Marcy's Musings: It's Show Time!
One World, One Industry: Mapping the Future of the Electronics Workforce
The Marketing Minute: Trade Shows—The Investment That Keeps on Giving
Building Resilient Supply Chains
July 8, 2024 | Mark Goodwin, Ventec International GroupEstimated reading time: 1 minute
Globalization and offshoring have shaped the supply chains of large manufacturing businesses for the past three to four decades. The main goal has been the relentless pursuit of cost control to minimize expenditure and outlay and thus maximize returns and profitability.
Since the COVID pandemic and the associated disruption to manufacturing, with subsequent turmoil in labour markets and shipping, more companies see the value of resilience in their supply chains. Arguably, we had all become accustomed to everything fitting together neatly with minimal complications, which encouraged setting up increasingly complex and extended supply chains. Until, suddenly, everything stopped.
The drive that powered offshoring is now enthusiastically advocating reshoring to protect against uncertainties and reduce the environmental impact of business activities. However, keeping everything close to home is often not an option. Manufacturing requires appropriate skills, as well as supporting industries, and these, too, have migrated away or simply folded up. I can comment directly on the printed circuit business, where the proportion of boards fabricated in Europe and the U.S. has dwindled to just 2% and 4%, respectively. In the 1980s, there were over 20 suppliers of substrate base materials in Europe. Currently, there are two. Similarly, the number of suppliers of glass and copper foil has fallen from a dozen to just one. Re-establishing local supply chains will take time.
Ensuring the security and integrity of the supply chains we already have is vital. This includes increasing agility to work around external issues such as shipping difficulties and to handle customers’ changing demands.
The key to this is finding out as much as we can about our customers’ manufacturing plans. Of course, some confidential information cannot be shared, so historical data could be used to drive predictive models. Overall, the clearer the knowledge and understanding between supplier and customer, the better each party can plan their activities to fulfill the needs of each.
Companies can greatly improve on-time delivery performance in end-user markets by trusting each other enough to share ERP data that lets suppliers understand exactly where materials need to be at any time. Equipped with even basic information of this type, suppliers can position themselves to ensure the required components are delivered at the time they are needed, minimizing the potential for mistakes, and avoiding expensive emergency deliveries.
To read this entire article, which appeared in the June 2024 issue of PCB007 Magazine, click here.
Share on:
Suggested Items
Revolutionizing Supply Chain: The Cofactr Solution
02/19/2025 | Marcy LaRont, I-Connect007Cofactr was co-founded by Phillip Gulley and Matthew Haber, originally as a small PCB assembly house. Recognizing a greater need, they transformed Cofactr into a supply chain execution platform that automates and optimizes manufacturing processes. The company integrates early design data with supply chain information to identify potential issues, provide risk abatement, and streamline procurement. I met with Phillip at DesignCon and asked him to walk me through the company’s background. He explained how Cofactr helps companies ensure compliance and achieve efficient material management, allowing engineering teams to focus on design rather than logistics.
Electra Polymers Ltd Becomes Primary Inkjet Soldermask Supplier for TLT PCB, an Affiliated Teltonika Company
02/18/2025 | Electra Polymers LtdElectra Polymers Ltd, a global leader in inkjet materials for the PCB industry, is proud to announce a new partnership with high-tech design and manufacturing company TLT PCB, an affiliated company of Teltonika, becoming the primary supplier of inkjet soldermask for TLT PCB’s new manufacturing facility in Vilnius, Lithuania.
Supplier Production Cuts and AI Demand Expected to Drive NAND Flash Price Recovery in 2H25
02/17/2025 | TrendForceTrendForce's latest findings reveal that the NAND Flash market continues to be plagued by oversupply in the first quarter of 2025, leading to sustained price declines and financial strain for suppliers.
Statement from John W. Mitchell, IPC President and CEO, on U.S. Tariffs and Global Trade
02/13/2025 | IPCIPC, an electronics industry association dedicated to furthering the competitive excellence and financial success of more than 3,000 members worldwide, shared the following statement today on U.S. tariffs and their implications on the global electronics industry.
Unveiling the Future: Insights on Next-Gen Megtron Materials
02/13/2025 | Marcy LaRont, I-Connect007In this interview from DesignCon, Jim Kenny, OEM business development manager at Panasonic, touches on next-generation Megtron materials and delves into the industry's growing demand for high-speed, low-loss laminate systems, particularly in light of the anticipated 224 gigabits per second technology. With a focus on material development and production timelines, Jim highlights the challenges and opportunities in meeting customer needs while also maintaining quality and supply chain stability. As Panasonic prepares for the evolving landscape, they remain committed to innovating in this competitive market.