The elctrical and electronics industry is experiencing rapid change. This is mainly due to the merging of consumers, computers and communications, which is known as 3C convergence. The 3C convergence trend is linking the IT and digital home appliance industries and is responsible for the emergence of mobile phone TVs, VoIP and other new services as hotspots for electronics investment. 3C convergence is also making computers so widely available that consumers expect additional functionality and great pricing when purchasing almost any computer product today.
Common characteristics of the electrical and electronics industry
  • Complex supply chains.
  • Constant new technologies.
  • Multiple subcontractors and outsourcing for components.
  • Complex supply chains.
  • Multiple subcontractors and outsourcing for components.
  • Aftermarket service.
  • Consignment Stock.
  • Highly competitive.
  • Forecasting.
  • Make-to-stock.
  • Assemble-to-order.
  • Make-to-order.
  • Product change control.
  • Complex bills of material.
  • Short product life cycles (Moore's Law).
  • Catalogue sales (on-line and paper-based).
  • Consignment stock.
  • Diverse product ranges.
  • Forecasting.
  • Make to stock.
  • Capital intensive.
  • Highly automated.
  • High research and development costs.
  • Technology driven product innovation.
  • Offshore distributed manufacturing operations.
  • Product licensing and patenting.
  • Marketing intensive.
  • Trade shows.
  • Large complex sales network.
  • Falling prices.
  • Service global markets.
  • Demand driven by consumer and business income.
  • Demand driven by technological advances.
  • Demand driven by budget cycles.
  • Dependence on a few chip manufacturers.
  • Highly automated manufacturing environment.
  • Subject to export legislation.

Electrical and electronics industry challenges

  • Control product design changes.
  • Minimise obsolescence.
  • Innovate using new technologies.
  • Maintain supply and demand visibility.
  • Ensure product quality.
  • Improve communication, collaboration and integration with the value chain.
  • Provide aftermarket support and maintenance.
  • Manage and track warranties, warranty claims and returns.
  • Maximise supply chain visibility and efficiency.
  • Manage demand and supply for outdated parts.
  • Plan and manage distribution and goods in transit.
  • Manage product promotions and complex pricing.
  • Plan for and manage seasonal demand.
  • Remain profitable in a price pressure environment.
  • Control customer receivables and manage cash flow.
  • Develop, introduce and manage new technologies.
  • Legal and regulatory requirements - alignment and accountability, external and internal disclosures, risk mitigation.
  • Optimize inventory while meeting customer service level targets.
  • Monitor and report on safety compliance for hazardous goods disposal.
  • Ensure efficient warehouse management and order picking and packing operations.
  • Compete in a highly dynamic and competitive global market.
  • Improve time-to-market and streamline business processes.
  • Provide customers visibility to orders, stock availability and account status.
  • Manage and track warranties, warranty claims and returns.
  • Minimize risk of defects and product recalls.
  • Manage product recalls.

Industry Solution