Estimated reading time: 4 minutes

Lean Digital Thread: (Pro)curing the Supply Chain Virus

Turn on the news and you’re likely to see images of something that was never considered newsworthy in the past—shipping containers. In fact, the entire supply chain has suddenly become big news due to the ongoing, severe global backlog that is preventing consumers from getting the goods they need on a timely basis. It’s a true global crisis. 

Since the supply chain crisis coincided with, and was hugely exacerbated by, the COVID-19 pandemic, many expect that it will be resolved when the pandemic recedes. However, that is not necessarily the case. Some major changes, such as increased demand (especially for electronics) and labor shortages, are likely to continue for many years into the future, becoming the new post-pandemic normal. 

To survive and thrive in this challenging environment, everyone involved in electronics manufacturing needs better tools to manage their supply chain and build supply change resilience. 

Pay Early Attention to Procurement
Although procurement and inventory don’t provide the memorable images that port congestion offers, they are key components in the current supply chain crisis. To achieve supply chain resilience, both must be addressed. 

But supply chain strategy is often siloed; and that means issues like procurement are typically seen as the sole responsibility of manufacturing and operations. To achieve true supply chain resilience in today’s complex reality, smart procurement and inventory planning needs to move upstream, starting from PCB layout design and proceeding to the engineering phase of PCB production.

Procurement-focused DFM
PCB designers generally don’t focus on procurement. That’s partly because, in the past, they had no way of knowing whether a given component could be procured—the data wasn’t accessible in real time. They would simply create the designs, and if manufacturers were unable to procure a certain component, the design was returned in a time-consuming and cumbersome process of respins that slowed down the supply chain. 

Thankfully, we’re now a long way from there. Today, advanced, cloud-based DFM tools integrate with smart component sourcing databases and connect to component vendor web portals. This enables designers to easily access real-time pricing and availability data. Using those platforms, designers can create designs based on actual component availability and update existing designs based on procurement and inventory data. These tools significantly improve visibility and enable designers to make better decisions regarding components during the design layout. This eliminates the time-consuming back and forth and streamlines the entire process.

Flexible Designs Enable Flexible Engineering
Integrating procurement data into the design process isn’t always enough. The supply chain situation is extremely dynamic and procurement data can change by the minute. In addition, new designs are being created at an ever-increasing pace, and each new design needs to relate to the changing procurement options. Therefore, procurement flexibility is key to supply chain resilience. 

One of the best ways to achieve procurement flexibility is by creating portable product files, vendor-agnostic designs, and even neutral machine shapes. When designs are portable and agnostic, parts can be procured from different vendors and data can immediately be imported by the target site process NPI team to generate new programs and documentation for the new manufacturing environment. Managing part data in a neutral manner allows manufacturers to easily move between vendors according to availability, location, and need, preventing costly delays. Having the flexibility to manufacture close to the point of sale further reduces the shipping costs in addition to the uncertainties of long-distance shipping. 

Predicting Material Needs
When a component or part runs out unexpectedly and can’t be procured immediately, it leads to costly bottlenecks on the shop floor that should be prevented at all costs. To prevent material shortages, manufacturers need a way to predict shortages before they happen so they can procure the necessary materials in advance. 

Advanced material management systems that connect to shop floor machines do precisely that. Using real-time data from the pick-and-place machines and advanced algorithms, they can accurately predict what materials and components will be needed. They can also identify where to procure the parts as needed. Using this kind of advanced material management, manufacturers can prevent costly bottlenecks and delays. 

Building the Supply Chain of the Future with Smart Procurement
At some point, the COVID-19 pandemic will be behind us, but the supply chain has most likely changed for good. The best way to manage the new challenges and succeed in today’s challenging environment is by focusing on procurement in the earliest stages of PCB design and building flexible designs that allow manufacturers to easily move between vendors and suppliers. Likewise, it’s critical to predict upcoming shortages so materials can be procured before they lead to bottlenecks. The good news is that cutting-edge tools make it easier than ever to break down silos and share data between stages, achieving true smart procurement in the entire electronics manufacturing process. 

Mark Laing is a business development manager for Siemens Digital Industries Software. Check out this additional content from Siemens Digital Industries Software: 

• The Printed Circuit Assembler's Guide to ...Smart Data: Using Data to Improve Manufacturing?(a free eBook available for download) 
• The Printed Circuit Assembler's Guide to… Advanced Manufacturing in the Digital Age? (a free eBook available for download) 
• Siemens’ free, 12-part, on-demand webinar series?“Implementing Digital Twin Best Practices From Design Through Manufacturing.” 
• RealTime With ...?Siemens and Computrol: Achieving Operational Excellence in Electronics Manufacturing