Contract electronics supply chains are filled with risk. Electronics contract manufacturing extended supply chains must take into account product complexity, short product lifecycles, forecast and market demand uncertainty, as many as 300,000+ third-party partners, and considerable amounts of business process outsourcing.
Directors, managers or controllers in manufacturing corporate finance, operations, compliance and audit (internal and external) face the greatest impact to job and career performance.
Meanwhile, upstream in the supply chain to the positions above are centralized operations professionals in the manufacturing organization: engineering and sourcing and commodity managers, purchasing and procurement managers and directors, supply chain and category managers… Yet, these centralized manufacturing enterprise decision makers are, typically, less focused on compliance.
The road to successful manufacturing supply chain compliance is pock marked by customs delays, costly penalties, and restating manufacturing financial statements.
The significance of managing risk and addressing errors and mistakes made by manufacturers with interest in matters pertaining to manufacturing country-of-origin (COO), UNSPS code management, and HTS codes accuracy plus, tying all of this together with a multitude of contracts and agreements governing the manufacturing enterprise relationships (rules of engagement) with their supply chain partners cannot be underestimated.
Manufacturing enterprise financial control and regulatory control typically rests with the manufacturing CFO. And yet, as the economic buyer many CFOs are not equipped with adequate budgets to spend on addressing the manufacturing supply chain risk their companies face.
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Below are just a few of the many actions and processes manufacturers can consider implementing to help align centralized manufacturing operations professionals with BOD mandates for enterprise CFOs tasked with overseeing manufacturing supply chain compliance.
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This article assumes manufacturers reading this have an integrated enterprise resources planning (ERP) system already in place, understand EMS manufacturing internal costing and, have robust bill-of-materials (BoM) management tools pertaining to accurately estimating pricing of EMS fees and services. Our list below provides actionable suggestions.
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