Global Chip Shortages Threaten Healthcare Projects

April 13, 2021

 – Episode #

70

How important are chips to healthcare?  It turns out, pretty important.  We are starting to hear of lead times increasing significantly for all sorts of chip based equipment.  While the article isn’t healthcare specific, the situation will not be isolated.

FTA
Broadband providers are seeing delays of more than a year when ordering internet routers, becoming yet another victim of chip shortages choking global supply chains and adding challenges for millions still working from home.

Their supply chains have become a headache because sharp coronavirus manufacturing shutdowns a year ago were exacerbated by a prolonged surge in demand for better home broadband equipment, said Karsten Gewecke, head of European regional business for Zyxel Communications Corp, a Taiwan-based router-maker.

Since January, it’s asked customers to order products a year in advance, he said, because the lead time for components like chips from Broadcom Inc. doubled to a year or more since then. Zyxel is a major supplier of routers, with customers including Norway’s Telenor ASA and Britain’s Zen Internet.

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It turns out that we’ve dealt with this before.  I share from my experience on how we’ve addressed this before and the mistake you don’t want to make.

#healthcare #cio #cmio #healthit #chime #himss

https://www.bloomberg.com/news/articles/2021-04-08/next-victim-of-chip-shortage-will-be-your-home-internet-router

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Today in health. It, the story is 60 week delay on router orders shows the scale of the chip crisis. My name is bill Russell. I’m a former CIO for a 16 hospital system and creator of this week and health it a channel dedicated to keeping health it staff current and engaged. I want to thank our sponsor for today’s series healthcare.

They reached out about a year ago and said, Hey, we love what you’re doing. Really appreciate your mission to develop the next generation of health leaders. And we want to be a partner with this week in health it, and today in health, it, the rest is history, as they say, if you believe in our mission, as they do and want to support the show, please shoot me a note at partner at this weekend, health it.com. All right. Here’s today’s story.

This is from Bloomberg. Just pick this up this morning. Interesting. And it was published last week, and sort of coincides with some conversations I’m having with some CIO. So here, you go. Broadband providers are seeing delays. Of more than a year when ordering internet routers becoming yet another victim of the chip shortages, choking global supply chains and adding challenges for millions still working from home.

Running out of the right router would prevent a carrier for being able to add new subscribers to its network,

risking loss sales and an ever competitive broadband market. Their supply chains have become a headache because sharp. Coronavirus manufacturing shutdowns a year ago. Were exacerbated by a prolonged surge in demand for better home broadband equipment. Says, Carsten Galecki, head of European regional business for

Cell communications, corporate Taiwan based. Router maker. Since January, it’s asked customers to order products a year in advance. He said, because the lead time for components like chips from Broadcom Inc. Doubled to a year or more since then. Six sell is a major supplier of routers with customers, including Norway’s Telenor, ASA, and Britton, Zen internet. Ad Tran says the same thing. , no carrier has run out of routers completely yet, but the supply chain looks strained for the next six months. So it’s possible. According to go wacky, we have been very close several times. He said on a video call, it could still happen.

 

Even shipments already on route can escape global trade disruptions. Last week, six old routers were on and behind the evergreen ship, which blocked the Suez canal. According to Galecki. Broadcom did not immediately respond. You get the picture. Why am I talking about this on today in health? It, because

this isn’t just routers. This is chips. This means anything that runs in your data center on the desktop, even in that biomed device may become highly constrained in the next couple of months, if not, is already highly constrained. By. So what look at every project and determined equipment needs up to a year out.

Get with your partners and determine the supplies in their pipeline. Look at alternative suppliers of the equipment. You may like going direct with your PC supplier, but in these cases, you need to look into the crevices of the supply chain to keep your standards intact. Figure out a warehousing strategy in the event, you can’t get equipment. You have a choice to make delay the project or come off standard. I caution you to do that only in extreme cases.

I purchased used machines or even reallocate machines that have already been deployed in the enterprise to make that move a last resort. If it is impossible, make it an inexpensive short-term move and plan for early obsolescence of the non-standard equipment. Short-term project timeline wins are a bad objective when the result is more PC builds to maintain additional vendors to work with and complexity added to your environment. That is the opposite of what we need right now. We need more efficiency. We need less complexity. If I were a CIO today, that is how I would be thinking about this. That’s all for today. If you know someone that might benefit from our channel, please forward them a note. They can subscribe on our website this week, health.com or wherever you listen to podcasts, apple, Google, overcast, Spotify, Stitcher.

You get the picture. We are everywhere. We want to thank our channel sponsors for investing in our mission to develop the next generation of health leaders. Vmware hill-rom 📍 starboard advisers mcafee and a Reuben networks thanks for listening that’s all for now