US Electronics Industry Overview
Today, the electronics industry is governed by how the products are placed, bought and reordered. The plenty of features offered by these products are exciting, but they also lead to unpredictable lifecycles. This creates uncertainties in product lifecycles and increases pressure on the supply chain of companies. Demand variability and supply variability coupled with re-ordering ease and lower lead times are few of the factors that influence the consumer demand trends that the US electronics industry needs to respond to. The supply chain is a big business for most companies and there are certain key challenges that companies operating in the US electronics industry must be aware of.
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Supply Chain Challenges Facing the US Electronics Industry
Comparatively short product lifecycles
Short product lifecycles expose the US electronics industry to an atmosphere full of risk. Companies always have to carry extra inventory to meet customer demand due to the changes happening over the course of the lifecycle. This increase carrying costs and risks to the company’s bottom line, if in case the product fails to perform in an expected way. However, companies can create multiple supply chain policies that show reflecting life cycle demand. These patterns allow companies to compare plans based on price curves and customer segments and find the best results.
There are numerous stakeholders involved in the product’s journey from raw materials to delivered finished goods. With so many partners involved, companies are required to collect and organize various sets of data. Strong visibility across the supply chain then becomes a necessity for firms to ensure that you’re not constantly reworking on plans and dealing with communication problems. Lack of visibility into the supply chain can make companies miss discrepancies and result in unprecedented risks.
An end-to-end supply chain network is crucial for companies that can capture all master and transactional data with one system – including details from your partners. This will reduce the time taken to reduce the current data and search for any supply chain issues.
Inability to organize latent data sets can make it difficult for companies in the US electronics industry to identify risks. Give SpendEdge a try by requesting a free demo of our procurement platform and gain exclusive insights regarding the most pressing US electronics industry challenges.
Mergers and Acquisitions
Mergers and acquisitions are important for the expansion of companies in the US electronics industry. The longer a company takes to integrate data from a newly acquired company, the slower it’ll see the payoff. Companies require a variety of enterprise resource planning (ERP) systems that can work well together. The faster the company merges data, planning, and analytics, the sooner it can reap the benefits of investment. The planning solution should be efficient enough to pull data and model the behavior of multiple ERP systems. Once the ERP system pulls data into a standard format, companies can easily manipulate and analyze it to bring down their inventory and cost risks.