Fraught with a range of difficulties the 2022 outlook for the electronics industries is of great interest to many manufacturing and distribution sectors. Ongoing difficulties with the supply of electronic components continue in line with the looming hangover of the pandemic. With the world reliant on and increasingly dependent on reliable component supplies, could mean that those who are set up and prepared to serve hostile markets are better placed for long-term results and effectiveness. And it’s in the setup and preparation that ERP solutions are key. Read on to learn how Enterprise Resource Planning can help you forward plan and better observe shifting market situations.
What is anticipated in 2022
The electronics industry is anticipating to finally see a light at the end of the tunnel in 2022. With shortage forecasts projecting movements that suggest that supply and demand will begin to realign in the second half of the year. History shows that the issues have been bubbling away in the background for some years, but the culmination of the COVID-19 pandemic and Brexit has forced us to shine a light on the market difficulties and in some ways have also exacerbated the issues further.
Reports also suggest that the journey to the other side will not be an easy one – with price fluctuations, lead times, availability and political struggles all featuring their parts before we see mechanisms that will take us confidently forward and able to cope beyond these issues in the years to come.
What is the IoT’s role?
The IoT, or the Internet of Things, is a trend that is increasingly being adopted by the manufacturing industries. Combining highly skilled engineering works with technology that makes the innovations being developed, access far higher levels of sophisticated processing than those that have ever been achieved before. Digitalised systems, workflows, simulations and automations sit at the heart of the technological advancements and ensuring integration to both the workplace and home environments is becoming even more critical than ever before.
Controlling the data
Intelligent data, or simply knowing what data to track, and avoiding falling into tracking data for the sake of tracking is fundamental to smart control over your business data.
For example, tracking activities such as the ‘total number of overdue tasks’ could be problematic at a macro level. A micro approach as to the reasons why they’re overdue may be significantly beneficial to understanding what causes masses of overdue tasks, so that steps can be taken to allow enough time, set escalation procedures or consider and develop new ways of dealing with unknown variables once identified.
From an electronics supply perspective, the ordering of a component may be sitting overdue for a long time due to availability or the business may still be weighing up how the rising cost will impact the cost of the product you are manufacturing. With questions such as ‘can we get the same component from another supplier’ or ‘should we absorb the cost until further notice?’ to ‘should we increase our prices and pass the costs on to our customers?’ and thus the understanding of why those purchase orders have not been actioned can be put into better perspective.
End-to-end systems configured to monitor these scenarios and trigger alerts could be central to clearer understanding of how the current electronic industry climate is impacting your operations.
Lead times for example can be set up in your manufacturing resources planning module to flag up if suppliers cannot deliver in time. Assessment of historical demand could enable you to place larger orders or agree regular deliveries of key components to help you meet your projected demand.
Assessing the impacts of your supply chain
Taking the time to consolidate who you purchase electronic components from, where they are based or manufacture them, the materials they are made from and the wider environmental impacts of getting them to your facilities and processing them allows you to reassess how you do things right now.
A barrier might be that you simply don’t have all the data or information in one central place, or it could be sat in manual files long forgotten in your office locations.
If you’re an environmentally conscious organisation or looking for ways to reduce your direct and indirect impacts then assessing the logistics supply chain is one of the first areas many people review. Questions that may arise could be ‘do we have the expertise to in-house the production of those components?’ or ‘can we source them more locally?’
There are no right or wrong answers, but there are lots of ways you can try to buffer the knock-on effects you sustain as a result of the electronics industry’s ongoing challenges.
Explore WinMan ERP
For a no obligation discussion about how WinMan ERP can help you to review, assess and plan refreshed business processes, coupled with your step into the digital world via an effective ERP software solution get in touch here with the team today.
Read how Lander Automotive benefit from our all-in-one ERP and continue to achieve high levels of quality and efficiency throughout their processes here