Why the Electronic Manufacturing Supply Chain is So Complex

Article Reposted from EPSNews.com

The complexity of global supply chains depends largely on what and how much you’re sourcing.  With some materials — like paper — you’ll find a suitable supplier almost anywhere in the world.

However, in the electronics industry, things are not so straightforward.  Multiple commodities from multiple suppliers across various geographic locations mean global electronics supply chains are much trickier to manage.

One of the main challenges of electronics is the sheer volume of parts that go into one product.  Some of these parts also need to have approvals, and suppliers will require certain certifications.  Bespoke parts are often manufactured to specific designs, too — meaning rigorous testing and sampling are necessary to ensure they meet meticulous quality standards.

Why is a stable supply chain so important?

A good supply chain is all about remaining competitive.  If a customer comes to you wanting a specific part for a project, you need to know that you can deliver through a trusted chain of suppliers.  As such, having a range of approved global suppliers is key to ensuring you never have to reject new enquiries.

A strong network of suppliers also allows you to free up capacity and manufacture a range of products more cost-effectively (and at short notice) — which, ultimately, translates to a better price for the customer.  This is why so many companies in the electronics sector will have at least some offshore suppliers.

However, supplier selection is crucial. It’s not enough to have a good website or a good booth at an exhibition — you need to see the factory and the quality of the parts they produce first-hand.  When customers place orders, you need to know exactly where their products are coming from.

It’s also important not to cast the net too wide.  Once suppliers are spread out too far, the chain becomes more difficult to manage, and you lose control of where the materials come from.  Instead, it’s crucial to build long-term partnerships with suppliers that share and uphold your ethos, integrating them into your business to ensure a fluid process.

What is the impact of external factors?

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