The increasing tendency to approach as a strategy for organizations that focus on the achievement of the market’s proximity among others. Approaching information such as increasing the cost of labor worldwide, geopolitical tensions are directed among others. Companies are modifying their strategies in the supply chain, which focuses on production operations at the same place or nearest place like the final market. This method is widely used in Portable electronics For products such as tablets, smartphones, laptops among others for their supply chain right from design to delivery to the consumer.
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Re -supply chains: beyond cost saving
The attractiveness of the cost of labor for decades has created overseas strategies in remote manufacturing centers. However, during the COVID epidemic, the failure of these overseas strategies was exposed. Factors such as delaying transportation and increasing logistics costs among others lead to transportation as well as manufacturing companies about their strategy alongside their priorities. Using the low cost of work in neighboring countries, it is close to achieving the same cost efficiency. This will lead to an increase in the supply chain as well as reduced lead time. This strategy is expected to have a significant contribution, especially in the portable electronics industry, where it is needed depending on the consumer demands.
For example, consider the entire supply chain of a smartphone. Traditionally, the required components are made from several countries, then gathered in different countries and then sent to their consumers in different countries. This complex and long supply chain is exposed to many factors that lead to disruption, especially for portable electronics. In contrast, a close approach is to shorten these distances. For example, consider a company that serves the North American market, for example, approaching the move from Asia to Mexico, focusing on geographical proximity. This change in strategy reduces risks and improves control over quality and intellectual property.
The most important strengths points: Mexico and Eastern Europe are profitable
Some countries are increasingly preferred to become profitable places for proximity, especially for the consumer electronics industry. Mexico, for example, is considered one of the lucrative options for North American companies to move its production units from Asia to Mexico. The cost of competing in Mexico, along with an electronic -based infrastructure, is an attractive alternative to Asia Oceania factories. In addition, its intense support for intellectual property, such as the United States, is more attributed to the request of North American companies.
Likewise, Eastern European countries such as Poland, the Czech Republic, Hungary are attracting companies that target Europe as their ultimate user market. These countries offer a combination of low costs compared to Western European countries such as Germany. Eastern European countries offer developed infrastructure as well as smooth access to the EU market. This advantage of geography provides access to quick delivery time for European consumers and also helping to provide a quick response to the consumer process in Europe.
Beyond proximity: agility, quality and stability
Other benefits of approaching are supply chain agility, shorter transportation routes, as well as the rapid response to market conditions. The agility provided by this strategy for consumer -based industries such as portable electronics is important because of frequent changes in consumer preferences. In addition, quality control is another important advantage. Along with closer production operations, collaboration between engineering and design and teams become more innovative. Real -time communications as well as frequent visits to facilitate the accuracy of the errors created during production processes. This results in less defect and higher product quality.
In addition, the proximity is in line with the increasing preference of consumers over stability. Shorter transportation distances are transcribed by a reduction in carbon footprints that help companies meet social, environmental and sovereignty goals. For consumers, who are increasingly cautious about their impact on the environment, products produced in the electronic industry close to them are attracted to the transparent supply chain.
Horizon challenges: Cost, infrastructure and skilled work
Approaching a few major challenges, such as the higher costs of initial production compared to overseas models. In addition, the overall cost of land is expected to be lower due to lower tariffs and is expected to increase production costs per unit in close places than low -cost countries. Jobs must evaluate the total cost in terms of overall cost, risk among others.
In addition, infrastructure variability creates obstacles because all the locations around it that provide potentially keep the infrastructure needed to produce. In addition, it is necessary to obtain a skilled workforce to produce advanced products such as advanced portable electronics, which is expected to be challenging in some countries.
End
Approaching is a growing strategy adopted by companies, especially in world trade, which is due to the need for supply chain optimization, increased costs, including other. This strategy offers considerable benefits, including faster response to market changes, improvement of agility, controlling quality increase among others. Mexico and Eastern Europe are expected to be profitable as the poles. This is due to their competitive costs, strategic locations and designated infrastructure. The initial costs of production are higher and the acquisition of skilled labor is the challenges that this strategy faces. However, the general benefits provided by the proximity make it a preferential strategy for portable electronics.
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