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Thomas Hillek and Rolf Stähler of KPMG Consulting identify the challenges of the downturn and suggest responses.
Chain reactions - Part 2 | Part 1| Part 3
EMS providers have evolved rapidly from board assemblers to sophisticated supply chain partners offering everything from design and new product introduction centres, box-build and systems assembly, to fulfilment and after-sales support. As a result of the characteristics and risks in the EMS industry, EMS providers face many challenges. One example is the shortage of components used in the manufacturing of circuit boards and full system assemblies that have led the EMS industry to build up inventory on constrained items. This has led to high carrying costs, as the EMS providers have had to deal with obsolescence and excess inventory.
Further challenges such as a lack of common part numbers, rapid material quotations and increased variety of customer service offerings increase the demand to co-ordinate successfully the manufacturing network backbone by investing in intelligent supply chain planning and collaboration solutions.
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International Consultants' Guide 2002
Copyright © 2002 |
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Market Overview