GIB Blog

The complexity behind the simplicity in a high-tech product

Large-scale, complex iteration between systems lies at the heart of any innovation, but we can use technological devices with apparent simplicity thanks to the infinite number of varied components. This means that for the latest cutting-edge product to be swiftly launched on the market, it is necessary to have an optimized supply chain. 

The high tech sector, and the electronics sector in general, has seen a marked increase in product complexity and customization over the past five years. Innovation is on the up and businesses in the sector cannot avoid the fact that they will have to engage with it and gain a full understanding of the trend they’re dealing with, streamlining their supply chain so that products can reach the market faster. In doing so, they’ll have to keep costs under control whilst managing the production of devices which are becoming ever more complex.

Supply and demand
Besides the internal complexity involved in production, there’s also the matter of the unpredictable variability of market demand. What happened last year is a clear example, when we saw an increase in the demand for computers and tablets for home-schooling purposes, yet predictions indicated that computers would be used less and less over the next two years, being replaced by telephones. But that’s not the way it went. Rather, there was a huge impact on how production and distribution companies had to organize and plan their supply chains at every level, in terms of both production and logistics, to guarantee everyone the possibility of increasing production.

The high tech sector, in particular, must be able to manage costs and reduce the time-to-market to a minimum whilst optimizing logistics and maximizing the ROI. At the same time, companies have to ensure increased budgets to deal with continuous growth in infrastructures and research and development.

Therefore, as the process of digital transformation is also making its way into our everyday lives, businesses cannot afford to be unprepared with regard to solutions and technology in support of innovation, and the supply chain is becoming invaluable to this process.

The provision of complex raw materials and the ability to simplify and optimize a dynamic chain are the two most pressing challenges.

Time to market
When it comes to material provision, the high tech industry relies on minerals, metals and other raw materials which can be sourced with neither ease nor speed and which also are considerably variable in terms of cost. An ability to manage these types of products within the supply chain is fundamental, as even a small delay in the arrival of just one component can halt the entire production process, causing critical setbacks in that all important time-to-market. When it comes to innovation in this sector, it cannot be afforded for the obsolescence of raw materials to come into the picture in the slightest. It is necessary for technology to work within the entire production ecosystem in order to optimize production through integrated systems which are able to guarantee that raw materials can be supplied within the right time frames.

Forecasting
As a secondary focus, businesses in this sector should aim to optimize the production of technology with systems that are able to obtain a real-time understanding of stock levels and time frames for delivery from suppliers in order to indicate missing parts, error messages, mandatory requirements requests and consumption all at a glance. Examining historical data can provide the direct benefit of understanding the factors which had an impact on technological supplies and production; forecasting demand is the driving force of the supply chain.

Supply Chain Excellence
Implementing GIB Suite in IT systems makes it possible to correctly manage the flow of information along the entire supply chain, eliminating inefficiency due to a lack of coordination. The approach involves a combination of methods ranging from traditional forecasting based on historical time series to the automated learning of variations in real time. This approach makes it possible for forecasting to be both extremely precise and highly reliable, both in the short and long term. The flow of supplies can be determined dynamically based on this forecasting. In particular, users can use the GIB Operations module to navigate around daily procurement operations and make the right decisions for material planning with total confidence. There are predefined standard layouts and those which can be customized for individual users, whereby all the information relevant to MRP can be extracted and visualized.

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