iSuppli Corporation : Applied Market Intelligence

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The electronics supply chain has grown into a highly complex web, spun from countless interdependent relationships spread throughout the globe. If everything runs smoothly, the electronics industry can achieve remarkable success. However, if just one link in the chain fails, the repercussions can be catastrophic for companies in completely different industries and regions. It’s not hard to find examples of such supply-chain failures; trade and business publications during the last few years have reported such events, including:

Booming demand for digital imaging products spurs a shortage of sensors, causing one major handset maker to miss its production forecasts and its quarterly earnings targets.
Shortages of drivers and glass constrain production of certain types of LCD panels, sending prices soaring.
Poor communication along the supply chain leads to an unprecedented buildup in semiconductor inventories, contributing to the worst downturn in the history of the chip industry.