Improving electronics manufacturing supply chain agility through outsourcing

Abstract

The highly competitive electronics manufacturing marketplace demands that suppliers provide low‐cost, high‐quality products to their customers in a timely fashion. Shortened product life cycles and increasingly global competition have caused traditional manufacturers to focus on their company core competencies, such as product design and development, choosing to outsource the actual manufacturing of their products to contract manufacturers. Although the decision to outsource can have both positive and adverse effects on key areas of the manufacturing supply chain, one positive effect is that the manufacturer’s supply chain agility is increased. Outsourcing has caused an increase in the amount of information that is shared between supply chain partners. As a result, a greater reliance on suppliers and alliance partners has become essential for company survival. We examine the ways in which contract manufacturing has increased the agility of the electronics manufacturing supply chain.

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