Everything poses its own unique challenges. It’s these hurdles and obstacles along the way that separate competitors. With home electronics manufacturers making large strides in technology, affordability and accessibility, industry revenue is at record levels. Consumer Electronics Association projected 2% growth for 2014, bringing revenue to an unprecedented $211.3 billion. However, this uptick in sales and production has not come along without its challenges. Increased competition and growing consumer demands are making it difficult to maintain market share and profit margins. Creating a supply chain that keeps costs low, products moving and customers happy is increasingly important. Here are four common logistical challenges and two strategies to increase home electronics supply chain efficiency.
Common Electronics Logistics Challenges
63% seek greater control over supply chain costs.
49% claim a lack of visibility into each aspect of the supply chain process.
46% find it difficult to achieve accurate, timely data.
67% of supply chain executives (in a survey conducted by Peerless Research Group) cited increasing supply chain efficiency as a key improvement that needs to be made.
2 Strategies to Overcome Home Electronics Fulfillment Challenges
1.) Increase Visibility: Having end-to-end data integrity is vital to managing an optimized supply chain. 51% of executives feel that full visibility, internally and externally, needs considerable improvement. Putting technology and processes in place that extend beyond the four walls of the distribution center is essential to gathering the accurate and timely data needed for decision making.
2.) Technology Convergence: Most inefficiencies stem from having a multitude of platforms that either don’t communicate with one another, or don’t convey the necessary data. Systems integration and data exchange is imperative as product is moving through a variety of channels and circumstances can change at any moment. Cloud based TMS and WMS platforms, along with partner collaboration and full data integration, are key for a strong supply chain technology framework. 58% of executives cite that existing systems are not well integrated to improve visibility.
The majority of issues facing supply chain management revolve around visibility and technology. Making advancements in technology can provide a better view of real-time data, allowing for more accurate decision-making. With the ability to foresee problems, mitigate risk and proactively address problems, a streamlined and cost effective supply chain can be attained. Barrett Distribution Centers provides a focus on visibility and technology to design and implement customized logistics solutions.