7 Foundational Areas of Supply Chain Management for Electronic Manufacturing

As manufacturing companies face the era of intensive global competition, they are now more than ever exploring innovative strategies to stand out in the crowd. Supply Chain Management (SCM) is one of the explored strategies. Properly designed supply chain systems can improve product quality, enhance customer satisfaction, and boost efficiency.

Understanding Supply Chain Management

Commercial innovations in services and processes were traditionally acquired by vertically integrated companies. The global competitive industry later shifted towards a virtually integrated structure which encouraged interaction between clients, suppliers, and manufacturers.

Supply chain management is a network of corporations that are interconnected in either product manufacturing or service delivery. Supply chain serves the manufacturing and the distribution logistics chains. The manufacturing logistics chain focuses on the processes of the business linked to production, while the distribution logistics chain deals with the involved operations and after-sales, including the repair and maintenance of the products.

Due to the global economies of globalization, more attention is now being given to the supply chain. Manufacturing can be described as the activity that gives value to a material. Because each step adds value to the process, what are the key foundational areas of supply chain management for electronic manufacturing? Let’s find out.



1. Supply Chain

The supply chain is an integrated system that enables the members of different organizations to collaborate and address the concerns of information and material flow. The integration model is designed to give an analysis of multi-product complexities, address planning strategies of how to solve multi-period problems, and capture the technology used. The integration model also incorporates production, distribution, and sourcing decisions.

Here, information flows upstream while materials flow downstream. It means that information moves from the customers to the suppliers, logistics, and manufacturers. The supply chain comes in to streamline the communication and cause it to flow simultaneously. It means that activities in the electronic manufacturing process achieve coordination downstream and upstream.

2. Transportation

The progress of transportation techniques defines the efficiency of services. Well devised management principles can enhance the delivery speed operation costs, moving load, energy-saving, and the quality of the service. As a result of globalization and nationalism in the past decades, the management of logistics has since become critical to on-time delivery.

Logistics enable you to optimize your existing production and distribution while promoting the competitiveness and efficiency of a company. The most significant element is the transportation system.  A robust system consists of clear logistics and proper transport implementation for seamless supply chain operations.  From manufacturing to the delivery of products, transport is required in the whole production process.

3. Warehousing

Warehousing is a critical aspect of the supply chain process. Today, there are evident changes in environmental sustainability, technology, and supply chain, all of which are affecting warehousing to some extent. Also known as distribution centers, warehouses do not add much value to the supply chain for products purchased in bulk.

They tend to be more efficient for other products. Efficiency is introduced when products designed for shipment are consolidated, thereby cutting transportation costs and completing other value-added tasks. These value-added tasks include labeling, packaging, and branding, among others. The type of products determines the specific role of warehousing in the supply chain.

4. Sourcing and Procurement

The massive industrial competition and the fluctuation of raw materials have heightened the need to manage suppliers better. More emphasis is being placed on managing the suppliers who offer the materials needed to satisfy the expectations of customers.

Sourcing and procurement teams are fully involved in balancing the internal and external demands of the customers while also taking into account the role of technological change and supply distribution.

5. Returns Management

Returns management is the process by which activities linked to returns, gatekeeping, and reverse logistics are managed within the organization. A proper implementation allows the administration to handle the reverse flow of product efficiency and reduce unwanted returns.

Understand that failing to take account of the reverse flow could lead to missed opportunities. Effective management of returns may positively impact the performance of your finances and help you to build stronger relationships with customers.

6. Post Sales Service

Post-sale services have strategic relevance to a firm, with their potential ability to boost profitability, product development, and customer retention. Consumers buy products when they need to solve a specific problem.

Unfortunately, most managers to do not realize that the electronic manufactured products that are purchased are meant to service end-users (customers). SCM is primarily about managing flows. Post-sales service engages the supply chain managers in finance, IT, relationship management, forecasting, and operational processes.

7. Partnerships and Collaboration

The driving force in supply chain management is partnership and collaboration. Although these have not been fully leveraged, companies need to realize that supply chain partners are looking to collaborate for mutual benefits.

Collaboration and partnerships can make the difference between short-run dissolution and long-term profitability and sustainability. The benefits experienced go beyond effectiveness and efficiency to enabling companies to grow markets, heighten their market share, and meet customer demands.

These 7 foundational areas of supply chain management for electronic manufacturing should help your company to handle the realities of the next big opportunity and meet the needs of your customers. Your goal should be increased efficiency, maintain quality, and retain customer loyalty.