COVID-19: Sony Electronics’ supply chain faces instability
The impact of COVID-19 continues to create instability within the supply chain industry, with its recent target being Sony Electronics.
In a recent statement made by the company, Sony’s electronics segment is experiencing supply chain issues. The issues come as a result of its manufacturing plants closing operations in China and Malaysia, as well as the company facing an unstable flow of resources from its suppliers in Asia.
In January, the technology company shut down four of its manufacturing plants located in China. Although since then the plants have reopened and began to restart operations, the company reports that the issues within the Chinese supply chain remains the same.
Meanwhile in Malaysia Sony’s manufacturing plants remain closed due to local government mandates, and has also been ordered to close its manufacturing plant in Wales by the UK government until April 20.
"Sony's primary customers in this segment are smartphone makers who rely on supply chains in China, and although recovery in these supply chains has led to sales gradually returning to normal levels, there is a risk that going forward sales could be impacted by a slowdown in the smartphone market," commented Sony in a company statement.
Other impacts to the company include, movement restriction across national borders, providing Sony with the challenge of getting its engineers to manufacturing hubs to help with new product launches or giving manufacturing instructions.
On a more positive note the company has not seen its imaging and sensing solutions face a material impact as of yet, however the company did note that there is a risk for sales to be impacted by the eventual slowdown of the smartphone market. "Depending on how the situation evolves, that impact could be large enough to eliminate the entire amount of the upward revision," added Sony.
"Sony expects that its consolidated financial results will continue to be impacted by the spread of infection from COVID-19 in the fiscal year ending March 31, 2021, which begins in April this year […] It is possible that the spread of COVID-19 could lead to delays in account closing procedures and other operations, making it difficult for Sony to proceed with this announcement as planned."
For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.
Image source: Sony
ServiceNow pumps millions into EU service compliance
ServiceNow, the digital workflow company, has announced a multimillion euro investment to help EU customers meet compliance requirements.
The legal, technical and organisational safeguards will help companies to comply with the the Schrems II judgment and European Data Protection Board (EDPB) Recommendations issued in June 2021.
ServiceNow’s investment means all EU-hosted data will be exclusively handled within the EU, and the cloud-hosted digital workflow provider claims its solution will come “without impact on current delivery and service”.
ServiceNow upgrade: free of charge
There will be no cost for current customers to opt in to the data compliance solution, even though ServiceNow is investing an unspecified multimillion euro sum and hiring more than 80 new staff across the bloc.
Mark Cockerill, vice president legal, EMEA and global head of privacy at ServiceNow, said: “With any regulation change, cloud services companies have a choice. They can adopt a ‘wait and see’ approach or get proactive and help customers and partners innovate. At ServiceNow we are on the front foot, continually investing in our customers, allowing them to operate with the highest level of choice and control over their EU data.
ServiceNow upgrade: ‘peace of mind’
“Our new EU-centric service delivery model will give our current customers and partners peace of mind. For customers and partners operating in highly regulated industries, or in the public sector, or those that have yet to make the switch to the cloud, this model gives them certainty and simplicity when selecting the cloud service that best suits their needs.”
Carla Arend, lead analyst, cloud in europe for IDC, said, “The Schrems II ruling has led European organizations to revisit their cloud-related data protection policies and processes when it comes to international data transfers through cloud services.
“Contractual, privacy, and security safeguards and the assurance that data will be kept and handled in the EU help European organizations to comply with European data protection laws while taking advantage of global cloud platforms. Vendors, such as ServiceNow, that invest to support their customers in response to this ruling are providing essential choice to their customers.”