Building Supply Chain Resilience with Eltwin Group

After another record year, with most supply chain constraints behind us, we are now seeing reasonable lead times and excellent spot buying opportunities due to many distributors and companies offloading excessive stock. However, we must be cautious with these opportunities. The electronic market is back on a growth path, especially in the power electronics area, which has benefited from constant growth from the green transition and electrification for years.

Eltwin has successfully enhanced supply resilience by working with our partners. During the last three turbulent years, our strategy with key suppliers and OEMs has secured clear end-to-end visibility of demand and constraints in the supply chain. We have built an agile organization and manufacturing footprint that adapts and maintains a high service level, supporting significant growth. This has only been achieved by promoting collaboration among all stakeholders.

The fight is not over until we can demonstrate that our supply chain is robust and consistent in bad and good times. Even now, when the electronic market is calm, we must avoid focusing solely on traditional sourcing areas like cost, efficiency, and time to serve. We need to use this time to recover, reflect, and strengthen our supply resilience by learning from the past few years to build a stronger foundation.

At Eltwin, we continue with our dual platform strategy, maintaining our near-shoring manufacturing and sourcing strategy. We review and align our inventory strategy, safety stock levels, lead times, restocking models, and contingency plans with our partners. We update our critical supplier strategies and maintain our headroom at key suppliers, preparing for the next upturn. We are concerned that huge supply uncertainties, escalating lead times, prices, and allocations could return sooner than we would like. With year-on-year growth of 15.8% in the general electronic market, nearly back at record levels, even a small bump in the supply chain will have a huge impact and could trigger a ripple effect seen many times before.

Vulnerability is increasing. Geopolitical tensions are not easing, trade and logistics constraints are on the rise, and potential natural disasters or a new pandemic loom. Now is not the time to reduce the importance of building and strengthening end-to-end supplier relationships.

Eltwin is ready to serve our partners and collaborate with new partners for a better, greener tomorrow. If you would like to learn more about how we can collaborate and build supply chain resilience into your power electronics sourcing strategy, please reach out to Eltwin by contacting our Purchasing Manager Ulrik Petersen, our Sales team Ole Kjærsgaard Mortensen, Lasse Zacho Agerbæk, Mitch Gulseth, Arno Manier or CEO Jens Ebbesen.