Communication underpins supply chain efficiency

Improving efficiency in the supply chain requires teamwork. That’s why, once again, electronics manufacturing services provider, Dynamic EMS, has brought its distribution partners together for a day of discussion and idea sharing.

When Dynamic EMS hosted a supplier day at its manufacturing headquarters in Scotland this year, the event brought together executives from Dynamic EMS and the company’s main distribution partners. Their aim: to discuss issues in the industry and improve overall supply chain efficiency.

To improve visibility across the supply chain, broadline, catalogue and specialist distributors were all invited, along with service providers and suppliers of mechanical products. Companies attending included Digi-Key, Avnet Abacus, Arrow Electronics, Rutronik, Farnell element14, Future Electronics, Rebound Electronics and America II Europe.

Sharing best practice
Following an introduction from Dynamic EMS managing director, John Dignan, which emphasised the company’s transparent culture, the event was led by supply chain manager, Paul Freeman. Discussion focused on the opportunities and issues that could affect business in the near to midterm, covering subjects such as the company’s growth plans, rising prices, challenges to the supply chain from Brexit, currency fluctuations, and manufacturers’ decreasing inventory levels which could lead to distributors reintroducing allocation. Paul also looked at how the supply chain was changing and iterated that both Dynamic EMS and its partners needed to adapt together by sharing best practices and forming closer relationships.

Dynamic EMS financial director, John Watt, explained: “Companies like us face increasing competition, expanding markets, and rising customer expectation. This increases pressure to lower total costs in the entire supply chain, shorten throughput times and drastically reduce inventories. Procurement of components makes up the biggest part of our spend, with the suppliers who attended making up around 85 per cent of the company’s procurement spend. By sharing ideas, we can identify savings, which are required to ensure optimal cash flow.”

Farnell element14’s CEM business manager, Bill Platt, added: “Hidden costs affect procurement by taking up too much staff time. At the last supplier day, I suggested Dynamic EMS switch from paper invoicing to our e-invoicing portal. This allows Dynamic EMS to quickly see and compare old orders and past spending.”

John Dignan concluded: “The supplier day provides a forum for frank discussion between ourselves and our supply chain partners, allowing us to identify mutual savings and work together more effectively. Our focus on long-term customer relationships gives us a view of the whole product design and manufacturing process, which is also of great value to our suppliers. Every supplier day so far has provided a variety of ideas, which can be implemented. Feedback so far suggests this year is no different.”