The pandemic has upended manufacturing supply chains for businesses across the globe, including Original Equipment Manufacturers (OEM) and Electronic Manufacturing Service (EMS) providers. As countries begin to re-open, companies face the challenge of rethinking their EMS supply chains in a post-COVID world.
The way we treat supply chain management has fundamentally changed. Many strategies that were previously considered either luxuries or bad practices are now regarded as essential. Diversification in manufacturing was once thought a poor practice that over-complicates logistics management- now it's deemed vital to EMS supply chain resilience.
Despite these dramatic shifts, customer desires remain relatively consistent: cheap products and fast delivery. These expectations strain businesses that must elide internal business requirements with external customer expectations.
Businesses can build security in these areas by developing a resilient EMS supply chain. A logistics management strategy that emphasizes resilience means that organizations can maintain a high standard of productivity and customer service when a recession, a war, or another outbreak strikes.
What Is An EMS Supply Chain
An EMS supply chain is a network that exists between suppliers, manufacturers, distributors, and retailers. It is affected by customers' demand and allows businesses to connect to different industries. An EMS supply chain can operate with various degrees of complexity. Companies that use multiple suppliers or manufacturers will have to navigate the resulting complexities of logistics management.
Every point of the supply chain is subject to various pressures. For example, the US-China trade war has led to greater economic nationalism. This pressured manufacturers to increase domestic production, grow employment in their own countries, and reduce dependence on external sources. Leaner production strategies were employed to limit the percentage of inventory held in their global EMS supply chain.
By contrast, the COVID-19 pandemic posed a significant challenge for distributors and those involved in logistics management. The retail and technology sector experienced a boom in customer demand, forcing businesses to re-examine how the logistical elements of their supply chain operated and make dramatic changes to account for vulnerabilities.
Long-Term EMS Supply Chain Trends in A Post-COVID World
Some of these changes are here to stay. Supply chain management in manufacturing and logistics will look markedly different post-COVID-19. The pandemic sped up the looming logistics 4.0 and industry 4.0 technological revolutions, allowing forward-thinking organizations to implement smart solutions across their EMS supply chain. Alongside this, customers have increasingly demanded that businesses operate within ethically sustainable guidelines. The "vote with your dollar" strategy means companies must redirect their focus towards socially and environmentally responsible modes of production if they hope to maintain healthy customer relationships. We explore how businesses can adapt their supply chains to meet the new challenges posed by COVID-19.
1. Increased demand for transparency
The increased customer demand for transparency and new government regulations mean businesses need to thoroughly understand their EMS supply chain and partners' workings. Globally, laws were created to increase transparency across the supply chain. For example, the California Transparency in Supply Chains Act and the U.S. Food Safety Modernization Act indicate a global movement that prioritizes ethics and transparency in all aspects of supply chain management. With these legislations in place, suppliers with poor ethical practices will inevitably be compelled to re-evaluate their model or face hefty fines. Avoid this disruption by opting for transparency in your supply chain and ensuring your EMS suppliers do so too.
2. Role of technology in supply chains
The industry 4.0 and logistics 4.0 technological revolutions mean businesses can now employ modern digital solutions to optimize their supply chain. For companies wanting to get ahead of the curve, embracing technology in the supply chain is a must.
Technologies such as PCI Private Limited's digitized inventories and warehouses improve warehouse efficiency. Businesses can access inventory data in real-time by digitizing end-to-end inventory control to the sourcing materials and the dispatching of finished goods. This leads to improved speed, agility, efficiency, and productivity. PCI Private Limited uses this technology to efficiently manage vast amounts of inventory for the benefit of our clients.
Smart warehousing and other logistics 4.0 innovations can also improve logistics management. Businesses redirecting their resources to areas where digitization was previously thought impractical can now streamline the workforce for maximum productivity.
3. Sustainability and the environment
Ecological sustainability and business security are inextricably linked- there's no business without customers, and today's customers demand green solutions. Using green logistics solutions and maintaining transparency around eco-business practices can improve customer relations.
Long-term sustainability that emphasizes supply chain resilience and diversity is also gaining popularity. Using resources efficiently and reducing waste are examples of sustainable supply chain management. Green logistics are no longer simply "good to have". They are essential for modern businesses looking for long-term sustainability. By taking steps to green our supply chains, we can also help to preserve the environment for future generations.
Supply Chain Management - How PCI Private Limited Can Help
A resilient EMS supply chain is efficient, cost-effective, and sustainable in the long term. PCI Private Limited is dedicated to providing innovative solutions to EMS supply chain challenges. In the past 18 months, our resilience strategies have enabled businesses to operate at standard capacity despite the disruptions caused by COVID-19.
As a high mix, low volume EMS provider, we focus on agility and cost-effectiveness, making us a competitive manufacturing option for global businesses. Our diverse customer base allows us to transfer solutions and processes from one sector to another so that every client can benefit from the best knowledge available. Also, our agile strategy allows for a streamlined customer experience that accommodates EMS supply chain delays without derailing production schedules. We integrate supplier networks and real-time visibility into our warehousing options, allowing customers to make order amendments as needed.
At PCI Private Limited, we have expedited procurement and optimized our EMS supply chain management by implementing digitized and streamlined interactions with suppliers, which replaced manual workloads. Digitization facilitates scaling and dramatically decreases human errors, all of which create a more productive environment.
Our scalable production capacity is enhanced by lean material control and shorter change over time. All these allow us to provide our partners with high-quality products and lower manufacturing costs. If you're interested in learning more about how PCI improves your supply chain management in manufacturing, then get in touch with our team today!