📊Executive Summary

The article discusses the challenges faced by OEMs and contract manufacturers due to the global semiconductor supply chain crisis. It highlights how double ordering to create safety stock has led to excess inventory, which can be more damaging than the production stalls it was meant to mitigate. The article emphasizes that while safety stock can be beneficial in certain contexts, it can also lead to increased costs and inventory write-offs when not managed strategically. The recent macroeconomic pressures have further complicated the situation, leading to a decline in consumer demand and leaving manufacturers with surplus stock that is difficult to offload....