2021: A Year the EMS Industry Needs
It’s a drink from an educational firehose, but the lessons will pay off.
Many will disagree with this column’s title this month, especially supply-chain professionals working 24/7 to address a market with varying material constraints, continual logistics challenges and unforecasted demand spikes. That said, over the past few years the electronics manufacturing (EMS) industry has had a changing of the guard. While some replacements are veterans of the last round of market constraints, most haven’t seen the perfect storm that 2021 represents. The lessons learned this year will create invaluable experience for this next generation of leadership. Here are a few examples:
Information technology. Over the past decade, even small EMS companies have upgraded their IT capabilities to provide real-time visibility into most of their critical metrics. However, while an exception-based real-time system is wonderful in situations where exceptions happen in relatively low volumes, it creates information overload when it is identifying hundreds of exceptions in a month. The current market challenges are driving management teams to analyze what data they need to prioritize and how that data can be best formatted to help them stay ahead of shortages or capacity constraints. This will broaden the use of time-saving apps and create management teams with a better understanding of systems strategy strengths and weaknesses.
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