E-Waste Generated across the years

Sustainability is a Must-Have not a Nice-To-Have

Sustainability is not a buzzword anymore, however, the concept of sustainability remains abstract and complex if it lacks context to make it relatable to people’s day-to-day experience. Though everyone may have different understandings and interpretations of sustainability, we all know that the goal is to minimize negative environmental impact resulting from human activities. This explains why food & beverage, pharmaceutical and apparel industries are taking a lead in sustainability and supply chain transparency. For electronic products, sustainability will never come easy due, in part, to the long and complex supply chain in the electronics industry and the fact that people...

GDP and the Manufacturing Sector

Manufacturing Sector- The Growth Engine of the Economy

GDP dynamics - An important factor for developing supply chain strategies Manufacturing sector has been the growth engine of the global economy for the better part of the last two centuries. The transition from an agrarian to manufacturing economy is still an important indicator of growth, prosperity and rise in living standards for a country. For developing nations, improving and investing in the manufacturing sector continue to be a strategic focus area. Even for a country like India, which has a robust service sector with close to 57% of the economy in 2016 mainly driven by global services trade from information...

Supplier Risk

Risk and Uncertainty

 Is risk a synonym for uncertainty? The thesaurus in Microsoft Word suggests that it is and a Google search confirms it however, when thinking about managing supply chains, there are a different set of actions for risk than those taken to address uncertainty.  The primary supply chain actions to reduce risk involve alternate sourcing, inventory and supplier selection criteria whereas actions to remove uncertainty involve data.  If they really are the same, the risk reduction approach should be the same. Paraphrasing a key point made in a 2016 article about Big Data predictions by Robert J. Abate , he suggests:  “Our analytical...

Value-added services

Will Electronic Distributors Disappear? (Part2)

Is the current distribution model sustainable in the future? To answer this question, let us re-examine whether the three prerequisites mentioned in WILL ELECTRONIC COMPONENT DISTRIBUTORS DISAPPEAR? (PART 1) will continue to exist for the distribution businesses. Re-cap of the prerequisites: They keep inventory to provide materials to buyers faster than manufacturers do. It is costly for manufacturers to manage many small customers. Information asymmetry provides a profitable earnings opportunity through the gap between selling and purchasing price. Re-examination of these prerequisites: Fast access to material and a more responsive supply chain weaken the dependence on inventory. Inventory was never a must...

Author: Category: Component Pricing, Cost, Other, Overhead Costs, Product Cost, Security of Supply, SourcingComments: 0Post Date: November 30, 2016
Supplier Resiliency

 Supplier Customer Diversity Sensitivity and Resilience

In my last blog, Supply Chain Crash Test, I asked if your supply chain could withstand a tsunami like event that might wipe out many component suppliers who serve supply chains of the OEM or EMS companies that would cause it. I asked you to postulate what would happen if Apple had experienced the Samsung battery problem; this would be a tsunami … do you know the impact it would have on your supply chain? In the blog, I stated that there are three important things that you need to know about the suppliers and manufacturers in your supply chain: ...

Author: Category: Corporate, Financial, Other, Stakeholder Expectations (2), Strategy, UncatagorizedComments: 0Post Date: November 21, 2016

“We supply the science – you supply the art”

In October, I attended the i2030 National Manufacturing Summit in Ottawa Canada, co-hosted by industry groups the CME (Canadian Manufacturers and Exporters) and the CMC (Canadian Manufacturing Coalition). The agenda was geared towards manufacturers and, considering our customers worldwide are comprised of OEM, EMS providers and ODMs, it was certainly topical and relevant to Lytica. Many of the discussion threads touched on the 4th industrial revolution or Industry 4.0 for short.  For the purposes of a refresher and setting the context,  the 1st industrial revolution was denoted by mechanization, water and steam power – indicative of the late 1700’s and early 1800’s. ...

Role of component distributors

Will Electronic Component Distributors Disappear? (Part 1)

Undoubtedly, electronic component distributors have contributed to the tremendous development of the electronic manufacturing industry for a long time. Being the middleman between electronic component manufacturers and buyers of components, distributors provide value to both parties, allowing them to maintain and grow their business. The diagram below demonstrates the role of component distributors in a simplified supply chain. Distributors offer major value to buyers by addressing 3 key procurement needs: They provide purchasing channels for small manufacturing companies who cannot purchase direct from the manufacturers. They shorten purchasing lead times by maintaining a certain level of inventory to meet both unexpected...

Author: Category: Other, Risk, Security of Supply, SourcingComments: 1Post Date: November 7, 2016

Supply Chain Crash Test

Automobile manufacturers are constantly driving their cars into crash structures to see how they stand up. When was the last time that you crash tested your supply chain? What would have happened to your supply chain if Apple had experienced the Samsung battery problem? A year ago no one could have predicted that the number 2 smartphone company would be in disaster recovery mode due to safety issues with their phones. Obviously their sales will be impacted from a loss of customer confidence that may take years to restore. Unfortunately for Samsung, their washing machines are also failing, exacerbating the...