The Supply Chain Benefits of Digital Twins
Digital twins allow companies to conduct virtual “what if” experiments of their production environments without causing disruption
Covid Economics: 3 Ways OEMs Can Reduce Margin Erosion
The Covid-19 pandemic has produced one of the most dramatic and rapid economic crises the world has ever known. For heavy equipment manufacturers in particular, this has led to a drastic dip in new product sales. Yet, from every challenge, however, leaders can emerge stronger and more resilient than ever. And in a time of…
Will Your Suppliers Survive Covid-19?
Many small and mid-sized suppliers to global manufacturers are strapped for cash as the battle against Covid-19 rages on. Companies are either coming off the worst of their regional outbreak; experiencing their peak; or temporarily suspending operations. Several experts say not all of those companies will survive. “[We saw] supplier bankruptcies during the 2009 crash…
Supply Chain Will Feel Impact of Hong Kong Airport Protests
SHENZHEN, China — A two-day shut down of Hong Kong International Airport forced the cancellation of hundreds of passenger flights and caused a fair amount of anxiety in the electronics supply chain. However, as of August 15th, passenger flights had returned to normal and supply-chain pressure had eased. The negative impact on imports, exports and…
Air Cargo Out of Hong Kong ‘On Time’ For Now
The two-day closure of Hong Kong International Airport (HKIA) had not impacted air cargo as of late Tuesday, although future delays appear inevitable. Given the volume of freight that passes through the airport — 5.1 million metric tons in 2018—any disruption of air traffic can hinder cargo departures. Air freight carriers, including Cathay Pacific, FedEx,…
Looking Ahead: What Servitization Will Look Like In the Second Half
The midpoint of the year not only brings new challenges and opportunities, but also provides the chance to reflect and plan for the months ahead. The fast-approaching servitization-centered economy, where companies will no longer sell just products, instead owning the responsibility for the business outcome those products deliver, will encourage a shift to subscription-based businesses…
Tariffs: Will the Electronics Industry get What it Needs?
Editor’s Note: This is the second of two articles examining the impact of tariffs — positive and negative–on the electronics industry. For political pundits, the United States government’s tariff strategy is about political leverage. For electronics OEMs, however, tariffs are about business. “As a United States patron, I look at it through the lens of…
Use TCO as a Sales Tool Against Offshore Competitors
Sixty percent of companies make offshore-sourcing decisions based on rudimentary metrics, such as wage rate, ex-works price or landed cost, often resulting in a 15 to 30 percent understatement of actual offshoring costs. Inclusion of all relevant factors—overhead, balance sheet, risks, corporate strategy and other external and internal business considerations—provides a better determination of the…
OEMs Should Commit to Inventory During Component Shortages
The causes, effects and implications of “The Great Component Shortage of 2018” have been thoroughly analyzed. The automotive and IoT industries have been driving unprecedented demand for smaller and more efficient passive electronics, which in turn has stretched lead times for these once- commoditized components to the breaking point. What hasn’t been discussed, however, is the equal…
Electronic Component Shortages: ‘No End in Sight’
Electronics component shortages are now so severe that some OEMs believe their growth for 2018 could be stymied if they are unable to get parts. “We have not missed deliveries yet, but we are on the edge,” said George Whittier, COO at manufacturing and engineering services provider The Morey Corp. “Shutting down one of our…