Industry Challenges and Solutions for the Electronics Industry

February 27, 2020 | Discrete Manufacturing

The electronics industry is changing as quickly as electronic products evolve. There are few industries experiencing changes at this rate, which means that few industries face as many unique challenges. While the growth of the electronics industry is an exciting prospect for those involved, it also produces plenty of unique challenges that require solutions.

Business enterprises operating in the electronics industry need to find a way to remain profitable as the market gets crowded with more manufacturers. Companies are also managing outsourced products and processes, alongside customer demands for quality, new technology, and speedy delivery.

Here, we’ll outline three of the biggest challenges faced by the electronics industry. But it’s not all doom and gloom. We’ll tell you how your company can overcome these problems with the strategic use of technology.

Challenges of the Electronics Industry 

Monitoring a complicated supply chain

For the most part, the days of creating a product from start to finish in-house are long gone. Most electronics industry companies outsource at least some of their operations to be efficient and economical. While outsourcing offers many benefits, it also creates a complex supply chain with far more points where things can become lost, out of compliance, or otherwise problematic. 

Maintaining quality management

The same complex supply chain also introduces the potential for quality control and management issues. Keeping components and processes in-house allows for easy visibility into quality. Outsourcing makes it harder to keep an eye on what everyone is doing and how. In the end, the primary manufacturer is responsible for quality when it comes to clients, so it must manage these processes, regardless of how complex the supply chain. 

Predicting customer demand

Every manufacturing-related industry is tied to customer demand, but the electronics industry is particularly challenging to predict. Customers expect new, high-quality technology as soon as it’s possible to manufacture it. Companies, however, need to carefully balance supply and demand, operating leanly to meet customer needs without having too much or too little stock. 

Finding Solutions for the Electronics Industry 

Unsurprisingly, technology is a critical component in solving the problems the electronics industry faces. A well-made ERP system provides the functionality needed to manufacture and dispatch high-quality electronics, even across a complex supply chain, without negatively impacting supply and demand.

Our Infor CloudSuite Industrial ERP offers a complete, comprehensive quality control system, advanced tracking by lot and serial number to handle supply chain issues, and inventory control to meet customer demand. Predictive analytics help businesses meet customer demand without overages or shortages. It is the best way to meet the challenges of today’s electronics industry needs.

Decision Resources, Inc. is happy to help you implement an ERP that benefits your company now and in the future. Our team combines an understanding of the electronics industry with expertise in ERP to provide tailored, robust solutions for businesses of all sizes. To learn more or for a consultation, please call our ERP experts at 412.562.9660 or email

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