Electronics and High tech
The Electronics and High Tech industry is facing unprecedented challenges in today's ever-evolving market. With increased complexity in global supply chains, fierce competition, and the need for new product introductions, it is more important than ever before to review your global manufacturing and distribution operations and supply chain. This will be a key driver for your company’s success.
Here are six key trends to consider from an end-to-end supply chain, operations, and footprint perspective:
1. Complexity in Global Supply Chains
The global supply chain is becoming increasingly complex, and it is essential to have complete visibility and analytical capabilities to make strategic and tactical decisions within a very short time frame (days instead of weeks).
2. Footprint Strategy
A comprehensive manufacturing footprint strategy is necessary to de-risk and balance sourcing and manufacturing in China versus other geographies, to adapt to new products in the portfolio, as well as for sustainability and circularity purposes.
3. The Need for Supply Chain Visibility
Having real-time visibility across all tiers of the supply chain is critical for success. This helps to mitigate risks and identify opportunities.
4. New Product Introductions (NPI)
The rate of new product introductions is increasing with a rapid decline of product value over time (freshness), making it crucial to have a robust product lifecycle management system and ways to supply the markets with NPI flows.
5. Competition in the Market Place
Competition is intense, and it is crucial to streamline operations to offset higher costs and improve profitability.
6. Simplifying the Business Model
Streamlining operations is essential for reducing complexity and cost while improving speed and flexibility. This includes right-sizing the go-to market strategy for geographical markets
As you consider these key trends, it is clear that reviewing your manufacturing and distribution footprint is a critical step for success. A comprehensive footprint strategy must consider the advantages and disadvantages of decentralization of sourcing and manufacturing in different regions to balance costs and risks. This also supports sustainability and social responsibility. Finally, a key driver for high tech companies to review their manufacturing footprints is also the pressure on talent availability (quantity and quality) in many locations around the globe.
In summary, the Electronics and High Tech industry is experiencing significant change, and it is essential to adapt to stay ahead of the curve. Reviewing your global manufacturing and distribution operations and supply chain is critical for success. A comprehensive footprint strategy that takes into account sourcing, manufacturing, and sustainability will be a key lever for success in the future. Let's work together to streamline operations, simplify the business model, and achieve sustainable growth.
