The COVID-19 crisis has created great challenges and hardships in addition to opportunities. The difficulties have included a massive disruption of economies around the world, political turmoil, and most tragic, the deaths of thousands around the world. The economic opportunities are in developing solutions for supply chain. This also involves challenges and solutions related to electronic contract manufacturing.
Contract Electronics Manufacturing Trends
Part of the economic disruption associated with the COVID-19 pandemic is the increasing request from customers to reduce their stockholding. Large volumes of product in stock can jam up a large amount of capital. Generally, customers seeking to reduce their stockholding attempt to push the issues onto a lower rung in the supply chain, causing someone else to pay instead. Stock holding issues also cross paths with the need to have smaller or partially customized volumes of electronic assemblies and parts.
As a trusted electronic contract manufacturer, we operate right in the midst of the product supply chain. This helps us to understand the challenges encountered by our suppliers and customers. We understand that many OEMs we serve face similar obstacles from their customers. We also recognize that part suppliers must be able to anticipate the level of demand over the long term and have the capability to plan future product investments and obtain materials efficiently.
Solutions are Possible
The challenges related to electronic contract manufacturing and the COVID-19 pandemic are not unsolvable. Proper communication, planning, and a transparent process can ensure the development of effective solutions.
Solutions include collaborating with suppliers and customers to develop models that are commercially doable, allowing the minimization of stockholding throughout the supply chain for all parties. This can be accomplished without damaging the overall robustness of the supply chain in meeting customer demand. In this process, it is important to recognize possible constrictions along the supply chain and adjust quickly to changes in customer demands.
COVID-19 and the reaction to it has disrupted much for families and for the economy. At the same it is having forced the development of solutions involving the way people work and how business is conducted that may prove beneficial for the long-term.