How Data Analytics Improves the Electronic Component Supply Chain
Companies all around the globe are harnessing Big Data to improve product quality, turnaround time, processes, and supply chain. Electronics companies are now powered by advanced analytics, which leads to utilizing various insights related to customer feedback, productivity, and efficiency. On the other hand, telecommunication companies are using Big Data to understand customer churn, and retailers are using it to understand the product life cycle in retail.
Data Analytics shows indicators for enhanced product development, backed by consumer feedback and can also predict changes in the supply and demand for electronic components. By using Data Analytics in the component supply chain, companies can eliminate errors, waste, and duplicates from their inventory. Study shows that Big Data has decreased the reaction time for supply chain issues and has shown an overall increase in efficiency by 10% and more. More than 25% of growth was seen in the order-to-cycle improvement in delivery time. There are various ways in which Data Analytics can improve the electronics supply chain and transform the industry.
Flexibility
Data analysis in electronics manufacturing can provide foresight in development and rapidly respond to environmental changes. Flexibility is essential in electronic manufacturing development due to seasonal changes, corporate and country policies, changing duty rates, and taxation systems. This requires to capture multiple data points and drive insights systematically.
Reduce Costs
The supply chain is continuously tweaked to enhance productivity and cost-efficiency. Data Analytics-enabled organizations can compare pricing, stock at suppliers, check order accuracy, calculate shipping, and logistics costs on a real-time basis. When companies utilize analytical insights, they lead to better decision making, sourcing the highest quality product and finding it at the cheapest cost.
Increase Efficiency
Supply chain integrated with data analytic tools can become transparent to all stakeholders from end to end. Manual errors are eliminated, and automation takes place with data modeling. The aim of using data is to make the electronic component supply chain more visible, efficient, and increase the opportunity for improvement in the manual process. This directly reflects on the business revenue and enhances productivity for the bottom line of the company.
Predict Changes in Demand
Data Analytics helps companies to predict demand, respond to changes, and more. Demand can be cyclical, seasonal, and influenced by an array of various factors that provides data points and analytics. Organisation uses predictive models to anticipate fluctuations and adjust the supply accordingly. Through imbibing Data Analytics, customer service can be improved drastically. Data modeling is also helping companies to provide personalized experiences to customers and meet their demands in an alluring manner.
Scalability
Organizations using Big Data can attain an ample amount of data to lead a growth strategy. When companies look for scalability and increase the user base, expand into new markets and create new products for an audience, data analysis can be a fundamental base for creating and choosing the right business domain and opportunity.
Towards Smart Factories
In a factory operation and manufacturing unit, imbibing software in the development process is essential and can increase the inflow of data. By using AI, Machine Learning, and Predictive Analytics in operations, it leads to accelerated performance within the unit. Big data is growing by leaps and bounds into the manufacturing arena and requires organizations to streamline the data flow.
The three electronics manufacturing vertical segments (semiconductor, OSAT, and PCBA), require unique manufacturing environments; however, a standardized communication interface is necessary for seamless development. By incorporating data analysis in the electronic component industry, companies are making the entire value chain transparent and productive.
Purchasing officers are equipped with real-time pricing, availability of products 24/7, and can source the product at the best possible price and rate. By improving the efficiency of the systems in the supply chain, the procurement department can also spend more time on customer service and maintaining new vendor relationships to increase the business profitability.
