The Issue
Warehouse workers across Germany have announced plans to go on a 48-hour strike, citing long-standing grievances over pay, working conditions, and the lack of progress in ongoing negotiations for better labor contracts. The strike, organised by the country's second largest trade union Verdi, is set to disrupt operations in some of Germany's key logistics hubs, which play a crucial role in the European supply chain.

The workers' demands include a substantial pay raise, improved safety measures in the workplace, and more flexible working hours to ensure a better work-life balance. This move comes after months of unsuccessful talks with employers, pushing the workforce to resort to industrial action as a means of making their voices heard.

Estimated Impact
You rely heavily on semiconductor components for manufacturing and innovation across your product lines. As a result, the shortage is estimated to:
Increase costs and create shortages for parts that include of semiconductors
Create production delays and challenges in inventory management.
Delay shipments and create uncertainty in launch dates for new products.

Suggested Actions
Immediate Inventory Review: Begin by conducting an in-depth inventory review to identify which components rely heavily on semiconductors. Prioritise components critical to production.
Supplier Communication: Initiate dialogue with current semiconductor suppliers to understand their constraints and production timelines. Explore the possibility of securing additional stock.
Alternative Component Evaluation: Identify alternative components or technologies that could temporarily substitute for semiconductors in critical areas of production. Start with a small-scale pilot.
Prioritise Key Products: Prioritise key products and assess their semiconductor dependency. Focus on securing supply for these products to minimise potential delays.
Supply Chain Transparency: Explore supply chain visibility tools to monitor semiconductor-related inventory levels and anticipate any impending shortages.