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ManageMent
www.us-tech.com
Navigating Electronics Manufacturing Challenges in an Uncertain World
By Stuart Love, Director — Global Supply Chain, DSV Inventory Management Solutions
halt production lines and delay product launches in the global electronics industry. These issues hit electronics manufacturing services (EMS) particularly hard. As the world marks five years since COVID-19’s initial impact, major manufacturers still strug- gle to meet consumer demand. The need for reliable EMS solu- tions grows increasingly critical as technology advances and products become more complex. For electronics procurement
C
professionals, the pre-COVID-19 world and the post-pandemic era might as well be two different lifetimes. In 2025, supply chain challenges in the electronics in- dustry continue to make waves. Global conflicts and pandemic af- tershocks cause persistent headaches.
However, a shift is happen-
ing. Signs of recovery emerge, and new opportunities take shape. The global electronic com- ponent market is projected to grow from $186 billion in 2022 to $329 billion in 2031, driven by the increasing integration of electronic elements in a wide range of products.
Landscape Remains Questionable
The global chip shortage
continues to challenge the elec- tronics industry in 2025. Major manufacturers face threats of halted production lines and de- layed product launches. Recent political developments add com- plexity to this ongoing crisis. The CHIPS Act, a strategy
to strengthen U.S. semiconduc- tor manufacturing, faces poten- tial changes. The CHIPS Act pro- vides grants for chip manufac- turing, funds for research and development, and tax credits for manufacturing projects. It has driven significant private invest- ment from leading semiconduc- tor companies. Possible alterations to the
Act could impact the semicon- ductor industry. The U.S. gov- ernment remains obligated to distribute allocated funds by September 2026. However, changes in implementation or re- quirements may occur.
hip shortages, supply chain disruptions, and geopoliti- cal tensions threat en to
Dynamic Inventory Management
In this uncertain environ-
ment, inventory management so- lutions support electronics man- ufacturers. Companies like DSV offer Inventory Management So- lutions (IMS) and Logistics Man- ufacturing Services (LMS) that exemplify effective strategies in the current market. These solu- tions place critical components, including scarce chips, in key global locations. This approach reduces lead times and improves manufacturers’ responsiveness to regional demand fluctuations. Global networks of trusted
transport providers ensure a steady flow of components to manufacturing facilities. Compa- nies can quickly reroute ship- ments through alternative chan- nels, minimizing the impact of localized disruptions and main- taining production continuity. Sustainability emerges as a
key focus in this evolving land- scape. Manufacturers increas- ingly seek inventory manage- ment solutions that not only op- timize efficiency but also reduce waste and environmental im- pact. This trend aligns with growing consumer demand for environmentally responsible pro - ducts and practices across the electronics industry.
Finance and Inventory Real-time data integration
forms the backbone of strategies to keep production lines running 24/7. API and EDI integrations provide manufacturers with up- to-the-minute information on in- ventory levels, shipment status, and potential disruptions. This visibility allows for rapid deci- sion-making and proactive prob- lem-solving. Advanced analytics and ma-
chine learning algorithms en- hance these systems, predicting potential supply chain disrup- tions before they occur. This pre- dictive capability enables manu- facturers to take preemptive ac- tion, further reducing the risk of production delays. Flexible inventory financing
models support continuous pro- duction. Manufacturers can ad- just inventory levels without in- curring significant financial risks,
maintaining adequate stocks of critical components even during periods of uncertainty. These models often include
options like consignment invento- ry and pay-per-use arrangements, allowing manufacturers to opti- mize cash flow while ensuring ac- cess to essential components. Such flexibility proves particular- ly valuable in navigating the volatile semiconductor market. Advanced inventory man-
agement programs optimize every aspect of the process. The Perfect Performance Program, a key initiative of DSV IMS, show- cases this optimization. From picking and packing to inventory tracking, the program uses data analytics to identify and imple- ment efficiency improvements. These optimizations help manu- facturers maximize the use of available components, crucial when dealing with scarce re- sources like semiconductors.
EMS Solutions The electronics manufactur-
ing industry faces ongoing chal- lenges, from chip shortages to geopolitical uncertainties. Com- prehensive EMS solutions ad- dress these issues by covering the entire production cycle. Key services include quality
control, storage, picking and kit- ting, factory acceptance tests, factoring, and field stock loca- tion. These offerings allow man- ufacturers to concentrate on core business operations. Connectivity plays a crucial
role in modern manufacturing. Solutions like online interfaces, system-to-system API exchanges, and automated EDI transfers de- liver accurate, timely, and secure information. DSV’s IMS, for ex- ample, offers these connectivity options to ensure seamless data flow throughout the supply chain. As the industry evolves, in-
ventory management strategies must adapt. Real-time data inte- gration, strategic positioning of components, and flexible financ- ing models help manufacturers maintain production schedules. despite disruptions. The future of electronics
manufacturing hinges on agile, in- telligent inventory management. Companies that embrace adaptive strategies will likely lead the in- dustry. The lessons learned from navigating current disruptions will shape future advancements
in manufacturing logistics. Contact: DSV, 1001 W
Southern Avenue, Suite 202, Mesa, AZ 85210 % 623-289-8520 Web:
www.dsv.com r
June 2025
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