Managing Risk in the Electronics Industry Supply Chain

In the electronics industry, you need the right information at the right time. Learn how The riskmethods Solution™ helped Sub-Zero avoid disruption and prevent downtime.

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Don’t let disruption short-circuit your supply chains. We take the shock out of risk.

Small components, big threats: Tightly clustered suppliers and powerful key players in risk-prone regions. Demand shifts and shortages magnified by the COVID-19 pandemic. Strict regulation of electronics and customers’ industries. How can you control such challenges and avoid disruption? With state-of-the-art risk management. 

Three Reasons Why Your Electronics Supply Chain Is at Risk

Why Manage Risk with The riskmethods Solution?


Be risk aware

Make better decisions. Include supply chain vulnerabilities, such as site clusters, in supply chain and sourcing decisions


React faster

Ensure business continuity. Be ahead of the competition when responding to events or trends that could lead to shortages 


Be proactive

Protect your margins. Proactively ensure compliance and make your supply chain more resilient

Use a Total View of Risk to Overcome Your Supply Chain Challenges


Challenge # 1: Component Shortages 

Geopolitical risk, natural hazards, and COVID-19 disruptions crimp supply.

Challenges: Major risk events, such as the coronavirus pandemic, cause delays or cancellation of electronics product launches. This comes on top of sanctions, powerful key players, man-made and natural disasters. A simultaneous leap in demand by IoT, automakers, and telecoms contributes to a semiconductor shortage that could last at least another year.

With The riskmethods Solution, you can: 

  • Get early warning signs on mechanisms that could lead to component shortages
  • React faster to events that disrupt your global supply chain. Real-time notifications and ready-to-use action plans help you streamline your mitigation actions
  • Optimize your sourcing strategy. Reveal sole-source situations or site clusters, and assess whether you have regionally diverse alternatives. Where single-source suppliers or vendors have too much influence, initiate appropriate measures

Challenge # 2: Regulatory Complexity

Electronics and a range of vertical industries are subject to heavy regulation

Challenges: Electronics are strictly regulated, and components are critical to other heavily regulated industries. Compliance violations at any stage could ripple across the supply network. Regulations include:

  • Restriction of Hazardous Substances (RoHS) 
  • Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) 
  • Dodd-Frank Conflict Minerals
  • Fair-labor practices, human trafficking laws, and modern slavery legislation

With The riskmethods Solution, you can:

  • Get real-time information on compliance issues for all your third parties, including your sub-tier suppliers. This enables you to take immediate action to protect your company’s integrity and reputation 
  • Know where your (raw) materials come from to ensure you’re not violating any sanctions 
  • Assess all your suppliers, contractors, and third parties for compliance, sustainability, CSR requirements, and human rights aspects

Challenge #3: Supply Chain Visibility

A large and complex supply network exponentially increases risk, and puts pressure on margins

Challenges: The electronics industry heavily relies on suppliers, contract manufacturers, and third-party logistics (3PLs). A technology company has 125 tier-1 suppliers on average, and more than 7,000 business partners across all tiers, according to recent McKinsey research.

With The riskmethods Solution, you can:

  • Visualize your suppliers, sub-tiers, third parties, and all logistics hubs on a world map 
  • Monitor all supply chain activities in real time. Uncover risk end-to-end, from your n-tier suppliers to customers downstream. Understand how incidents in your supply network affect your business
  • React faster and protect your margins by having mitigation plans ready. Set the right priorities and streamline remediation across your organization, as well as with suppliers, contractors, and third parties

Customers all over the world rely on The riskmethods Solution

Have a question about managing risk in the electronics supply chain?

Ask away – no question is too hard for our SCRM experts! Fill out the form and we will be in touch to schedule a time to talk.
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