Global Trade Uncertainty? An Outsourced Supply Chain Can Help

The global economy is evolving on a daily basis given geopolitical tensions, the dynamic trade environment and the ripple effects of uncertain demand. For businesses building complex electronic products and navigating these challenges, working with an electronic manufacturing services (EMS) partner can help. An EMS company that offers comprehensive outsourced supply chain solutions can offer strong supply chain risk mitigation strategies, acting as a competitive advantage for your business.

A great supply chain partner is characterized by four key strengths: proactive supply chain design, advanced analytics tools, comprehensive risk and compliance management and dynamic sourcing teams. By identifying these characteristics in an outsourced supply chain partner, businesses can effectively manage tariff complexities, ensure efficient operations and maintain a competitive edge. This article will explore these four ways outsourced supply chain solutions can help mitigate risk and protect against uncertainty.

Proactive Supply Chain Design

Great outsourced supply chain management begins in the design phase. A dedicated “Design for Supply Chain” service involves early coordination between supply chain teams and engineering services to make optimized component decisions that meet product cost goals. For existing designs moving into manufacturing, these teams can analyze a customer’s existing Bill of Materials (BOM) to assess supply chain health and develop proactive plans for cost reduction.

At Plexus, early supply chain engagement is core to our design process. Our Product Development Sourcing Managers work directly with our engineering teams to advise on the inclusion of Plexus Preferred Suppliers during product design and development. This ensures that the most efficient supplier decisions are made before moving to production. These teams consider critical factors like cost, the number of available sources, component life cycle, and lead-time fluctuations. By examining these factors early on, products can be launched with confidence, knowing that supply chain risk has been mitigated from the start.

Predictive Analytics Tools

A strong set of supply chain risk mitigation strategies must be built on a foundation of predictive analytics. Developments in AI and machine learning allow EMS companies to leverage abundant data as the basis for innovative, informed solutions. These tools use models to anticipate potential disruptions and predict outcomes, enabling smart planning in advance of, or in response to, major system shocks. Predictive analytics can also model and drive inventory strategies that lead to the lowest total cost of ownership.

Plexus has developed proprietary tools that analyze data from multiple sources to provide a comprehensive, predictive picture of supply chain health. Our analytics models leverage supplier data at the assembly and component levels from across our global operations. These tools can also simulate various scenarios, such as changes in demand planning or the impact of part shortages, to help plan for and navigate disruptions in real time.

Comprehensive Supply Chain Risk Management

Today’s EMS partners must demonstrate robust risk and compliance management tools and processes to help global original equipment manufacturers (OEMs) protect their supply chains. This requires combining predictive tools with strong market intelligence, real-time event monitoring, and risk assessment to react as global dynamics unfold. Having a partner with these capabilities is paramount in today’s market as a part of supply chain trade uncertainty mitigation.

Plexus’ ALARM tool is our proprietary solution that integrates strategic sourcing information, market data, and component-level predictive analytics. This tool allows data to drive our risk mitigation strategies. Additionally, to address relevant and evolving US tariffs, our Trade & Compliance team works closely with customers to analyze and advise on USMCA supply chain compliance. The team has built AI-enabled solutions to respond with pace as tariff complexity continues to unfold. These solutions help our customers manage through the evolving trade landscape with a focus on maintaining or reducing total landed cost.

Dynamic Sourcing Teams

A great supply chain organization also has robust and dynamic sourcing teams. These teams must be able to adapt to customer needs while optimizing costs through scale. By leveraging their extensive network and market knowledge, these teams can quickly identify alternative suppliers and components to navigate shortages or other disruptions. This flexibility is crucial in a volatile market where single-source dependencies can create significant vulnerabilities.

Our Plexus Supply Chain team is constantly monitoring the market to identify potential risks and opportunities. This proactive analysis, combined with a vast network of vetted supplier relationships, ensures we can quickly pivot to maintain a stable and cost-effective supply chain for our customers. Plexus’ ability to adapt is a critical component of our overall strategy for mitigating trade uncertainty and protecting against unforeseen challenges.

Core to our approach is building strong, trust-based relationships by working towards our customer’s goals. Our dedicated leaders create customized plans to address risk and cost in every part of a customer’s product, proactively addressing concerns and fitting each customer’s unique needs. We create shared successes by putting our global expertise to work for our customers and identifying supply chain efficiencies, reinforcing our commitment to partnership and results.

Contact Plexus’ Supply Chain Solutions Team

In a global economic landscape marked by uncertainty, working with an EMS partner offering comprehensive outsourced supply chain solutions can provide businesses with a significant advantage. By working with an established partner, companies can effectively navigate tariff complexities, optimize operations, and maintain a competitive edge, ultimately leading to resilient and efficient outsourced supply chains that protect businesses, reduce costs, and secure a competitive advantage in volatile markets.