Benefits and Importance of Supply Chains in the Electronics Industry

Why Your Supply Chain is Important in the Electronics Industry

High-tech logistics may create a number of challenges for your business due to the unique and increasing demands from both customers and suppliers alike. However, by using a dedicated electronics supply chain, you could become more connected to both your suppliers and your customers. In this post, we take a look at why your supply chain is important in the electronics industry and the benefits of supply chain management.  

What Makes a Good Electronics Supply Chain?

The practices of supply chain management are still evolving in the electronics industry and while there may not be any universal rules on how to create the best supply chain, many good examples in the electronics industry have demonstrated characteristics like:


1) Good Leadership

Good leaders understand that the supply chain is a complex system and an enlightened leadership team could focus on the management of the supply chain entirely, providing more focus on its impact and efficiency.


2) Thorough Design

A study by Forbes revealed that only 22% of companies designed their supply chains. Unsurprisingly, these were among the most successful of the ones they studied. According to Forbes, the best supply chains focus on the ‘flow’ of the chain. This includes “form and function of inventory, stocking locations, interplant shipments, the alignment of suppliers, and the design of the channel”. Of the Forbes study, 10 of the 15 leaders had an active supply chain design.


3) Measurable Metrics

To ensure a supply chain is measured effectively, it’s best to use a number of metrics, including: operating margin, inventory turns, return on investment capitals, customer service, revenue and forecast accuracy. By focusing on these metrics, you could provide a focus on reliability and higher balance sheet performance.


4) An Understanding of the Importance of Lifecycle Needs

The lifecycle of the product, as well as the time that it takes to get to your customers (or the wider market) from your business, could make a big difference to the success of your business. Shortening the time to market could give you an edge over your competitors.

If your business chooses to use a dedicated high-tech system, you could improve the logistics and transport solutions offered by your business. This is because, if it’s the right solution for you, it could help you easily respond to fluctuating customer demand, as well as helping you roll out new products.


How Could a Dedicated High-Tech Supply Chain Help?

A high-tech supply chain could provide your business with a number of advantages. For example, if you used ours, it could:


  • Reduce inventory pipeline costs by between 2 and 4%, leading to faster and more reliable deliveries.
  • Reduce the likelihood of line stoppage by up to 60%, as you decrease the number of issues arising from transportation.
  • Increase planning productivity by 3-6%, as you improve plant receiving and functioning, as well as improving materials management functions.
  • Reduce administration costs by up to 50%, when dealing with multiple carriers for emergency deliveries.


Here we’ve explored the benefits of supply chain management in the electronics industry and if you take this advice on board, you could improve your electronics company in the long run.