The disruptions in global IT supply chains are currently among the most extensive and long-lasting in recent memory. Adding to the existing problems caused by extended OEM lead times, businesses are now also having to deal with hardware surcharges. While there may not be a quick resolution to these challenges, there is no need to wait for a distant future to find solutions.

Lead Time Causes

The lead times for OEMs have been increasing, mainly because of this disruption in the IT supply chain that was cause by the pandemic-induced travel and transport restrictions and delays. But there are also additional factors contributing to the problem.

Factors such as higher freight costs, reduced freight capacities, shortages of raw materials, and increased competition among various industries for chip supplies have compounded the issue, making it even more challenging for OEMs to manage their lead times.

As a result, companies are suffering the consequences of extended lead times, which are further compounded by the high demand for remote work infrastructure due to the economic downturn. Unfortunately, businesses now face the added challenge of hardware surcharges.

What can Pre Rack IT do to Help?

• Shipping on demand
• Significant savings compared to the OEM
• Post-warranty maintenance and support

Rather than relying solely on traditional OEM channel partners to source IT equipment, many companies are turning to the secondary market. Secondary market distributors have more flexibility than OEM partners as they are not bound by partnership agreements, allowing them to source products from a range of leading manufacturers at the most competitive prices. This enables them to meet their customers’ needs without additional charges, offering a solution to lengthy lead times and hardware surcharges.

This approach can provide significant benefits to businesses looking to maintain business continuity, support remote workers, or keep operations running during a supply chain crisis.