Why Complex Supply Chains Can Be Dangerous

Getting your supply chain to work effectively is one of the most important aspects of electronics manufacturing. Some companies will rely on a number of different suppliers to source various components for them.

While this can cut some costs, creating such a complex supply chain can create serious problems with regulations, misunderstanding, procurements issues and administrative burden.

Our supply chain management solutions recommend simplifying your chain and working with a supplier who is also a partner.

You may not be compliant with regulations

Complex supply chains which use a number of different suppliers can work out to be more cost-effective. However, compliance is a key issue in electrical manufacturing and when you have a complex supply chain, it can become hard to keep track of things like the accreditation and certification of your supplier.

Having a single, trustworthy supplier, or a combination of a few suppliers that you know and trust, is the solution for compliance. Cutting costs is not worth risking your reputation.

Data can get mixed up

When complex supply chains are in place, it becomes hard to keep track of all the necessary data relating to each branch. This means that, when fast decisions need to be made, your company could be operating without all the data it needs to make an informed choice.

A lack of available data and communication can lead to increased risk to your company and global events are far more likely to impact your proceedings.

There can be hold-ups and procurement issues

When all your electronic components are sourced from different places, it can be hard to work to a timeline, especially if there are hold-ups or any problems at your supplier’s end with sourcing components.

Here at Delta Impact, we believe that a supplier should also be a partner – someone who works with you to prevent problems and issues in advance and puts a strategy in place to avoid hold-ups and procurement issues, rather than reacting when it is already too late.

Administrative burden

Dealing with a number of different electronics suppliers can cause a significant administrative burden on the staff who need to coordinate the supply chain and work out logistics. While it may initially seem as though “shopping around” will save you money, it might actually cost you more for your employees’ time.

Having a simplified supply chain, or an ongoing partnership with an independent supplier, will help to make administrative processes more efficient.

Visit this page for more information on our electronics supply chain solutions.

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