Reading time ( words)
Component supplies, prices, and lead times are in a great deal of turmoil. And there are a LOT of moving parts to this set of circumstances, ranging from a sustained increase in demand for parts, to pricing pressures on manufacturers and premature parts obsolescence. All of these factors wreak havoc on electronics manufacturing.
In this month's issue of SMT007 Magazine, we explore the drivers and the coping mechanisms from all points of the supply chain.
Read the January 2019 issue of SMT007 Magazine, now on the virtual newsstand, and available for delivery in your e-mailbox by subscribing here.
Be sure to download the PDF version for future reference.
I-Connect007 Editorial Team
Managing the supply chain for electronics manufacturing has always been challenging. About 70-80% of the cost of building an electronic product is for the parts, while the remaining cost is in the process to assemble and test the product. However, during the worldwide pandemic, the strain on the overall supply chain for any product has been stretched to the breaking point. When supply of toilet paper, hand towels, and sanitizer is disrupted and cannot be found on the grocery store shelves, one could imagine the challenges in a similarly disrupted supply chain of efficiently acquiring complex electronic components.
Chintan Sutaria, CalcuQuote
Excess inventory is a ubiquitous issue in the electronics manufacturing services (EMS) industry, and it is made worse by the complexity and volatility of the modern supply chain. Considered an unavoidable cost of doing business, unchecked inventory cost has wreaked havoc on manufacturers without strict controls in place to keep their businesses safe. Excess inventory is not only costly for manufacturers themselves, but also for their end customers. Unwillingly, manufacturers are sometimes forced to eat this cost to avoid disrupting relationships with their customers and with the hope of making up the losses in next year’s orders from the customer.
Michael Ford, Aegis Software Corp.
Inventory management should be simple; after all, it is how many of us learned to count. ERP solutions have become complex yet cannot solve our immediate supply-chain and manufacturing challenges unaided. It’s time to unfold the root-causes behind key issues and reveal the secrets for success in modern inventory management which have a significant impact on any manufacturing business.