Disruption in the manufacturing process due to the global pandemic of COVID-19 has also taken a toll on the tech industry. Global lockdown has accelerated consumer’s shift to e-commerce, thus leading to rising demand for omnichannel solutions. Responding to this trend, a mature supply network is crucial to overcome the complexity of manufacturing high-tech products.
Understand the Challenges
Supply chain management for the tech industry might be more complicated than other industries. This is because customers keep expecting and demand the latest technology upgrades. Given that the tech industry constantly innovates and produces at faster speeds with each new launch, its supply chain management needs extra attention.
Here are some challenges that tech companies may face in terms of supply chain management:
Tech industry has a rather complicated and layered manufacturing process. For example, digital devices require precise assembly and many interlocking parts. The ecosystem in technology manufacturing consists of different suppliers delivering components such as motherboards, camera lenses and sensors. These parts need to be assembled at a final manufacturer. Problem arises if any part gets delayed; it is possible that the entire manufacturing process will be disrupted. The longer it takes during the supply process, finished goods inventory may get limited in quantity. Therefore, careful coordination, scheduling and communication are central to tech industry supply, as there are many vendors contributing to the final product.
- Keeping up with competitors
Technology is always evolving that even the latest innovation becomes outdated quickly. Companies in this industry relentlessly compete to sell outstanding products with faster speeds and helpful software updates. The inability to keep up with this competition will make tech companies being left behind. The immense pressure to limit the time-to-market begins from the research phase and onto inception, manufacturing, then upgrades. In this case, an efficient supply chain management strategy will accelerate each stage and prevent bottlenecks between steps.
Acknowledging that there is a tight deadline on product launches, tech companies cannot afford having their items stuck on a slow-moving transportation schedule. This issue is typically found in ocean freight. With global manufacturing and factories crossing international borders, transportation can get intricate and costly. Long delays in transportation can result in inventory shortages at retailers level. Therefore, supply chain managers are forced to prioritize speed by relying on a vast network of multimodal carriers. An advanced and innovative approach to logistics is also essential to account for custom delays for efficient border crossings.
With new risks and roadblocks challenging the sustainability of tech companies, renewed focus on the supply chain is worth prioritizing. Without the right approach in improving their supply chain and logistics management strategy, tech companies may find it hard to compete in the market that is rapidly and continuously developing. Therefore, resiliency and agility are essential in the modern high-tech supply chain. Improving supply chain and logistic management can be a competitive advantage in keeping up with the ever changing industry of technology.
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