Technology & electronics supply chain management

What’s the UPSIDE?

The technology and electronics industry has a lot of moving parts. Between sourcing, assembly and distribution, a smartphone could move between half a dozen countries and time zones to reach a customer’s pocket. To keep every part in a technology value chain operating smoothly, you need a flexible supply chain solution. It needs to help you see what’s ahead while keeping an eye on what’s happened.

We believe integrated logistics is THAT vehicle for transformation. New digital platforms, connected physical assets and game-changing insights are the answer. Get a new perspective and unleash your UPSIDE potential with integrated logistics.

Industry overview

Technology companies are re-examining their value chains to improve resilience and agility. However, they still face challenges as the bottlenecks from the start of the decade persist. Today, a growing number of industry leaders and their lead logistics partners consider digitisation a strategic imperative for supply chains, with 61% of respondents in a recent report mentioning it as a source of competitive advantage.*

*Source: Gartner, April 2022

Along with technology, some distinct themes are providing companies within the industry with pivotal opportunities to grow:

Complexity of sourcing components

Speed to market has become critical for success due to increasingly high consumer demand and shorter product lifecycles.
Research shows that many industries are competing for similar components, fuelling more shortages. Companies are, in turn, rethinking just-in-time (JIT) strategies.*

Digital transformation is gaining speed

Studies show that digitalisation is gaining speed to reduce costs, streamline business processes and bring more transparency.*
New-age solutions like digital databases and graph analytics are being implemented to create a connected supply chain.

Seamless integration through omnichannel retail

Current trends indicate that rising customer expectations have reduced delivery times, adding more pressure on companies.*
Companies, meanwhile, are pushing for seamless integration of offline and online channels to create a combined user experience.

A tech-led push towards sustainability

Growing ESG pressures could trigger technology companies to increase their focus on sustainability.
A recent corporate study showed that companies are realising the importance of scaling modern technologies for a more sustainable manufacturing process. Circular economies and other emerging solutions are also expected to grow.*

*Source: Bain & Company, 2022

Two key focus areas can help technology companies stay ahead of the curve

Agility to drive growth

Increasing visibility: A global survey found that visibility was a big challenge for supply chain executives, with only 2% of respondents claiming to have visibility beyond the second tier of their supplier base. Companies need to share critical information through the value chain to tackle uneven demand and enable proactive planning.*
Accelerating digitalisation: Digitalisation of the supply chain enables companies to address new consumer needs and improve efficiency in reaching their target markets. It can help make technology companies faster, more flexible and more accurate in tackling disruptions.
Developing omnichannel capabilities: Consumers’ expectations of the shopping experience are changing. For technology companies, failure to offer a multi-channel experience can cause them to lag behind more agile competitors.
Improving speed and reach: Speed throughout the supply chain can lead to unprecedented gains for technology companies. A fast supply chain has become a competitive advantage, helping boost market share and customer loyalty.

Man holding electronic scanner in warehouse

Resilience against current and future challenges

Strategic sourcing: Recent global research showed that companies increased their inventory during the pandemic more than diversifying their sourcing. However, regionalisation of supply chains was still a top goal, with 90% of companies wanting to implement it over the next 3 years.*
Collaboration: Despite a rise in transparency, supply chains remain fragmented, with different departments operating on different KPIs. Sharing of information between stakeholders can reduce larger impacts on revenue and help deliver during contingencies.
Accelerating digitalisation: Technology companies are investing in supply chain analytics and alternate sources to better manage disruptions. These investments can also help lower the cost of raw materials.*

*Source – McKinsey & Co, Nov 2021

A perfect fit to achieve serious sustainable goals

With the clear sustainability purpose, Electrolux aims to achieve climate neutrality in its operations by 2030 and throughout the value chain by 2050. Electrolux sees a partner in Maersk who also has ambitious commitments to reducing carbon emissions and has signed up for Maersk ECO Delivery to make a difference. Filippo Milanese, Chief Purchasing Officer at Electrolux, reveals three reasons why he thinks Maersk is a perfect fit for Electrolux; and how together they can show end-consumers that they are serious about change and ready to walk the talk on matters of sustainability.

Filippo Milanese, Electrolux Chied Purchasing Officer

Activating sustainable, end-to-end shipping solutions that accelerate decarbonization is an integral part of our global strategy to build supply chain resiliency and reach. Thank you to A.P. Moller Maersk for their valuable partnership in expanding sustainable logistics and lowering emissions throughout our value chain.

- Jessica Hoffman Kipp, Head of supply Chain Markets & Logistics at HP.

We have been very pleased to see how Maersk has kept honoring our agreements during challenging times in the past two years. This is also why we have awarded Maersk our best partner in Delivery in 2021 and why we are already engaged in conversations of how to further shape our collaboration.

- Koen ten Hove, COO Philips Domestic Appliances.