How Data Centers Should Navigate During The Supply Chain Crisis

How Data Centers Should Navigate During The Supply Chain Crisis

The supply chain is among the core aspects that can affect the performance of your data center. To keep up with the operational demands data centers deploy a wide range of solutions to keep the supply chain straight up and smooth.

We all know if the supply chain is disrupted data center is the industry that is affected the most. Where decommissioned equipment needs to be replaced as soon as possible and you cannot afford a single minute of downtime.

From managing inventory of sensitive and hard-to-find equipment to managing returns and replacements there is much more going on in a data center. Major delays occur when the data center managers don’t plan ahead of time and plan according to the geographical location.

Data Centers Should Navigate During The Supply Chain Crisis

Key players in this industry have significantly scaled data center development and deployments around the globe. This has only become possible through deploying effective planning and management strategies. Managing the global supply chain of equipment has become a major part of learning for data center operators. Since covid has struck the supply chain industry so hard data center developers have come across a variety of options when planning cross-border deployments. Some of the major strategies are as follows:

  • Ordering ahead of time
  • Increasing critical equipment inventory
  • Working with more than one sourcing company to ensure procurement of hard-to-find equipment
  • Increasing spot purchasing even on premium prices to meet short-term demands
  • Strengthening the supplier relationships
  • Defining more efficient ways of forecasting

Let us take you through each of these steps to give you a better understanding. This will help you plan efficiently and avoid any supply chain crisis.

Ordering ahead of time

Ordering ahead of time is one of the best ways to avoid any uncertain supply chain pressure. This should be the top priority of data center managers. Incorporating increased lead time in equipment delivery should be the top priority. This aspect is interrelated to forecasting performance. The better you forecast the better will be your supply chain management.

Increase critical equipment inventory

Since covid data centers have invested more in better storage and warehouses to accommodate the increased inventory. Critical equipment or equipment that is hard to procure often becomes a major problem. That is why you should plan and order such equipment more in quantity. This will significantly require larger storage spaces or warehouses.

Working with more than one sourcing/supplier companies

Focusing on just one supplier may not be a good idea. The Covid crisis has played a vital role in making us understand this phenomenon. This will not only help you in sourcing the equipment at the right time but also it can bring in more cost-related benefits. You might end up finding suppliers offering more convenient pricing.

Increasing spot purchasing

Looking outside the usual network of suppliers brings in more possibilities and more opportunities. Just to meet the delivery deadline spot purchasing can help save significant supply chain delays. Though the costs remain high with the increase in demand this can help restore critical data center operations.

Strengthening the supplier relationships

As we all know an efficient supply chain system can never exist without a strong supplier relationship. Strong relationships with suppliers can help you achieve a standardized design. This standardization along with the significant innovations can help you do better at scale purchases and better pricing.

Defining more efficient ways of forecasting

Forecasting is the key aspect of data center management because equipment availability is the key factor that affects this industry. Be it slower buildouts or shortages from the chip manufacturers all these aspects contribute to a supply chain problem. That is why efficient forecasting is the key to bailing out of the situation. From warranty replacements to sourcing new equipment better forecasting management can help reduce the risk.

Looking for a reliable sourcing company for your data center? One Union Solution is actively helping global players of the data center industry in sourcing and procurement of IT, Telecom, and data center equipment in more than 170+ countries.
INQUIRE NOW and we will get back to you with a solution.

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