Technology companies operate in a particularly demanding supply chain environment. The sophisticated components that make up today’s electronics are sourced from specialist suppliers spread right across the world. The technology sector has to contend with short product life cycles so stock may become. Their markets are prone to disruption by new products, new product categories, and new market entrants. With consumers expecting products to get cheaper even with added features, creating a supply chain with minimal disruption can help to keep the costs down. Finally, sales channels are getting more complex. Companies must serve customers online, through traditional retail stores, and increasingly through hybrid routes such as “order online, collect in store” services.
In such a highly competitive market technology players have sought to improve the level of disruption by reducing inventory levels wherever they can. Technology businesses are looking for more effective ways to predict, assess and identify any changes and irregularities in the supply chain and the external environment. Some companies are starting to use Internet of Things (IoT) capabilities that enable a new level of self-awareness and communication between technology devices and their ecosystem. A lot more technology companies are working with supply chain partners to improve risk sharing and value alignment.
.They are trying to establish flexible supply chain networks, a strategy that helps to meet spikes in customer demand. As they build the capabilities to meet their existing challenges, technology companies face new ones, too. Technology companies are now required to collaborate with customers to protect products and services from cyber attack’s.