Strategically Navigating Risks Across Your Product Portfolio
July 28, 2023
Should the state of the electronics supply chain limit your product development? We don't think so. Is there a way around it? Yes, and you can find it out in this blog.
The tumultuous years of 2020 and 2021 may now seem distant, yet in 2023, the electronics supply chain continues to grapple with the fallout from the disruption of the global semiconductor market.
The electronics supply chain is currently in a state of imbalance, marked by surplus in some areas and shortages in others. Complicating matters further, regional supply chains are sprouting alongside the established global ones, as individual countries strive for recovery. (Source: Supply Chain Connect)
These circumstances underscore the importance of transparency across the supply chain to avert issues, as well as the emerging necessity of designing with potential risks front of mind.
In a previous article, we introduced the Bill of Material (BOM) Health Dashboard, a Luminovo feature that enables you to address risks in your product designs.
In essence, you can utilise AI for efficient BOM management, real-time supplier monitoring, direct access to critical lifecycle and compliance data, and recommendations for approved Form-Fit-Functional (FFF) part replacements.
However, when we scale up from a single design to managing multiple projects and assemblies, each with thousands of parts, the complexity increases exponentially.
Managing a multitude of products, each with thousands of electronic components, requires strategic forethought to prevent minor oversights from snowballing into major disruptions, which can ultimately result in manufacturers unable to deliver finished products to their customers.
Cross-functional collaboration is vital for integrating all known risk factors into the design process, and for continuously fine-tuning them throughout the product lifecycle. Essential to this process is the ability to monitor the lifecycle and real-time prices of all active components, understand which projects and specific parts are affected, identify possible alternatives, and know which colleagues to contact.
Resilience, then, turns from abstract concept to tangible metric, guiding your decision-making process towards an increased preparedness over time. This means involving procurement early in the design process, monitoring the lifecycle of actively used components, and opting for early purchases of critical components to mitigate long-term risks, a process known as "risk-buy".
As we navigate this complex landscape, the need for modern tools that offer in-depth insights into supply chain risk factors becomes more and more evident.
Managing risk in practice
Luminovo’s risk features offer more than just risk management for individual projects. They enable you to keep your entire product portfolio in check.
Our comprehensive Component Library helps you effectively manage risks associated with the lifecycle and obsolescence of all actively used components, keeping you updated on changes in component availability, lifecycle status, and compliance.
Risk Notifications allow you to track entire assemblies and receive timely email updates regarding changes in availability, lifecycle, or compliance. Real-time monitoring of hundreds of suppliers helps you stay ahead of market changes and potential shortages.
By leveraging our Collaborate feature, the procurement team can be actively integrated into the design process from its early stages. This feature enables seamless coordination of change requests for impacted assemblies, ensuring continuous production and minimal supply chain disruptions.
If not now, when?
Now is the time to seize control of all potential risks affecting your entire product portfolio.
Free your product design from the instability of the supply chain, streamline operations, and maintain a resilient supply chain with a holistic approach to risk mitigation.
Don't just survive – thrive. If this piques your interest, consider booking a demo with us. No commitment, just learnings!