Going into 2020, the electronics industry was already dealing with a trade war and ongoing shortages in various component categories. The onset of the COVID-19 pandemic only served to further impact already strained supply chains.
While still a major part of daily life, the industry has begun to see some recovery. Despite this, there’s still an elephant in the room that needs to be addressed: what can we learn from these challenges, and how do we build resiliency into global supply chains for current and future challenges? It starts with a new approach to sourcing.
Revealing Weaknesses in Global Electronics Supply Chains
Earlier in 2020, a survey conducted by Supplyframe and Dimensional Research revealed some eye-opening statistics about the state of sourcing in the midst of a global pandemic.
Beyond these findings, other sectors of electronics manufacturing also found themselves facing unexpected challenges related to sudden demand and a lack of supply.
Alongside the lockdowns came a shift towards remote work. Out of nowhere, the demand for things like webcams and laptops skyrocketed. Manufacturers scrambled to keep up. Companies like Logitech shifted to air freight shipping instead of sea, but even with this change a spokesperson said “we are still chasing demand.”
Elsewhere, prices began to go up as well. In a creative turn of events, Nikon even released an update for their DSLR cameras that turned them into makeshift webcams.
Innovation is indeed a powerful tool in situations like this, but ultimately these shortages, price inflation, and months of items being out of stock all revealed a deeper issue: the way we source components is no longer viable.
Strategic Sourcing: Where Do We Go from Here?
Supply chains are inherently tied into every aspect of the countries where production, manufacturing, and shipping occur. Everything from political tension to natural disasters, and as we’ve seen, pandemics, can have an effect on supply and demand in equal measure.
The electronics manufacturing industry has succeeded in building vast and complex supply chains, but have yet to build resilient ones. Supplyframe answers this call by bringing crucial data and part intelligence to the table that bridges the gap between supply and demand in every season.
Here are three ways every aspect of electronics manufacturing can benefit from this type of solution:
- By leveraging design, intent, demand, supply, and risk signals across billions of continuous sources, connected and strategic sourcing becomes possible with the added benefits of unparalleled intelligence and insight
- The ability for manufacturers to collaborate across silos and work with suppliers to enhance margins provides both resiliency and agility to the entire product lifecycle.
- Suppliers working in new product introduction benefit from the ability to identify and convert demand signals from over 10 million engineers and sourcing professionals in the Supplyframe network
Supplyframe solutions bridge the gap between supply and demand by offering truly connected and strategic sourcing to supply chains affected by ongoing political, social, and health related challenges.
This is the resiliency that the industry is looking for, and it’s the key to not only recovering, but also thriving as we move forward. Contact us to learn more.