone offers the critical solutions you need right now, coupled with the ability to save money and hassle. Contact us today by calling 877-819-6757 or speaking with one of our representatives live.