The electronics industry is advancing with immense speed with newer technologies and tools being invented. And, in order to survive in the industry, it is vital that one is flexible and promptly adapts to every change. This has made it difficult for Electronic Manufacturing Services companies to have a strong foothold in the market as they face innumerous challenges. And, only those who overcome these challenges are considered as winners. Those are the ones who top the list of being expert and reliable. One such provider of the best-in-class Electronics Manufacturing Services from India is Miracle Electronics, who can offer everything from product designing and system architecture to value engineering, manufacturing, and logistics.
This blog states the 5 biggest problems that Electronics Manufacturing Service providers face, and how they can resolve them.
- Short product lifecycles – Not only are changes being made in technologies, but customer tastes and preferences are also ever changing. This is why Electronic Manufacturing Service providers need to have positive New Product Introduction procedures in place. It is important to have closed-loop conversations between manufacturing, engineering, and sales, in order to have on-time product launches and spot-on targets.
- Uncertainty in demand – Just as much as customer tastes change, there is also uncertainty in demand. Customer choices spike or curb the demand for products. In addition, economic volatility and cyclical demand also cause fluctuations in production. Thus, it is always important to have efficient lean capabilities in place to maintain inventory aligned with demand.
- Decreasing operating margins – There is so much competition in the Electronics Manufacturing Service industry across the globe, which is riding the fees down. Moreover, the new improvements are only causing loss of business for so many those who cannot cope up. Even those who are able to cope up have to always keep their prices low to continue to stay in the market and earn business.
- Service and warranty management – Everyone wants quality today. People are understanding and focusing more on quality products and services. Thus, there is more focus on supplier quality management. Having a strong quality and taking up guarantee for the quality of one’s products and services is a must; and every organization must abide by that.
- Sustainability – Organizations are required to account for Corporate Social Responsibility in decisions due to the emerging regulations and requirements. For example, E-waste is driving conversations about the disposal of merchandise, and their effect on the environment. Thus, organizations now are required to reflect on the whole product lifecycle while taking decisions.
The solutions to the above problems are mentioned in the challenges itself. Let’s take a look.
- New Product Introduction procedures must always be in line, with on-time product launches and accurate targets in terms of time, volume, and quality.
- To keep up with the increasing uncertainty in demand, efficient lean capabilities are required to maintain inventory as per the demand.
- The prices must always be kept as low as possible, with the least possible profit, to stay in the market and gain customers.
- Quality products and services are a must so that appropriate guarantee and warranty can be given to the customers.
- The entire lifecycle of a product needs to be considered before making any decisions.
Along with all of this, integrating components of the value chain with technological know-how can also help fight these challenges, and bring businesses towards operational excellence.