Competition is high, so manufacturers must take advantage of every opportunity for business that comes their way. And operating margins are shrinking, so costs must be tightly controlled.
There are currently three common problems associated with the electronic component supply chain. Thankfully, there is a simple solutions for each problem.
A single process improvement can help an electronics manufacturing company effectively conquer each of these challenges: automating the RFQ and PO process.
Here are 3 common problems faced in electronics manufacturing and how to solve them:
1) Supply chain complexity
The growing complexity of the supply chain was the number one concern for procurement executives according to a recent survey. An automated solution integrates with existing workflows, and historical data can be verified instantly without the need for costly and time-consuming research.
Touchless reconciliation of POs, with exception management from a web dashboard, improves the overall functioning of the PO process. Work is completed efficiently, productivity is increased, and the complexity of the supply chain can be controlled.
2) Increased competition
Manual processes are time-consuming and prone to error. Automating a manual RFQ process reduces errors, and increases efficiency so that companies can increase the number of RFQs and RFPs submitted and reviewed. Using Orbweaver Advance, for example, electronic-manufacturing-companies have increased quote responsiveness time by up to 1000% and creates new opportunities to grow your business.
Taking advantage of every available opportunity, rather than letting some slip by due to a lack of resources, will give your company a competitive advantage. Employee time can be diverted from manual data processing and channeled to those activities that add value to the business such as improving supplier relationships and seeking out new business opportunities. Intelligent processes improve company responsiveness and agility, providing information required to make fast, correct decisions in response to a changing external environment.
3) Low operating margins
Manual processes are inefficient with time and resources and are prone to costly errors. Additionally, because tasks in the RFQ/RFP and PO processes are usually interdependent, a single mistake can have reverberating effects throughout the system, which require additional time and resources to correct.
With an automated solution, the processes will operate more efficiently with fewer errors, adding visibility and control and reducing operating costs. Also, it is far easier to track metrics with an automated process, so that process overviews can be reviewed periodically, and problem areas addressed in a timely manner.
Orbweaver Advance is the only process automation solution that was built specifically for electronics manufacturing, by industry professionals. Advance integrates seamlessly with existing systems and processes in your company, to improve efficiency and productivity, saving time and money. Additionally, Advance integrates with supplier systems (MRP or ERP) to access accurate component pricing data and historical data in real time.
A typical electronics manufacturing company will receive thousands of RFQ and PO documents per year, and manually opening, reviewing, sorting, and processing each document is a significant drain on resources. With Advance, this process can be streamlined from days to minutes.
Automating the error-prone and time-consuming manual processes of RFQ intake, execution, management and analysis will free up employee resources that can then be devoted to improving the business in its entirety, by seeking out new opportunities and improving supplier and vendor relationships.
Connect with Orbweaver today to learn more about automating your RFQ process.