Mapping Out a PCBA Supply Chain Strategy in Five Moves

PCBA and electronics manufacturing supply chains are more complex than ever. To assemble modern electronics, companies must source materials and electronic components globally, necessitating interaction with numerous international suppliers and raw material distributors, each with unique vendor relationships.

This interconnectivity makes avoiding disruption and volatility difficult. The electronics industry saw this play out on the main stage during the COVID-19 pandemic. Our global supply chains shut down, and everyone felt the pain.

What’s more, assembling modern electronics often requires highly sophisticated capabilities. Products today need to be compact and durable, but also lightweight and user-friendly. Hardware OEMs (original equipment manufacturers) and technology companies have the difficult task of creating innovative products at scale that meet these requirements while still remaining cost-effective. It’s a hard balance to achieve, especially while adjusting to a post-COVID world.

Electronics OEMs are now exploring ways to increase supply chain resilience and performance without decreasing profitability.

This is possible, so long as companies develop a robust supply chain management strategy. Leaders today need to realize that supply chain management is much more than a back office function or cost center. The supply chain can serve as a competitive advantage and significant source of value, particularly in a space like PCBA manufacturing and electronics production where supply chain management practices are long overdue for a makeover.

The first step towards elevating the electronics supply chain is to synchronize it with overarching business goals. After all, without the supply chain, there is no supply. There are no goods to sell or customers to serve. Producing great electronics and generating revenue starts with managing supply effectively.

But this is easier said than done. As mentioned above, supply chains involve many players with their own priorities and businesses to manage. Electronics OEMs rarely have complete visibility or control over their suppliers. Consequently, what supply chain experts should focus on is maximizing efficiency between their organization and anyone whom they depend on for materials.

Today, when market prices can fluctuate quickly and disruption is everywhere, efficiency is key. Hardware OEMs and their suppliers both need access to accurate, real-time market information to make educated decisions. They should also be able to problem-solve and collaborate together seamlessly.

This is a new way of thinking for many hardware technology OEMs. That’s why it’s crucial to connect the dots between the supply chain and overarching business objectives. Our supply chains have to evolve for the sake of enterprise longevity.

Modern supply chain strategies should also put more emphasis on the needs of the end user. It’s all about delivering what consumers want when they want it. Hardware OEMs no longer have the leverage to spend years developing and extracting value from product launches. Profitability comes from constantly innovating, which requires keeping close tabs on what end users want.

Furthermore, hardware technology OEMs have to meet delivery promises on time and on budget. It’s hard to recover from a misstep, and competitors are happy to take advantage of someone else’s mistake.

Packaging and quality assurance are two under-appreciated ways to enhance brand credibility with end users. Both contribute to long-term relationships and trust. Packaging should be well-designed and tailored to the target audience. Quality assurance should be rigorous and consistent to ensure customer satisfaction. Companies should focus on both of these areas to ensure long-term success.

Need to streamline your delivery timelines? Read Get Your PCBA Product to Market Faster to find out how.

In electronics manufacturing, it’s essential to learn and keep improving. So much is changing as a result of modern technology. It is becoming easier to fall behind. Meanwhile, thriving niche players can coexist with industry giants. Hardware OEMs leaders can take lessons from both.

Supply chain management today must involve frequent evaluation of what competitors are doing. With everyone moving so quickly, teams can identify gaps in the market by asking:

• What problems are people overlooking?
• What end-user groups are companies under-serving?
• What issues are industry giants ignoring that SMBs (Small and Midsize Businesses) can address?

From here, it’s possible to develop game plans that create separation in a crowded technology market. Again, the supply chain department has to get involved to capitalize on any opportunity.

Listen to Parker and Stephen discuss globalization, corporate consolidation, and reshoring with David Schild, Executive Director of the Printed Circuit Board Association of America.

With the electronics industry in constant flux, leaders must regularly revisit their technology vision. This vision then informs how the supply chain has to maneuver. Effective supply chains of the future will adapt efficiently to new innovations and trends. They’ll also forecast accurately and respond resiliently to unforeseen events.

To achieve such supply chain agility, managers have to:

• Monitor shifts in electronics consumption patterns 24/7
• Watch for potential disruptions in the PCBA supply ecosystem
• Leverage new technologies to enhance manufacturing efficiency

Together, these actions empower supply chain teams with deeper insights and the capabilities needed to thrive over the long term. At MacroFab, we’ve worked hard to design our electronics manufacturing technology platform so that it enables this agility and informed decision-making, recognizing how important these traits will become.

Need to lower risk in your supply chain? Read Risk Management Strategies for Smaller Electronics Companies now.

Finally, electronics OEM teams must work better together. Everyone from engineers to logistics personnel must communicate effectively. Departments can’t operate in isolation with their own data points and priorities. The collective electronics production team has to work together towards the same goal. Having a culture that emphasizes continuous improvement and transparency is
paramount.

With technology solutions that streamline communication and track performance metrics across the entire production lifecycle, it is easier to promote continuous improvement.

Transparency is equally important, given the need for all enterprise functions to move in lockstep faster than ever. That’s why electronics OEMs need technology that can store vast amounts of data securely, distribute access easily, and present information in a way that is clear to all team members.

Supply chain management is central to electronics manufacturing success. Having a solid supply chain strategy is what will separate the winners from the losers in the future.

In this article, we covered five elements that make a compelling strategy:

• Synchronize your supply chain strategy with your business strategy
• Prioritize the electronics end user
• Learn from industry giants and niche players
• Update your technology vision regularly
• Nurture the team and set clear PCBA operation goals

A common thread through all of these points is the need for adaptability and foresight. Hardware technology OEMs have to pivot, make informed decisions, and plan ahead well.