With a panel discussion at productronica 2021, the ZVEI's EMS initiative provided information on the challenges and realization of compliance, digitalization and sustainability and showed how EMS companies secure business models.
Moderated by Johann Wiesböck, Elektronik Praxis, Markus Aschenbrenner, Zollner Elektronk AG, Michael Velmeden, cms electronics, Christian Rückert, Binder Elektronik GmbH, and Dietmar Günther, Sanmina-SCI, discussed the current and important topics for the entire industry.
Consistency requires digitalization
In summary, here are the most important statements from the discussion round: A central topic in the current situation, which is characterized by massive disruptions in the supply chain, is demand planning and demand management.
Networking and consistency in the supply chain can only be achieved through digitalization. Digitalization also has a major impact on the supply chain. Accordingly, many processes have already been digitalized for years. This is used by OEMs in particular for their requirements. However, this inevitably leads to material supply problems when changes are made at short notice (cancellations and subsequent over-orders).
Digitizing 'old' processes or individual steps in the multi-step supply chain is problematic. This is because only comprehensive solutions make sense. And if customers don't know what they want, digitization won't help either.
Dietmar Günther, Sanmina-SCI
Michael Velmeden, cms electronics
There are major differences between the short-term automotive sector - the just-in-time world - and long-term sectors such as medical technology. The fact that the automotive sector does not always rely on its own forecasts has an impact on the supply chain right through to semiconductor manufacturers, who themselves operate on a long-term basis. Nevertheless, the rules of the game in the supply chain do not need to be changed, but there is still a lot of room for improvement in terms of responsibility and trust. For example, current stocks should be known in the supply chain.
As this is not the case, orders are placed for stock, which further disrupts the supply chain. Over-planning of 20% to 30% is currently expected in the supply chain. It is expected that the tense market situation will ease over the next year, although growth will continue due to megatrends. Investments must be made.
Further digitalization makes sense not only in terms of the speed and consistency of processes, but also because of the increasing labour shortage. Anything that can be automated by means of digitalization should therefore also be implemented promptly in order to reduce the workload and thus the need for manpower.
Climate neutrality and sustainability
As electronics is an enabler for sustainability and climate neutrality, there are opportunities for further business for EMS service providers. In addition, customers in the supply chain are increasingly focusing on a 'local for local' strategy.
EMS companies can provide support with regard to sustainability as early as the design stage of new products, as well as later through rework/repair services (extending useful life) and recycling (circular economy). However, customers must take the lead here and commission appropriate services.
Markus Aschenbrenner, Zollner Elektronk AG
Christian Rückert, Binder Elektronik GmbH
EMS companies have been providing advance services in this area for years. Thanks to CIP (continuous improvement process), the cost-benefit ratio for sustainability measures is also getting better and better. Everyone can benefit from this.
Compliance: a particular challenge
The biggest challenge in connection with compliance is documentation and the amount of documentation required. In the supply chain, compliance data should be recorded and passed on from the source. Every company in the supply chain is challenged here and has a great responsibility. Compliance is part of the corporate identity. In reality, however, there is often no or incomplete information from the source. Continuous labeling would be helpful here.
If you even look at the Supply Chain Act, much of this is not feasible from today's perspective, but the associated effort is huge and the result questionable (a lot of bureaucracy without effects). This is where the trade/industry associations need to get involved. After all, going it alone, i.e. anything that is not a global standard, is a problem for our economy, as international enforcement is not possible and national liability still applies. Politicians must learn to accept this: Everyone wants a fair business basis worldwide. This requires more ethics in business paired with more cooperation and a view of the big picture. In view of the increasing shortage of skilled workers and other challenges, the supply chain must be used as an opportunity to turn partners into partnerships. The current crisis should be a wake-up call for everyone to live up to their responsibilities.
