Supply Chain Changes
In order to remain successful, manufacturing companies must prepare for the future of global telecommunications. The new global standards for technology, software and privacy are going to impact the those who seek continued success in the industry. However, as today’s products and services will better accommodate a global customer, the supply chain standards, systems and equipment will need to be adjusted as well.
Global consumers demand that telecommunications products will continue to help them manage their busy lives. To meet this demand, countries, industries, and manufacturers must adjust the way they operate in order to best serve their customers. Most of the telecom supply chain standards currently in place do not allow for random flexibility – and that is key when serving a global customer.
Now more than ever, organizations with global supply chains are realizing that regionalization makes sense, because costs are reduced and speed to market is faster. It’s important to do tons of research when you are making supply chain changes to locate your assets and source suppliers.
When it comes to the strategic sourcing decisions, you will need to calculate the benefit. Companies should look beyond just labor or production costs, they must assess based on all of the lateral costs involved. These include any potential risks or challenges, additional training, issues with distribution, maintenance, software and many other factors.
As consumers continue to use more technology in their daily routine, future usage will insist we replace our technology at a faster pace, making more telecommunications products obsolete. In fact, recent data states that 23% of telecommunication parts become obsolete every year. This produces a ton of excess inventory for manufacturers and can become a very costly burden. Obsolete components end up creating storage issues in your warehouse and ultimately hinders your company’s productivity.
The supply chain must also be rebuilt to keep up with the rapid pace of innovation in the telecommunication industry. The standardization of components, equipment and software will continue to bridge the supply chain communication gap, allowing more sophisticated systems to track customers and suppliers.
Are Your Supply Chain Changes Effective?
All of the above can be cause for concern, but don’t fret yet – we recommend a plan of action that will help you assess whether your supply chain is as effective as it should be.
- Assess your customer footprint (current and future) and map it against your company’s existing manufacturing and supply chain capabilities
- Calculate the total costs of supply for each alternative location
- Search for advanced manufacturing technologies, learn about robotics and automation
- Rebuild your supply chains to accommodate market and trade instabilities
When you prevent problems within your supply chain changes, you can avoid excess inventory from accumulating, which will save your company money. In order to eliminate excess inventory, keep up with customer demand, and not sacrifice productivity, hiring a third-party vendor is essential. AECI provides that very service to customers. We are industry experts, able to help manufacturers solve excess inventory issues. No matter the type or size of inventory issue, whether it’s excess or obsolete product parts, machinery, equipment or tools, AECI provides you with a smart solution to manage or sell these excess items. Contact us today for more information on our services.