The advancement in electronics industry is often startling and there has been a major paradigm shift over the past few decades. The manufacturing division of electronic components has direct impact on the electronic component distributors in the market.
The electronic companies have to be on their toes at all time and change swiftly with time to meet the emerging challenges in the market. Let us have a look on some challenges being faced by the electronics industry and distributors alike:
Reduced Operating Margins
Constant innovations and global competition have driven the prices down. In such a scenario, the companies need to be cost-efficient in all perspective to maintain their profits.
Complicated Supply Chains Globally
Almost every company has to play their cards well and stay well as per international standards while properly allocating both internal and external resources. Multiple issues like compliance and traceability are putting additional operational burdens on the companies. Sometimes the components and additional subcomponents travel across three continents or more before reaching their final destination and then the final user.
Managing Warranty and Service
In order to leverage the supply chain across the globe, a lot more focus is laid on managing the quality. Superior quality and traceable systems improve the warranty reserve and service hours in the post production department.
Diminishing Product Life cycles
Consumer preferences can change instantly and as a result all EMS companies and other contract based manufacturers must be equipped with a New Product Introduction (NPI) process. Effective communication between manufacturing, sales and R&D are integral for timely products launches with the right volume and targets.
Uncertainty In Demand
Volatile economics and cyclic demands can create a lot of fluctuation in production. It is important to have lean capabilities and keep a demand aligned inventory.
The increasing standards and regulations are driving companies to account more for CSR- Corporate Social Responsibility. Since E-Waste is one of the hot topics these days and a lot of stress is being laid saving the environment, the companies must think of complete lifecycle of products while making decisions.
The electronic companies have to be on their toes at all time and change swiftly with time to meet the emerging challenges in the market. Let us have a look on some challenges being faced by the electronics industry and distributors alike:
Reduced Operating Margins
Constant innovations and global competition have driven the prices down. In such a scenario, the companies need to be cost-efficient in all perspective to maintain their profits.
Complicated Supply Chains Globally
Almost every company has to play their cards well and stay well as per international standards while properly allocating both internal and external resources. Multiple issues like compliance and traceability are putting additional operational burdens on the companies. Sometimes the components and additional subcomponents travel across three continents or more before reaching their final destination and then the final user.
Managing Warranty and Service
In order to leverage the supply chain across the globe, a lot more focus is laid on managing the quality. Superior quality and traceable systems improve the warranty reserve and service hours in the post production department.
Diminishing Product Life cycles
Consumer preferences can change instantly and as a result all EMS companies and other contract based manufacturers must be equipped with a New Product Introduction (NPI) process. Effective communication between manufacturing, sales and R&D are integral for timely products launches with the right volume and targets.
Uncertainty In Demand
Volatile economics and cyclic demands can create a lot of fluctuation in production. It is important to have lean capabilities and keep a demand aligned inventory.
The increasing standards and regulations are driving companies to account more for CSR- Corporate Social Responsibility. Since E-Waste is one of the hot topics these days and a lot of stress is being laid saving the environment, the companies must think of complete lifecycle of products while making decisions.
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