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Digital Strength in Volatile Times: How EMS Providers Can Prepare for the Future

Reading Time: 2 Minutes 08.05.2024 Currents & Trends

From fast customer offers to crisis-proof supply chains: strategies for optimized electronics manufacturing

In a world where we can no longer imagine products without electronic components, the EMS industry is seeing golden times. Only those who have the right digital equipment can hold their ground in an increasingly volatile future. proALPHA have published a white paper where they examine how EMS providers can strengthen their strategy and enhance their competitive position.

Electronics manufacturing is going through rapid changes. Nowadays, electronic components are an integral part of many products, ranging from appliances to medical technology. The EMS (Electronics Manufacturing Services) industry is expecting a strong growth in sales, with forecasts reaching up to 2030. To benefit from this development in the best possible way, however, EMS providers must continue to advance their digitalization strategies and prepare for an increasingly volatile future.

Key strategies for EMS providers

  1. Accelerate quoting:
    It's crucial to quickly respond to customer requests and create precise quotes. By integrating BOM software tools, EMS providers can improve the efficiency of their quotation process. Automated systems relieve employees, reduce input errors, and accelerate the overall quotation process.

  2. Erweitertes Dienstleistungsportfolio:
    Many EMS providers evolve into E2MS (Electronics Engineering and Manufacturing Services) providers. This means that they not only manufacture products but are also involved in product development, testing and quality management. This change requires an agile IT infrastructure that can quickly adapt to new requirements.

  3. Strengthen supply chain:
    In light of a global supply chain that is strained by the pandemic and geopolitical uncertainties, EMS providers have to digitalize their supply chain management. They require modern software solutions in supplier management and improved information flows to be able to quickly react to changes.

  4. Manage component shortage:
    The lack of electronic components like semiconductors forces EMS providers to adapt their procurement strategies. Efficient component management supported by AI-powered tools helps master the challenges posed by allocation and price volatility.

  5. Quality management and Traceability:
    Seamless traceability is indispensable in many industries as it helps to minimize damage in case of an error. Therefore, EMS providers have to invest in systems that allow for detailed traceability of every serial number or production lot.

  6. Counteract skills shortage:
    One option is to outsource production to countries with more favorable production conditions and qualified staff. Here, too, a progressive IT landscape is required to manage the complexity of globally distributed production sites.

  7. Sustainability as competitive edge:
    In an eco-friendly market environment, EMS providers can gain an advantage by investing in energy management and complying with new environmental regulations. Sustainability is gaining ever more importance in the selection of production partners.

The EMS industry is seeing a promising future, but in order to persist in the long term, companies must set a new digital and strategic course. Comprehensive digitalization that goes beyond the sole automation of production processes is essential for successful positioning in a fast changing market. Find out more in our white paper.

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