Supply chain management emphasizes the importance of making decisions not purely on the basis of cost, but rather on a number of considerations with supplier quality being one of the critical factors. With the trend among global electronics manufacturers toward smaller approved vendor lists, there is more reliance on open market partners to provide thorough vendor screening as an essential first step in quality control. Manufacturers use careful vendor screening to develop manageable vendor lists, and Smith & Associates provides open market access to a broad base of well-qualified suppliers.
Read more: Focus on Quality: Vendor Screening and Open Market Sourcing
The mobile electronics industry is second to the PC industry in microchip consumption for personal electronics. Handsets are increasingly feature-rich and components’ technological advancements across the board improve their agility, power efficiency, memory capability, and broadband receptive capacities. As a result, industry researchers suggest that mobile electronics will soon rival the PC segment in chip consumption.
Read more: Industry Spotlight: Is the iPhone Just the Tip of the Mobile Iceberg?
Today's OEMs and turnkey EMS players look across value chains to link up with the best suppliers and these relationships can change as strategies shift. Suppliers must demonstrate the ability to share information, focus on quality and value creation, and be especially agile during market movements. Lead firms require these capabilities of their partners in order to realize business objectives and compete successfully in the global marketplace.
Read more: New Value Chain Strategies Defining the Electronics Industry
Two points stand out from the first half of 2007: worldwide semiconductor sales increased only 2% YoY for 1H07 (SIA); and DRAM prices dropped over 70% during the same period and are only projected to grow 1.97% in 2007 (iSuppli). Yes, low single digit growth supports analysts' view of a maturing semiconductor market implies stability and predictability. But DRAM and NAND performance highlights the extreme volatility still seen in the submarkets. Today's organizations face the challenge of adapting to diverse market changes and finding open market opportunities that can improve margins.
Read more: Focus on the Open Market: Open Market Review: Volatility and Opportunities