Senior leaders are continuing to grapple with change in the Consumer Electronics industry. At the top of the agenda is decision-making around the changing footprint of manufacturing, investment in technology and managing excess inventory.
The industry will need to continue to reinvent itself and leadership teams are under pressure to ensure a successful future for their organisations.
These key trends are explored in more detail in the latest Consumer Electronics Industry Report.
Manufacturing footprints: With the rapid rise in energy costs, geopolitical tensions and price surge of key materials, we are seeing global organisations re-evaluate their entire manufacturing footprint and materials supply to reduce risk. Industry leaders, with the skills and experience to evaluate self-sufficiency and ‘friend-shoring’ partnerships, are in high demand.
Although China is still a major player in the global manufacturing industry, many organisations are relocating their manufacturing processes to countries such as India, Vietnam, Thailand, Malaysia, and Bangladesh. Co-manufacturers can play a crucial role in bringing the next wave of products to market, and the global market for contract manufacturing is set to grow from $2.0 trillion in 2018 to $2.7 trillion in 2023. [read more]
Technology investment: There is an ongoing demand for leaders with the right combination of cutting-edge IT and Supply Chain knowledge, especially around cybersecurity, data analytics, and cloud-based technologies.
Many organisations are investing in cloud-based digital transformation strategies to mitigate growing concerns around inflation and cost volatility. Supply chain and operational capabilities are front and centre in 2023, and companies are investing to elevate supply chain planning, automation of warehouses and operational tasks, gathering better end-to-end supply chain analytics to create enhanced visibility and maintain operational stability. However, increased reliance on technology is coupled with increased exposure to cyber threats, and many supply chain leaders are investing heavily in cybersecurity response plans and resources. [read more]
Managing excess inventory: The onset of COVID-19 essentially shattered forecasts for countless retailers and suppliers of consumer goods, leaving them without a guide as to how much inventory to stock or manufacture at any given time.
Many warehouses and stores are stocked to the brim with merchandise that shoppers don’t want to buy. Brands must re-evaluate their excess inventory strategy for managing and moving these goods through sustainable means. Companies are innovating on this issue, with some renegotiating smaller but more frequent deliveries with suppliers, while others are creating new ecommerce platforms that sell product at reduced costs, under brand management, with an assurance of quality and warranty.
The rapid changes through digitization and other technological advances have added more pressure to an already limited senior talent pool. Additionally, there will be an even greater need to attract senior talent who are adept at extracting value from these newly implemented technologies. CEOs are thinking about supply chain as a clear enabler for their success and they are looking for individuals for their business, seeking out skilled, dependable nearshore and offshore talent where it’s available. [read more]
To explore the people possibilities for your business and how our network and knowledge can help you implement your vision of the future, please contact Lorna McCabe, Associate Partner.