Tech mahindra
Tech mahindra

Supply Chain Challenges in the Hi Tech Manufacturing Industry

Posted by: Subhash Chandran On November 10, 2016 03:05 PM facebook linked in twitter

Today's Hi Tech & semiconductor manufacturers use a mix of captive and outsourced manufacturing to lower costs, scale operations and improve Time to Market. While the use of outsourced manufacturing has provided tremendous advantages, new business challenges have emerged creating operational challenges affecting overall business. Some of the business challenges are

- Increased product complexity, design cost with decreased product lifecycles

- Unpredictable/ Seasonal demands

- Increased compliance mandates from regulatory and customer requirements

- Vendor parts quality and Lot traceability issues

- Absence of proper Vendor collaboration tools

- Tracking quality of parts/ subsystems supplied by vendors

To adequately respond to these challenges, Hi Tech & semiconductor manufacturing companies need visibility into global manufacturing, improved collaboration and decision making between different functions/departments, vendors and out sourced partner companies across the globe. Custom home grown systems and spreadsheets which are currently used by many are hindering the supply-chain transformation goals.

Pain Areas of Hi Tech Manufacturing

To keep track of its manufacturing processes, these companies rely on hundreds of inventory reports from dozens of trading partners in varying formats, including PDFs and Excel spread-sheets.

The manufacturers are handicapped with outdated and often inaccurate information on its outsourced manufacturing operations and also on the supply side due to absence of automated collaboration, end up in parts from Vendors not arriving on time for final product manufacturing. Because of this manufacturers end up reviewing a huge number of manual inventory reports.

Compounding the problem was the multiple inventory systems used by suppliers and manufacturing partners. A single assembly partner may have inventory spread across many factories. When the inventory moves from one system to another, it can disappear from the view of any system for hours leading to inaccurate data. Such inaccuracies in reporting inventory valuation put the companies in danger of falling out of compliance with regulations like Sarbanes Oxley.

Another major problem is tracking the quality of the parts supplied by vendors across the entire manufacturing cycle and also in the field. This results in not stopping rogue parts/suppliers, poor quality of the final product and loss of customer confidence.

How can we address it

To address these challenges, Hi Tech Manufacturers have to have a systems which has

- Real time monitoring of the supply chain

- Real time tracking of work-in-progress [WIP] tracking and inventory management at the vendor

- Automated supplier collaboration process

- Parts quality tracking from suppliers

Tech Mahindra has identified this need of the Industry and in consultation with key customers has developed a state of art platform to facilitate End to End Supply Chain Visibility. This cloud based integrated platform enables integration and collaboration across entire network of supply chain partners, including OEMs, Suppliers, Manufacturers and Channel, for improved visibility, optimization and prediction, resulting in higher customer satisfaction and profitability

Tags: DAVID, Connected Industries
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