$3M ERP Delay Teaches Supply Chain Lessons as VPG Orders Hit $96M

For supply chain leaders, Vishay Precision Group’s second quarter is a textbook example of digital transformation risk coexisting with booming demand: a $3 million shipment delay caused by the introduction of a new ERP system at its steel-related operations marred an otherwise stellar order quarter of $96 million, driven by record precision resistor bookings for AI and a vendor nomination for humanoid robots. The incident highlights how even a temporary execution gap can ripple through revenue and customer commitments, making robust change management and contingency planning essential.

Vishay Precision Group’s fiscal 2026 second quarter results, announced on August 5, 2026, paint a picture of a company at the intersection of explosive demand and complex operational hurdles. Bookings of $95.5 million—translating to a book-to-bill ratio of 1.14—marked the highest quarterly orders ever for its precision resistors serving AI-focused semiconductor, data center, aerospace and defense applications. This demand surge, coupled with a landmark vendor nomination for a humanoid robotics supply chain, signals that VPG is carving out a critical role in multiple high-growth technology ecosystems. Yet beneath the topline momentum, the quarter also revealed the fragility of manufacturing execution: $3 million in revenue slipped into backlog due to supply chain disruptions caused by the implementation of a new ERP system at its steel-related systems business.

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First, unfavorable foreign exchange movements created a $3.3 million drag on profits year-over-year, with an additional $0.9 million sequential hit—a reminder of the currency risks inherent in global precision manufacturing.

The precision resistor segment—core to VPG’s growth narrative—is benefiting from the insatiable requirments of next-generation AI chips and hyperscale data centers, where ultra-accurate current sensing is essential for power management and thermal control. With global capital expenditures on AI data centers expected to exceed $200 billion annually by 2026, VPG’s order book appears insulated from broader economic uncertainties. Meanwhile, the company’s new humanoid robotics nomination, though still pre-revenue, positions it as a supplier to what could become a multi-billion-unit market later this decade. CEO Ziv Shoshani confirmed that production ramps are expected in the second half of 2026, adding a futuristic growth avenue to an already compelling portfolio.

However, the quarter’s bottom line was weighed down by two significant headwinds. First, unfavorable foreign exchange movements created a $3.3 million drag on profits year-over-year, with an additional $0.9 million sequential hit—a reminder of the currency risks inherent in global precision manufacturing. Second, and perhaps more operationally telling, the ERP-related shipment delays at the steel systems facility highlight the precarious nature of digital transformation in industrial settings. While the company states that production is ramping and all delayed orders will ship by year-end, the incident underscores how even a temporary execution gap can erode quarterly results in a just-in-time supply chain environment.