‘Record year for Tiesse routers despite the shortage of microchips’. Interview with CEO Lorenzo Ciofalo

Tiesse, the Italian router and IOT vendor, has achieved a record year for the production and marketing of equipment. CEO Lorenzo Ciofalo: ‘So we have overcome the shortage of microchips’.

by Paolo Anastasio | October 14, 2021, 12:59 pm – www.key4biz.it

A record year is expected for the production and marketing of routers and telecommunications equipment by Tiesse S.p.A with a significant increase also as regards the shares of products exported to foreign markets. The chip shortage made itself felt this year.

Lorenzo Ciofalo, CEO of Tiesse S.p.A.
Lorenzo Ciofalo, CEO of Tiesse S.p.A.

But what were the strategies developed by the Italian vendor to overcome the shortcomings of microchips and the global supply chain crisis to achieve these results?

We talk about it with Lorenzo Ciofalo, CEO of the company.

Key4biz. Lorenzo Ciofalo, how did you manage not to slow down production but rather to increase volumes?

Lorenzo Ciofalo. As is known, the shortage of microchips is affecting many sectors from the automobile to the industrial sector. Tiesse uses many electronic components and microchips in its products and we have had to face the same difficulties as the competition, given the limited availability of components and with lead times of up to 50 weeks and significant price increases.

I can say that supply chain management is today one of the most challenging challenges ever.

Key4biz. So what was the formula for dealing with the crisis?

Italian production of Router in Tiesse

Lorenzo Ciofalo. Meanwhile, the more traditional attitude towards warehouses by creating some stocks and limiting the “just in time” model, ie buying only what is needed in the face of scheduled production. Very close collaboration and flexible agreements with suppliers in the supply chain for optimized management of stocks or surpluses.

Second, flexibility and rapid reprogramming ability.

Key4biz. Some concrete examples?

Lorenzo Ciofalo. For example, the ability to identify alternative suppliers and replace some unavailable components or by remodeling the product, adapting its software and production and assembly plants.

Production of Tiesse IoT devices
Production of Tiesse IoT devices

Key4biz. So aspects that until now could be seen as weaknesses are strengths today?

Lorenzo Ciofalo. Exactly. Tiesse internally develops its products with the control of the entire life cycle: from design, to the hardware and software project to production, assembly and testing as well as logistics and possible returns from the field and favors the localization of activities. This allows us to be able to quickly evaluate alternatives and implement reprogramming where necessary. Together with the lean and efficient company size, it has been possible to maintain high and increase production levels.

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