3 Tips to Do Supply Chain Management in Electronics Industry Smarter

IEEPA Refund Calculator Investor Relationship Financial Overview Company Overview Financial Overview Corporate Governance Overview Board of Directors Committees Internal Audit Regulations Shareholder’s Insights Shareholder’s Insights Shareholder’s Report Investor Contact Investor FAQ Contact MyDimerco English繁中简中 Home » 3 Tips to Do Supply Chain Management in Electronics Industry Smarter3 Tips to Do Supply Chain Management in Electronics Industry Smarter by Dimerco | Nov 21, 2024 With unprecedented product demand, freight capacity challenges, trade tensions, and more aggressive competition, supply chain management in the electronics industry has never been more complex or costly. And the stakes are high. Inexact shipping schedules for electronics components could halt production lines and delay product launches – with 6-figure revenue losses possible. As a global 3PL that primarily serves manufacturers in electronics and other high-tech industries, there are some common opportunities Dimerco people regular see. This article offers 3 tips to improve your global supply chain operation. For the full story, read our complete eBook: 8 Ways to Streamline Global Logistics for Electronics Products. Manage the Complexities of Global Relocation & Expansion Many electronics manufacturers are relocating operations to new countries to avoid onerous tariffs or simply to increase production. If you make such a move, understand that each country has its own set of regulations and rules. You could easily run afoul of customs and local regulatory requirements without knowing it, or miss out on huge tax incentives being offered by the country’s economic development organizations. Few small and medium-size enterprises have the internal expertise to successfully manage new market expansion on their own. When coordinating supply chain management in the electronics industry, it helps to work with a logistics provider that has deep in-country experience to help you enter new markets successfully. For example, Dimerco helped a leading power supply manufacturer optimize their relocation to India by providing guidance on customs duties and taxes, resulting in significant cost savings. By partnering with a knowledgeable logistics provider, manufacturers can confidently navigate the complexities of global relocation and achieve a seamless transition. Capitalize on Air Freight Consolidation Many makers of high-demand electronics or high-tech products choose to ship products immediately upon order, wishing to avoid idle time that they associate with lower-cost consolidated shipments. Consolidations don’t have to require long waits between shipments, and can save a considerable amount in shipping and customs clearance fees. The key is finding a freight forwarding partner that has the freight capacity and frequent flights in your high-demand lanes. Such a forwarder can consolidate multiple daily pickups into shipments two or three times a week instead of every day – so you get the best of both worlds: lower cost shipping that still meets your customer’s delivery requirements. Also, by combining multiple shipments into a single customs declaration, you reduce your customs clearance costs. Ensure Shipping Document Accuracy Electronics and high-tech companies may spend millions per year on air freight only to have shipments delayed due to paperwork errors. Common errors we see: values calculated with the wrong currency, inconsistent answers to the same questions on different shipment documents, and unclear guidance on whether the freight is pre-paid or collect. If your shipping documents are incorrect, your items could be taken off the plane before takeoff or held at customs at the destination. While you, as the shipper, are ultimately responsible for completing all documents correctly, the right freight forwarder can help. For instance, you’ll gain a huge advantage by aligning with partners that run paperless operations and can eliminate spreadsheets, emails and data entry by automating data transfer. Manual processes always lead to mistakes, so automate whenever possible. Bonus Tip: Work with an AEO-certified partner For shipments bound for Asia, you don’t want products delayed at destination due to the bureaucracy of the customs process. It’s best to work with logistics partners that have Authorized Economic Operator (AEO) status. AEO-member companies adhere to rigid security practices. Customs authorities recognize AEO companies as low risk and, therefore, grant them benefits such as reduced inspection rates and priority dispatch. In China, for instance, companies like Dimerco that have the highest level of AEO status can cut clearance time as much as one full day. To learn more about overcoming common mistakes in supply chain management for technology products, download our e-book: 8 Ways to Streamline Global Logistics for Electronics Products. Or, to discuss how we can help you manage your electronics supply chain, contact Dimerco today. Post Tags: Europe | Malaysia | Supply Chain Solutions | Taiwan | Technology / Electronics | USA We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.ACCEPT Cookie settingsManage consent Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. Necessary Necessary Always Enabled Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously. CookieDurationDescriptioncookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. Functional Functional Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Performance Performance Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Analytics Analytics Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Advertisement Advertisement Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads. Others Others Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. SAVE & ACCEPT