The ideal MRP solution for electronics manufacturers
ERP software and MRP software can be used by companies operating in almost any sector. 123Insight is suited to many different industries within manufacturing and delivers value and benefit to them all.
However, it's also true that ERP software and MRP software invariably function better when they are specialist solutions designed and tailored to the specific requirements of that sector. It stands to reason that such a provider would have a greater and deeper understanding of customer pain points and challenges than a more general ERP software provider.
Electronics is a sector that can be complex and one that faces unique challenges. Whether it’s overseeing product life cycles, bill of materials (BOM), addressing traceability requirements, navigating global chip shortages or managing global regulatory compliance, thriving in electronics can be tough.
Given our extensive experience working with electronics manufacturers, we know that 123Insight is especially suited to such companies. This is why.
Rising costs
No one in electronics needs to be reminded about the many cost issues that have arisen over the past five years. So quickly and in no particular order:
- Energy costs resulting from the energy crisis and geopolitical conflict.
- Price volatility in key materials such as copper, rare earth elements, and silicon.
- An ongoing global semiconductor shortage that has dramatically increased the price of chips.
Alongside escalating costs, UK electronics manufacturers also must be mindful of global competition, particularly from the Far East, where labour and production costs are generally lower. This further puts the squeeze on profit margins when concessions are made to try and retain market share.
123Insight makes a significant difference in managing costs, helping ensure that our electronics customers run as lean as possible. It can provide detailed cost analysis across the entire operation, including procurement, operational expenses, shipping, and more. This makes it much easier for users to identify inefficiencies and put in place measures to help address those and, in turn, improve profit.
It also plays a vital role in forecasting, using many data sources and analytics to understand trends and forecast demand and production needs. Electronics manufacturers can iteratively adjust purchasing strategies, manage stock levels, and reduce the risk of costly overproduction or product shortages.
Managing the supply chain
In recent years, there have been previously unseen levels of pressure on the supply chains of electronics manufacturers in the UK. Brexit was the source of some of that pressure. Although it has been in place for several years now, there is little doubt that its effect can still be felt.
New customs checks, paperwork, and tariffs caused delays in importing components from the EU, from which many UK manufacturers bought. Those delays then had an impact on companies’ ability to manufacture on time and to order. The situation has levelled out now, as manufacturers adapted, but few would state it runs as smoothly as it did prior to Brexit.
It's similar to the global semiconductor shortage, which was triggered initially by the pandemic in 2020. This situation has stabilised, but certain areas of the semiconductor market are still experiencing supply challenges, such as the high-end chips used in AI that remain in high demand.
123Insight gives UK electronics manufacturers real-time visibility into their stock availability and planning. This insight allows them to track components, raw materials and final products at every single stage of production. It gives far greater control and understanding, making it easier to identify potential disruption early in the process and enabling proactive measures to mitigate subsequent delays.
Heatsense Cables Ltd manufactures high-performance cables and wires used in extreme environments. The company implemented 123Insight during the pandemic, and among the many benefits it realised was a 10% improvement in lead times due to better stock availability and planning visibility.
Like most, the company had suffered from supply chain issues. However, the additional visibility that 123Insight provided helped them to purchase more strategically to avoid stock outages.
Regulatory compliance
Electronics is a sector with more compliance requirements than most. Manufacturers need to comply with international standards and certifications, which adds to the administrative burden.
Although regulations such as the EU's Restriction of Hazardous Substances (RoHS) and Waste Electrical and Electronic Equipment (WEEE) directives have been removed post-Brexit, very similar UK versions have replaced them. This means that UK electronics manufacturers must comply with UK RoHS and WEEE regulations for products sold here, and EU versions for products sold in the EU.
123Insight is designed with batch traceability in mind. All the information that needs recording and logging is stored in one place. As well as detailed production information, this can also include suppliers’ delivery notes or test results, for example, making everything easily accessible during compliance audits or when data needs to be analysed for quality purposes. This detailed level of traceability not only improves efficiency and the ability to demonstrate compliance, it also minimises the operational risk and potential long-term reputational damage associated with product recalls.
Navigating a complex industry
123Insight is an MRP software solution that is invaluable to its many customers in electronics manufacturing. It streamlines processes from procurement to production and all areas in between, with automation allowing companies to focus on customer service and innovation instead of manual tasks.
The access it provides to real-time data helps users make quicker and smarter data-driven decisions, improving responsiveness and agility. 123Insight is a solution designed with electronics companies in mind, and its use makes navigating a complex industry significantly easier.
You can see how it has benefitted electronics manufacturers here, or book on one of our free Evaluation Workshops and see 123Insight for yourself.