Whether it takes months or years, the electronics market—and the broader economy—will rebound. Consumer and industrial demand will pick up, and your supply chain must be ready to meet the demand on time, in full.
Keep reading to learn what the data predicts for the electronics market and how supply chain visibility sets you up for success when the market rebounds.
Is Your Electronics Supply Chain Ready for the Market Rebound?
Where is the Electronics Market Headed?
With some indicators saying demand has bottomed out, and others suggesting a rebound is on the horizon, there’s a foggy outlook for the electronics industry. Agility will be key for manufacturers to succeed in an uncertain future.
With new orders slowing due to reduced consumer demand and inflation, manufacturers have been able to clear out historic backlogs down to 2009 Great Recession-levels.
47%
in a 24 month period
Concerns about volatility and US legislation like the CHIPS Act have led manufacturers to make big changes in their supply chains, including bringing more production to North America. In Q1 2023, there was a 128% growth in SP500 companies mentioning reshoring in their earnings call.
Electronics Manufacturing Shifts to North America
As supply chains diversify to combat pressures and safeguard for the future, recruiting for new locations has become paramount with a 53% higher manufacturing job posting rate in 2022 vs. 2021.
The Competition for Labor Is Still High
Raw materials have become a hot-button issue, with lithium and rare earth materials needed for rising battery production demand. With so much relying on commodity inputs, supply chains are vertically integrating and governments are funding mining expeditions to shore-up inventory.
First Mile Matters More Than Ever
increase from pre-pandemic
64%
Delight Customers at a New Product Launch
In a period of lower consumer spending, the success of a new product launch hinges on your ability to have items in-stock and available for immediate shipping. Supply chain visibility tools allow you to:
Product Launches
Combine inventory views for both in-transit and at-warehouse items
Improve flexibility to redeploy hot items with shorter lead-times
Safeguard your commitments for order cuts with both prepaid and collect visibility
Control Inventory Throughout the Product Life Cycle
SKU-level visibility across the entire supply chain network gives your teams the ability to orchestrate inventory at all stages with greater precision than ever before: know when to expedite, avoid double ordering, track replacement parts, and reduce recall cycle times.
Track individual SKUs in-transit to allow receivers to know when to schedule repairs
Simplify and aggregate reverse logistics visibility channels to reduce recycling time
View inventory on-hand across locations and shipments to reduce over-ordering
Network Redesigns
Inventory Control
Maximize Security
Make Network Redesigns Easier to Track
Supply chains are evolving, and what used to be a streamlined process can now come with multiple vendors and geographies. These changes can make for a big adjustment curve. Luckily, visibility tools can hasten the progress by:
Aggregating all modes and vendors into a seamless multimodal pane of glass
Surface key alerts and insights to help pinpoint problems before they impact you
Provide customizable reporting to guide continuous improvement and planning
Maximize Security for High-Value Shipments
FourKites gives you tools to both prevent cargo theft and to support claims in the event theft occurs. A time-stamped record of the route traveled and clearly documented handoffs allow you to quickly investigate claims with a clear chain of custody.
Protect your cargo with real-time alerts if a deviation occurs from a planned route
Establish custom geofences around high-risk areas for closer monitoring
Maintain a passive log of movements in the chain of custody for auditing & analysis
How Visibility Prepares You for the Rebound
Partnering with the right supply chain visibility provider can make a big difference in your time-to-value realization. Use a provider that can help you move fast to maximize the competitive lift from a rebound. Click the images below to learn more.
FourKites: The Leading Visibility Solution for Electronics Manufacturers
Track Freight Intelligently
Dots on a map don’t help teams make smart and secure decisions on the fly. FourKites real-time tracking provides accurate Dynamic ETAs that help ensure everyone is on the same page when receiving your shipments.
Keep Inventory Flowing, Even in The Yard
If maintaining full control over every SKU across its journey is important, your yard is primed to boost reliability and security. FourKites’ Yard Management System (YMS) infused with real-time visibility can help prioritize unloading and locate inventory faster.
Optimize How You Use FedEx with FourKites X
Stop needless expedites and gain access to real-world reporting to help guide your service level selection, reducing costs and maintaining service commitments.
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US ISM Manufacturing Backlog Index (I:ISMMBI)
Manufacturing Backlogs Reach Lowest Point Since the Great Recession
37.50 for May 2023
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Explore Other Resources from FourKites
How to Navigate a Changing Landscape for Electronics Supply Chains
Playbook
How Manufacturers Remain Resilient Amid Unrelenting Supply Chain Disruption
WATCH
How to Harness a Changing North American Logistics Landscape for Growth
READ
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Don’t wait for consumer spending to return before you make changes. It may feel like you should hold off on digitization efforts, but history shows the opposite. Companies who invested in their growth during the late-2000s global financial crisis emerged stronger when the market recovered.
Here are four ways that improving visibility in your supply chain gives you the control you need to win customers and gain market share.
Schedule a demo to see how supply chain visibility from FourKites can help you streamline production, improve supplier visibility and delight customers.
Product Launches
Control Inventory Throughout the Product Life Cycle
SKU-level visibility across the entire supply chain network gives your teams the ability to orchestrate inventory at all stages with greater precision than ever before: know when to expedite, avoid double ordering, track replacement parts, and reduce recall cycle times.
Track individual SKUs in-transit to allow receivers to know when to schedule repairs
Simplify and aggregate reverse logistics visibility channels to reduce recycling time
View inventory on-hand across locations and shipments to reduce over-ordering
Inventory Control
Make Network Redesigns Easier to Track
Supply chains are evolving, and what used to be a streamlined process can now come with multiple vendors and geographies. These changes can make for a big adjustment curve. Luckily, visibility tools can hasten the progress by:
Aggregating all modes and vendors into a seamless multimodal pane of glass
Surface key alerts and insights to help pinpoint problems before they impact you
Provide customizable reporting to guide continuous improvement and planning
Network Redesigns
Maximize Security for High-Value Shipments
FourKites gives you tools to both prevent cargo theft and to support claims in the event theft occurs. A time-stamped record of the route traveled and clearly documented handoffs allow you to quickly investigate claims with a clear chain of custody.
Protect your cargo with real-time alerts if a deviation occurs from a planned route
Establish custom geofences around high-risk areas for closer monitoring
Maintain a passive log of movements in the chain of custody for auditing & analysis
Maximize Security