The electronics sector produces electronic equipment for industries and consumer electronics products, such as computers, televisions and circuit boards. Electronics sector industries include telecommunications, equipment, electronic components, industrial electronics and consumer electronics.
Electrical manufacturing includes manufacturing of generators, boilers, turbines, electrical transformers, electrical cables & wires, switchgears, capacitors, instrumentation & control equipment.
The electronics industry can be broken down into three main categories: semiconductors, Electronics Manufacturing Services (EMS), and Original Equipment Manufacturers (OEM). To simplify things, out of these industry sub verticals, we’ll focus on the challenges faced small to mid-sized contract manufacturers:
SHRINKING OPERATING MARGINS – Global competition and new innovations are driving prices down. Companies must continually become more cost-efficient to remain profitable.
COMPLEX GLOBAL SUPPLY-CHAIN – More and more, companies are having to juggle internal and external resources while staying within international standards. Issues such as traceability and compliance are increasing operational burdens.
SERVICE AND WARRANTY MANAGEMENT – Leveraging the global supply-chain is putting more focus on supplier quality management. Having a strong quality and traceability system directly affects warranty reserve and post-production service hours.
SHORT PRODUCT LIFECYCLES – With quickly changing consumer tastes and preferences, EMS companies and contract manufacturers need to have effective New Product Introduction (NPI) processes in place. Closed-loop communication between sales, manufacturing, and engineering is vital to ensure product launches hit time, volume, and quality targets.
Although these challenges may seem intimidating, companies have been dealing with them at some level for a very long time. SAP Business One integrating aspects of the value chain with core modules like CRM, Finance & Accounts, Inventory Management, Sales, Purchase, Banking which specifically address the challenges of these project-based businesses. can help to battle these challenges and streamline business.