Chip shortage impacting supply chains of small to mid-sized businesses

Supply chain challenges are ubiquitous and pervasive, with the persistent chip shortage generating ripple effects across numerous industries. The automobile sector is one of the most hit, with chip shortfalls slowing manufacturing and lowering sales. Semiconductors, often known as chips, are essential components in the production of electronics products such as cell phones, cameras, and computers. Due to a manufacturing bottleneck and chips shortage, the auto industry has been compelled to reduce output and delivery targets, resulting in a slew of accounting scandals. Market analysts expect that the chip shortage issue will be active in the market for more than 1-2 years. Small and medium businesses have been affected the most due to chip shortage since they have supply chain and financial constraints. Many small organisations that require chips are already rethinking their long-term buying strategy. Many businesses, particularly those in the automobile industry, are realising that the approach of "just-in-time (JIT)" inventory is no longer sustainable in competitive terms.