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Finding a Supply Chain Management Consultant to Overcome a Challenge

Global microchip shortage affects business

Microchips make modern electronics work. The electric circuits of the tiny devices are needed to fuel devices across industries, including cars and smartphones. According to a survey from the U.S. Department of Commerce, demand for microchips was up to 17% higher in 2021 compared to 2019. The survey found that inventory fell due to supply chain disruptions during that time. The result is a high-demand, low-supply market for microchips.

Apex’s client, a lower middle market private equity (PE) firm, approached Apex for help with a microchip shortage affecting its portfolio company, a leader in quick-turn PCBA and on-demand manufacturing. The PE firm was looking to Apex Leaders to connect it with an advisor who could help solve the immediate need and create a plan for the future.

Uncovering expertise requirements

Apex’s process starts with a comprehensive intake call. During this call, the PE Client expressed interest in connecting with current leaders of a leading global electronic components distributor. Apex also suggested contacting former employees of the microchip distributor. By connecting with both current and former employees, the PE firm and its portfolio company would be able to gather a range of insights pertaining to potential strategies to resolve the parts shortage with the existing supplier, understand the supply chain challenges more fully, and formulate a longer-term strategy for supplying these critical components.

Building strong relationships

With the criteria in hand, our research team identified and vetted potential advisors. The Apex team has a wealth of knowledge and experience in the industrials sector and has built strong relationships with executives and operators in the space. Leveraging this knowledge and its vast network, Apex introduced the PE firm and portfolio company to a retired senior executive of the requested company.

After Apex connected the Client, the individual was able to make additional introductions within the supply chain, significantly improving the portfolio company’s dialogue around fulfillment of the critically needed parts. 

Sourcing success

Through collaboration with the former executive, our Client’s portfolio company mitigated its urgent sourcing challenge and obtained valuable input to help inform its longer-term sourcing strategy.

Helping clients grow their portfolio companies

At Apex Leaders, we support our clients throughout the investment lifecycle – exploration, evaluation, and post-acquisition. Our services extend to your portfolio companies at no additional cost as part of your partnership with us. We use the same bespoke process to match management teams with expert advisors that can provide key insight and can assist in developing growth strategies to increase value.