supply chain high tech industry must also

techsuch May 9, 2021 0 Comments

Supply chain for high-tech industry: Design imperativesThe high-tech industry is one of the core sectors that has always beenassociated with innovation and adoption of newer business models. It is,therefore, no surprise that high-tech industry was one of the first to adopt amodern supply chain mechanism in line with the sectors innovating landscape.While supply chain for high tech industry remains highly innovative on anaverage, it is also quite complex owing to the ever-changing market dynamicsand product lines of the industry.The high-tech industry is not only defined by randomly changing product linesbut also involves shorter product life cycles and associated market windows.The rise in the number of high tech industrial centers globally also addspressure on the supply chain lines of high tech industrial enterprises to addwith the pricing constraints. Any product innovation or diversification meansassociated inventory changes that are best correlated with a dynamic supplychain.## Designing SCM for high tech industryA major challenge faced by almost all high tech industrial enterprises is theincreasing regulation compliances which are also evolving with time andindustry. Any conflicting inventory which is not as per the regulations foreach region or country can add to the financial pressure of the enterprises.Thus, the supply chain for high tech industry needs to be designed smartly tocater to the exclusive needs of the industry.While there can be one size that fits all supply chain solution as the supplychain for high tech industry will depend on various parameters, the designprinciples must offer solutions to some of the basic challenges and dilemmasbeing faced by the high tech industry enterprises.## SCM and the innovation edgeOne big imperative that must be essentially a part of any supply chain for thehigh tech industry is that ability to retain its innovative edge. Anenterprise may have the best of innovations and R&D, but if its supply chainfails to deliver the product or services before any rival enterprise, it mayall call for nothing. In this highly competitive industry, the supply chainfor high tech industry must remain free from any bottlenecks to allow forfaster movement of both incoming raw materials and outgoing products andservices at all times.## Supply chain solutions must offer a contingency planContingency planning for supply chain for the high-tech industry is a musthave core component. A popular example is the famous flooding in Thailand in2011, which led to many electronic equipment manufacturers shutting theirshops. The impact was felt across the globe since many of the buyers also hadto completely close their operations. Globally enterprises had no option butto buy at higher costs to avoid production delays. So, any supply chain forhigh tech industry must cater for any such contingency plans to ensuresupplies remain constant and within budgets.## Improved supply chain visibilitySince high tech enterprises usually have multiple product lines, the chancesof supply chain being clogged remain high than other industries. A good supplychain plan must cater for an improved supply chain visibility where the topmanagement can access the supply chain function and take a critical decisionat a faster rate. Be it reducing pressure on supply chain lines or offeringadequate cash flows; top management must work in collaboration with the supplychain managers at all times as an optimally designed supply chain.## Agile supply chains for regulatory changesRegulatory clearances are ever changing in a global scenario. High techindustries are the ones that are directly related to ensuring compliance withall such regulations. An ideal supply chain for high tech industry must beagile enough to allow for all such regulatory changes at a global scale.## Predictive and prescriptive analytics—Must have tools for high techindustry SCMThe use of both predictive and prescriptive analytics is also a componentwhich remains a must-have in any supply chain for the high-tech industry. Withmultiple device connectivities and the use of Internet of Things (IoT), unlessenterprises adopt a predictive analytical model tracing possible trends inreal-time to evaluate the future course of action, they may lose the supplychain edge compared to their more advanced rivals and peers.## ConclusionDesigning supply chain for high tech industry involves adequate planning andmust offer solutions for all possible challenges and roadblocks as discussed.

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