For the electronics industry, supply chain issues are nothing new. They have been around since the advent of the industry. However, as per experts these issues are becoming worse with each passing day. Are you looking for some strategies that will help you overcome the common electronics supply chain challenges? Well, to help you in your search, we have formulated a list of some of the best strategies. You can easily reduce and prevent supply chain difficulties with these practical strategies.
Increase the Number of Vendors You Work With
In light of the COVID-19 pandemic, having all or most suppliers concentrated in a single region was found to be detrimental to the business’s growth. Even if the electronics supply chain is not geographically constrained, a single entity’s failure to supply raw materials might cause significant problems.
According to supply chain executives, the multisourcing strategy is becoming increasingly popular. The goal is to find dependable suppliers and supply chain partners who will supply emergency supplies in the event that your primary sources run out. It can also help you save money because you need to call on the secondary suppliers only in the event of an emergency. If you are looking for one such supply chain partner, check out www.win-source.net
There are, however, certain drawbacks. For example, managing relationships with multiple suppliers rather than just one becomes more challenging. Also, buying in bulk from a single vendor rather than from a number of them sometimes qualifies buyers for volume discounts.
Moving Production Out Of The Affected Area Is The Best Way To Minimize Damage
During the COVID-19 issue, Samsung’s decision-makers temporarily relocated some production units from South Korea to Vietnam. The temporary closure of the South Korean plant was caused because of a worker who tested positive for the virus. This occurred following a string of illnesses among the company’s other workers.
Some of Samsung’s high-end smartphones, including the foldable Galaxy S20 and Z Flip, were impacted by the change. Representatives added that once the COVID-19 situation stabilized, they will return production to the affected South Korean factory.
This option may not be available at every company. Leaders, on the other hand, should act swiftly and carefully consider the benefits and drawbacks of making a temporary relocation.
Enforce Strict Inspection Procedures
Quality control issues can potentially cause problems in the supply chain. Let us take the example of a printed circuit board. It’s used in critical medical equipment or products that protect national security. A PCB can be evaluated in a variety of ways.
The fact that X-rays don’t produce shadows has made it easier to check these components. Other options for validating solder junction dimensions include using an automatic laser test measurement.
Create a comprehensive process to ensure that all parts satisfy quality standards. After the delivery of a cargo, suppliers are charged a fee if the goods don’t fulfill their standards.
Get The Help of An Accurate Forecaster
Nobody can predict the future with any amount of certainty. However, in-depth forecasting makes it possible for the businesses to be better prepared for things coming their way. For instance, people who deal with electronic components can start with remodeling their current supply chain structure and production capacity.
From there, they can begin analyzing the what-if situations that could lead to supply chain disruptions. Which of these scenarios is the most likely to happen? Has a business previously faced such an issue? If this is the case, how did the tactics employed at that time work out?
In addition to that, it’s a good idea to consider scenarios that could have multiple outcomes. Expert forecasters had predicted about 2021 Texas winter storms. In order to lessen the burden on Austin’s electrical system, authorities had requested several semiconductor manufacturers to temporarily restrict their activities.
In addition to anticipating the most likely scenarios, another way is to analyze which situations would be the most costly if a corporation did not prepare for them ahead of time. Explaining the financial repercussions for CEOs might inspire them to take action and provide more resources to resolve current supply chain risks and reduce future concerns.
Cybersecurity Should Be A Top Priority
The electronics supply chain could be a target for cybercriminals who wish to cause widespread destruction. Whie it might look like a farsighted idea, that is actually a possibility. The world’s leading electronics manufacturer, Foxconn, had to deal with a ransomware attack in late November 2020. The company was not prepared for it and thus faced some serious losses.
Workers at a Mexican factory that assembles and ships electronic components across North and South America were affected by the incident. According to reliable sources, data from the corporation was first stolen and then encrypted. The ransom demand from the thieves was $34 million, and they requested payment in cryptocurrencies.
Representatives from Foxconn confirmed the attack and stated that the company was attempting to restore service as soon as possible.They said that it could take weeks to do so, even in the best-case situation. All the customers of Foxconn in the region were affected by the cyberattack.
If you’re a company leader, cybersecurity isn’t usually at the top of your to-do list. This, however, will need to change as attacks are becoming quite common and more serious.
A good place to start is to make sure that all linked systems are appropriately secured, especially when businesses invest in new machinery or software. Employee training is also vital, especially since a virus-infected email attachment or a phishing email might pose a threat.
Obstacles in the supply chain are a problem for any electronics company. A company’s current revenue may not last for long if the company’s hazards remain unaddressed.
An effective supply chain management strategy can help organizations stay on top of their competition and keep their customers happy. There is no one-size-fits-all solution here. However, they’ll get you started on the right foot as you look into the best practices for strengthening your electronic supply chain.