Once a staple of supply chain management, the spreadsheet is no longer sufficient to manage the rich flow of information needed to make good business decision to minimize risk.
PwC's Global Supply Chain and Risk Management Survey asked about the supply chain operations and risk management approaches of 209 global companies and found that leaders were marked as paying attention to a number of key capabilities, mostly dealing with sharing information across the supply chain.
Today's e-sourcing and supply chain management platforms and programs go a long way toward helping organizations identify and address risk, geopolitical or corporate. On Thursday, Sept. 25, at 1:00 p.m. ET/10:00 a.m. PT, we’ll talk to Dave Bowen, CEO of the e-sourcing firm MarketMaker4, about ways to minimize and manage geopolitical and corporate risk in supply chain and sourcing through the use of technology.
“Technology has, at times, allowed our customers to diversify their supply base, better understand that supply base, and understand where their supplier's own supply chain may hold risk,” Bowen told EBN. “Technology is empowering the identification, qualification, and adoption of suppliers.”
He points to the guitar maker Fender as an example of a mature sourcing organization that buys a considerable amount of printed circuit boards and other electronic content. The company uses a China plus one strategy familiar to electronics OEMs, in order to mitigate the risks created by a single-country procurement strategy. “This strategy offers a lot of opportunity to complement existing assembly and other work on the mainland,” said Bowen. “To do it, though, you need technology that allows you to identify suppliers and qualify and contract with them in their own language. That can have a number of implications: elongating time to market, negotiation time, supplier selection, testing, and engineering. To succeed, you need to find efficiency wherever possible.”
Meanwhile, corporate risk remains a hot topic for electronics OEMs as organizations work to manage requirements around labor rates and labor types, governmental legislation, and more. Regular M&A activity in the high-tech sector also means that electronics OEMs find themselves regularly scrambling to manage their supply chain in the newly formed organization.
We'll be discussing these issues and more on Thursday, Sept. 25, so come by EBN’s chat area and join in the conversational fray. Bring your questions, experiences, and colleagues and come on by.
— Hailey Lynne McKeefry, Editor in Chief, EBN