Fossil fuels, such as coal, oil, natural gas, are used in many countries. But in some countries, the use of alternative sources of energy, including wind and solar power, are encouraged. Is this trend a positive or a negative development?

The

shortage

of electronic

chips

is one of the major problems faced by several industries, including the

food

industry.

This

global

shortage

occurred,

due to

the pandemic, which forced the

manufacturers

to drop production. Electronic

chips

are the major component in

food

processing machines.

Therefore

, scarcity of

chips

affects the

food

companies

to continue with their processing and testing of

food

products. Even though the demand and the situation to produce

chips

are not in the favor of

manufacturers

, many

companies

still take a chance to pursue production. Cause of

shortage

: The major reason for the

shortage

is

due to

the COVID-19 outbreak, which led the global market to halt.

Manufacturers

were unable to receive the raw materials needed for producing the

chips

,

as a result

, chip production has to be paused. Another reason caused by the pandemic is that supplies were stopped in the port, and unable to ship, resulting in a lack of materials in the industry. Demand for the product started to pile up, and

manufacturers

could not keep up with the pressure mounting. Business strategy :

Companies

should inform the

manufacturers

, of the precise quantity of the products required to meet their needs. So that they will get a clear idea about the requirement and proceed

according to

that.

Also

,

companies

could reuse the used

chips

to tackle the situation under pressure. Organizations can get aid from similar sectors, who doesn't require the

chips

urgently. Risks : Health care industries are at stake with the

shortage

of

such

electronic components, where most machines consist of these.

This

scarcity will be fatal,

due to

the rising of patients affected by several diseases. If an instrument or device for failed, it cannot be even get repaired which will be a serious problem.

Also

,

this

global dilemma will be an added advantage for the local

manufacturers

, who tends to use

this

situation to produce low-quality products, which can cause severe trouble in the health industry. Logistics: Shipping

also

plays a crucial role in sustaining the global market. All the ports were frozen

due to

the strike of covid, where no containers were allowed to transfer. A huge delay occurred over there causing a serious time lapse within the industries. Containers started to pile up over the port making a lot of mess, and the company paying a huge amount see allowed to transport the consignment,

whereas

others were kept still. Relationships with suppliers: Supplier-employer understanding is a major factor in succeeding in a business.

This

bond can only be strengthened by maintaining a good relationship with suppliers, continuous contact, and pure understanding. Clearing the finances at the proper time can

also

improve the relationship. Inventory management: Managing the inventory in a disciplined manner can increase the profit by a lot. Clearing out the unwanted stocks, storing the required materials, and balancing the inventory can help in on-time supply to customers.

This

will help to develop the relationship with customers.

This

can be assured only by proper planning and strategy.