📊Executive Summary

The article discusses the significant impact of logistics and sourcing costs on electronics manufacturing, highlighting the shift of production to Southeast Asia and the rising costs associated with logistics and component shortages. It notes that while semiconductor component costs have decreased over the years, recent volatility has led to increased prices, particularly affecting low-volume producers who rely on brokers. The article emphasizes the importance of understanding these cost drivers, especially as freight costs normalize in 2023 after a spike during the pandemic. This context is crucial for procurement teams to navigate the current landscape of rising costs and potential supply constraints....