Procurement teams have witnessed the drastic market swing in recent years. From 2020 to 2022, widespread shortages disrupted production plans. By 2023, the challenge moved to excess inventory. Entering 2025, the dynamics are more nuanced:
- Consumer-led categories - PCs, smartphones, and general passives—have largely stabilized.
- High-growth sectors - AI, automotive, and defence—are driving a new wave of concentrated scarcity.
For senior the leaders, this shift carries important implications:
- Risk is now sector-specific. A single BOM requires multiple risk calibration; treating all parts the same is no longer feasible.
- The cost of missteps has escalated. The capital may trap due excess commitments in stable categories, while underestimating choke points risks to increase of production halts.
- Leadership expects foresight. Management is not going accept the “Unexpected shortages”. Procurement must come with new ideas to deliver intelligence and proactive strategies, not just transactions.
In this environment, the traditional just-in-time model is inadequate. The path forward is resiliency-first: segment the BOM, establish intentional buffers, and secure capacity in the categories where it is eroding fastest.
