Leveraging Technology To Optimize Supply Chain Efficiency
With the disruption caused by the pandemic, manufacturers’ position in the market weakened even more. Before the pandemic, technology manufacturers were at risk of losing market share and demand due to downtrodden supply chain efficiency disorders. The decline in demand experienced by the automotive industry was followed by a quicker recovery than expected, which put pressure on chip and electronic component manufacturers. As a result, demand for electronics and other technology products has been rising, which has hurt supply. Manufacturers of these products have also faced challenges as production gets delayed due to shortages of critical components, which has its share of consequences.
The effect of transport and travel has dramatically reduced, creating supply shortages and increased prices. Sometimes the products we receive are made depending on our individual needs. We’ve avoided the worst of these effects and may be on the way to full recovery, making supply chain management more crucial than ever.
To be able to survive in the future, companies will need to address the below five major technology-related trends:
Constraints in the global freight market
Few industries were as hard-hit by the pandemic as the airline industry. Passenger numbers plummeted during the worst epidemic, reducing opportunities for airfreight. Airlines have been recovering, but air travel is still limited. The shift to more ocean freight has led to capacity issues in this area and extended delivery times. Technology companies are highly dependent on international shipments, and the supply chain from inbound materials to manufacturing to assembly and testing can take place internationally. This means that a single product might involve several international shipments.
Cascading effect of semiconductor shortages
No issue has been disruptive or received as much attention as the chip shortage. Chip manufacturers are working aggressively to close the gap between supply and demand, but bringing new capacity into production will take years. As a result, this has caused tech suppliers to need help finding enough resources, which has put production schedules and new product introductions at risk. Supply Chain should be a tool manufacturer can use to stay competitive by bringing increased expertise, focus, and resources to their Material Inflow management. Working from a deep understanding of all components of the technology supply chain, we take care of supplier management for you, allowing your team to focus on other aspects that are more important to your business. We have the resources necessary to cover a broader range of suppliers than you may be able to on your own. This solution can also minimize the impact of shortages through inventory optimization and in-plant logistics supporting just-in-time and Kanban replenishment of raw materials and components.
Uncertain Geo-political impact on Trade
Trade relations are becoming unpredictable, making it difficult to determine what technology we’ll use. China and America have been at odds throughout most of the year as they fight to agree on how much cooperation should exist. As a result, what will happen in the future is still being determined, including whether current policies might intensify. Chinese manufacturing businesses need to be able to move quickly and efficiently to deal with changes in the relationship between China and the U.S.
Planning with an LLP Agreement can reduce the harmful effects of trade policy changes by providing a roadmap for how business partners may react and respond to different possibilities. In addition, our supply chain network of global contact towers ensures the visibility and control of international transportation to enable fast response in case of any sudden policy change. Combined with domestic services, we can alleviate the impact that policy changes might have on you.
Manufacturing – Declined Supply chain efficiency
Shortages exposed the U.S.’s dependence on foreign makers for critical electronic components. This includes those vital to your national security. As a result, many private and public initiatives focus on developing new American fabrication sites, including an infrastructure bill introduced in 2021. One of the incentives offered by this bill is government funding for developing factories in the U.S. These changes can reduce the reliance on international freight for U.S. tech companies and make product supply more efficient. In addition, the effort could reduce freight-related uncertainties, lead times, and costs.
Our inbound-to-manufacturing solution, License, and Control Tower solutions let you better manage your supply chain. They offer more agility to respond to new domestic supply sources without disrupting production.
Dynamic customer behavior
Over the past few years, customers have become more dependent on eCommerce and demanding higher service levels. The pandemic has accelerated those changes and forced organizations to invest in scaling up their direct-to-consumer and eCommerce operations. However, it’s not just about increasing the visibility and efficiency of your eCommerce platform; you also have a thing or two to consider in terms of their return operations. A centralized returns management strategy can ensure that your testing, repair, and refurbishment facility has the resources needed to help customers get the most out of their products. This will protect your Brand and provide you with high-quality customer service that is out of this world!