Simple supply chains boost efficiency

Dynamic 1Minimising supply chain complexity creates a more efficient, agile organisation, that can respond rapidly to consumer demands, explains electronics manufacturing services provider, Dynamic EMS.

With a customer base spanning several high reliability industries, including medical and aviation markets, Dynamic EMS is tasked with providing high quality products and services. It combines this with a competitive cost structure achieved, in part, thanks to a policy of continuous improvement across the company. One area currently coming under scrutiny as part of this total quality management system is the supply chain, the success of which underpins timely order fulfilment.

Managing director of Dynamic EMS, John Dignan, explained: “Over the past ten years, our industry has faced several disruptions that have affected the way customers want their supply chain to operate. Whether it’s an ash cloud, defective software, the need for customisation or bankruptcy, customers are more aware of how fragile their supply chain can be.”

So, what does this mean for the way EMS companies operate? Minimising supply chain complexity is one way to create a more efficient, agile organisation, that can respond rapidly to emerging demands. A natural starting point is to identify the operational improvements most likely to affect business results. Dynamic EMS took this step using lean, six sigma, and advanced analytics to more effectively link process improvements, business performance and organisational priorities.

John Dignan said: “Dynamic EMS invested in smart resources and intelligent systems with improcved classifications that account for complete traceability up and down the supply chain. Specifically, we have invested in component sourcing, materials management and inventory control; these factors are crucial to the success of meeting our customer’s delivery dates in a systematic and cost effective way.

Component sourcing
Sourcing is evolving from a tactical, to a strategic business process. Dynamic EMS operates both offshore and near-shore sourcing strategies to complement its local procurement, which
results in customers often having a hybrid solution, achieving cost benefits through economies of scale.

Finely-tuned materials planning also helps optimise freight costs, as expensive overnight and expedited deliveries are reduced. When trusted suppliers know what is needed they can work around lead times and transit times to achieve the lowest cost shipping option.

Materials management
Materials management plays a huge role in the organisation and operational efficiency of a supply chain because waste threatens productivity and raises the cost of manufacturing. In many ways, materials management is therefore the backbone of the manufacturing process.

Dynamic EMS strives to eliminate waste, reduce material costs and manage the bill of materials to shorten lead-times, while responding to fluctuations in customer demand or market forces. The company’s inventory management programme also optimises stock holding levels to minimise the liability of excess inventory, utilising, wherever possible, its supply chain partners’ capabilities to provide the best solution for all parties.

From design, throughout the entire production lifecycle, Dynamic EMS and its partners will suggest, investigate and help implement cost reduction programmes, as well as protect against obsolescence or availability issues.