The five processes in operations essential to survive in any electronic manufacturing business

The growth and subsequent shortages in the electronic market for anyone buying, manufacturing or selling electronics have been unprecedented in the last ten years.

Smartphone sales in units have increased from 170m units in 2009 to 1.6 billion units in 2018. Automotive electronic content is accelerating with safety, driver aid systems and electric vehicles. Med tech and industrial are rapidly following a route of electronification and digitisation.

The rise in demand for electronic components is set to continue and is part of a much longer cycle of perhaps 20 years as the fundamental drivers continue to drive new applications/devices and increased electronic content. There is a small reduction in the growth this year from Smartphones, but this is offset by other sectors. So no time for complacency.

Electronic demands 2010 - 2020 in 3 key sectors

For the companies and operations leaders to continue to survive and thrive in this market requires a high level of skills, expertise and resources in 5 critical areas : –

  • Alignment with the leadership team on requirements
  • Robust supplier relationship management throughout the Supply Chain SC
  • Accurate forecasting and a (SIOP) Sales Inventory Operations Planning process that is fit for purpose.
  • Integrated Design, Engineering and Supply chain processes and collaboration provide flexibility in the SC
  • A pragmatic and continuous approach to Risk Management

Weaknesses in any of these five areas will at best slow down, and at worst reverse value creation in your business as stockouts, obsolescence and upset customers damage your business.

In the businesses, I have led or consulted in during this period; there has been a continuous investment and upgrading of the skills around these critical activities. I believed this must continue as the need to have accuracy and agility in the SC, especially in this area is essential. 

#electronics # manufacturing #SIOP #operations #planning #forecasting #consulting #shortages #supplychain

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