Electronics companies have been dealing with a hyper-competitive global market for years. The need to reduce costs and improve product performance has driven companies to re-organize around new global manufacturing facilities on a regular basis. In many cases, this is done through third party Electronics Manufacturing Services (EMS’s), or Original Design Manufacturers (ODM’s). While reliance on EMS/ODM’s has many benefits including improving return on capital and reducing manufacturing costs, it creates some challenges which must be managed in order to achieve success.

Factors that demand attention:

  • Performance heavily tied to contract manufacturers
  • Global supply chain complexity and visibility
  • Extreme demand and supply variability.
  • Rapid product transitions
  • Intense part, component and raw material price competition
  • Part cost effectiveness and supply chain velocity
  • Component cost volatility, availability and obsolescence
  • Conflict Mineral compliance
Leading strategies for managing supply risk, price volatility and reducing COGS:

  • Aggregate part, component and material demand
  • Leverage aggregate demand with suppliers for commercial benefit
  • Develop aggregate forecast part, component and material demand
  • Broadcast demand to the extended value chain
  • Implement centralized group purchasing models to protect-mask preferential pricing and terms
  • Monitor and verify sourcing program compliance
  • Monitor Conflict Mineral sourcing compliance
Supply Dynamics SDX™ 8.0 Platform Solution Capabilities

  • Extended Bill of Resource Management
  • Supplier Bill of Material Validation & Change Management
  • Consolidation of Part, Component, Assembly and Material Demand
  • Consolidation of Special Process Demand
  • Multi-Tier Forecasting, Planning & Broadcast
  • Elemental Forecasting
  • Multi-Tier Sourcing & Procurement
  • Supplier Rationalization
  • Price & Supply Risk Management
  • Extended Supply Chain Visualization
Engaging Supply Dynamics: 

We play an integral role from initial client contact through ongoing solution support.  Supply Dynamics works directly with clients or in partnership with leading global service providers.  Our phased value approach and supporting processes deliver benefits at each stage of interaction.

Stages include:

Pre-Sales Activity

  1. Identifying initial strategy & value areas
  2. Develop scope for SDX Opportunity Assessment designed to identify & highlight cost savings and efficiency opportunities.
  3. Plan and conduct SDX Opportunity Assessment (on site).

Solution Configuration

  1. Assembling initial ‘Extended Bill of Resource’ Model.
  2. Part Attribute Characterization.
  3. Load production materials (alloy, grade, specification, form, size, and volumes.)
  4. Load materials, parts and BOM hierarchies in SDX™ 8.0 Platform
  5. Link finished part forecast to production material requirements.
  6. Multi-Tier Sourcing Models (e.g. Directed Buy, Buy-Sell Resale, and others).

Solution Deployment

  1. Deploy ‘Cloud Based’ Instance of SDX™8.0
  2. Provide an interface for stakeholder interaction and validation of information

Ongoing Support & Services

  1. Provide help desk support.
  2. Provide ongoing platform support, maintenance, enhancements and new solution capabilities on product roadmap.
  3. Add new commodity categories and/or sourcing models to SDX 8.0 Platform
  4. Provide Supply Network analyses & reporting as a Service.
Value Drivers

  • Leverage aggregate volume to gain commercial benefit with producer.
  • Eliminate non-value add margin est. > 20 percent (over and above margin on value-added services).
  • Standardize production material forms, sizes and specifications.
  • Proactively expedite the timely purchase and supply of production materials across the extended supply network.
  • Provide forecast of elemental inputs to support financial risk management strategies.
  • Improved forecasting & planning.Ensure continuous supply and capacity to avoid supply interruptions.
  • Recover scrap/revert value.
  • Reduce delivery variances through better coordination.