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Electronics

Perhaps no other industry is faced with such rapidly changing consumer demands and expectations as electronics. A product’s shelf-life can be shorter than its production cycle and declining prices in retail markets create an extremely volatile sales environment. Electronics manufacturers are addressing these challenges by enhancing their ability to understand, analyze, and respond to market indicators.

abas ERP provides you and your team the tools to:
 

  • Balance global sourcing to focus on total landed cost
  • Effectively manage over or under production
  • Ensure a high degree of transparency in product warehouses
  • Assess liquidity and optimize cash flow
abas ERP software for the electronics industry
  • Product Brochure

    The key to a successful ERP project lies with having an experienced partner who understands the challenges and requirements of your industry and who can tailor an ERP solution to your specific needs. abas ERP projects are supported by the entire abas partner network and their collective experience from thousands of ERP projects.
  • 7 Steps to ERP Selection

    Managing the selection and implementation of a new ERP system is a major undertaking for any organization, which is why abas has developed a clear and thorough 7-step guide that simplifies the selection process and helps you make an informed, confident decision.

Why speed is everything in the electronics industry - and how ERP software can help

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Software built with innovation in mind

Whether telecommunications, consumer electronics, home appliances and industrial applications such as control technology, laser or measurement technology: few other industries have such a high capacity for innovation and such short product life cycles as the electronics industry. One-third of sales within the industry is achieved through product innovations and almost 10 percent of turnover is invested in research and development - and it’s an upward trend.

For electronics companies, reducing the time-to-market is therefore a decisive success factor in order to quickly recoup expenditure on innovation.

 

Risk factor: development

Manufacturers are increasingly shifting development services onto their suppliers. This shrinks the market shares for traditional contract manufacturing and places EMS service providers under pressure: anyone not wanting to step into the ring with international cut-price providers must position him or herself in the future as a development partner to generate higher added value within the company.

Electronics manufacturers not only bear a significantly higher proportion of the product risks, they also have to perform a balancing act between project-based development and automated series production - with shorter delivery times, longer procurement times and increasing demands on quality.

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Sales drivers: digitization

However, a high degree of innovation involves both risks as well as opportunities for growth: the electronics industry is regarded as the leading sector for digitization and thus is in a key position to increase the potential of the digital transformation. There is growing networking of intelligent products and the share of electronics is increasing exponentially in almost all private and industrial applications. In Asian and Latin American emerging economies, new markets are developing that are fueling the already high export share of the electronics industry.

Today, highly professional, industry-specific ERP systems are increasingly being used, whereas five years ago about 40 percent of IT solutions in electronics companies were in-house developments. Only electronics manufacturers who efficiently manage their processes from development to production will remain one step ahead of the competition.

Innovation distinguishes between a leader and a follower.

Steve Jobs

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Customer-oriented development process
A high level of vertical integration increases the proximity to customers and the complexity of the project management. New products must be developed and constructed in close cooperation with manufacturers and new skills covered through partner networks. CAD/PLM systems that are linked directly to the ERP software and modern communication technologies such as EDI automate the internal and external exchange of information and shorten the time to start of production.

Automated inventory management: 
Short delivery times and minimum capital tied up in inventory - electronics companies need to juggle these two conflicting objectives. ERP systems with sophisticated materials management help to determine the optimum inventory for ensuring delivery reliability, without creating expensive component surpluses that rapidly lose value because of technological advances.

Integrated quality assurance
In addition to speed, quality is one of the most important success factors in the electronics industry. Whether aerospace or medical technology - more and more high-tech products need to meet high safety requirements. ERP solutions with features such as batch traceability and serial number management enable manufacturing companies to comply with the highest quality standards.

Scalable manufacturing:
Whether custom manufacturing, variant or series production, large parts lists, highly automated production with automatic assembly machines or extended workbench - manufacturing companies within the electronics industry require a highly flexible, industry-specific ERP system that maps all types of manufacturing, and makes optimal use of production facilities via just-in-time control while reducing setup costs and throughput times.

abas ERP software functions designed for Electronics

Technology leaders in the electronics industry are on the ball
Globalization and digitization are increasing the speed in the electronics industry. Business models need to be rethought and operational processes sped up. Modern machinery alone is no longer adequate; tailor-made ERP systems, networking customers, suppliers, partners, machines and workpieces are now a requirement.

Optimize your processes and set the pace!

The most important ERP functions in the electronics industry include:

  • Lot/Serial number management
  • Preliminary, concurrent and final costing: Precise costing and permanent comparison of preliminary and final costing at the project and customer level
  • Variant management: Standard, alternative or supplemental product structures
  • Sales order/Project related production list; growing, project related production lists; editable order production list
  • Stock valuation using various valuation methods
  • Device file with lifecycle BOM and spare/wear parts list
  • Capacity planning
  • Production/Assembly planning with graphical console
  • Extended work bench/External processing
  • Service processing: Management of all services for a sold product, such as maintenance and repair
  • EDI communication
  • CAD/PLM Integration
  • Product Lifecycle Management through integrated project management
  • Key figures and evaluations for electrical engineering/electronics, for example, ABC analyses; incoming and backlogged sales orders as well as the production utilization rate; stock levels, coverage and turnover; production efficiency (processing times, minimized setup, machine disruptions, repair frequency and costs); purchasing efficiency (price development, batch sizes, procurements costs, vendor reclamations); evaluation of innovation efficiency (P+P costs vs. revenue with new products, new customers, cost savings)
  • Mobile applications, for example, for sales, purchasing, service, warehouse

See abas ERP in Action!

Try out a demo now with our virtual company!

Streamline your manufacturing and business workflows with abas ERP’s integrated functionality

See how, with abas’ powerful ERP software, all parts of your business can work together seamlessly. Team members in management, sales, purchasing, receiving and production can get on the same page -- in the warehouse, on the road, or in the office -- eliminating bottlenecks and helping your business improve efficiency and profitability.

How much high-tech should be incorporated in ERP systems for the electronics industry

Design - Development pattern - Test Laboratory - Design Correction - Prototype - Design Correction - Test Laboratory - Pilot Series - Production Planning... The electronics industry is facing a dilemma: on the one hand, the amount of time from product idea to series production needs to be quicker and cheaper, on the other hand, the processes in the development and manufacturing of high-tech products are becoming increasingly complex and regulated and therefore more cost-intensive.

Just as it would be hard to imagine manually assembling and soldering circuit boards without SMD lines, all other company processes including production must be streamlined. If manufacturing companies get into difficulties, it is rarely due to a lack of production automation, but rather liquidity bottlenecks or procurement deficits.

Timely deliveries at competitive prices without any reduction in quality will only succeed with a high-tech IT solution that maps, automates and networks all processes throughout the company.

CAD/PLM integration

Customer-oriented and coordinated development is important for increased value creation by EMS providers. The integration of CAD and PLM data in the ERP system ensures that calculations, parts lists and production schedules are based on the latest design data. Design changes and variations in the product life cycle are managed centrally and transparently for all divisions to accelerate key processes and reduce errors.

Scalability and internationalization

The electronics industry is more global than ever. The export quota is high and the supply chains of small and medium-sized manufacturing companies are also becoming increasingly complex and international. Multi-site enabled, scalable ERP software provides country-specific versions and can quickly and easily integrate new subsidiaries, partners and suppliers.

Materials management

In addition to large, flexible parts lists, the extended workbench is also typical of manufacturing companies in the electronics industry. Easy handling of frequently changing parts lists is therefore just as mandatory for ERP systems as management of consignment stock.

Quality and service

Precision and quality are essential in the electronics industry - not only in production but also in after sales service. The objective is comprehensive traceability, which enables complete traceability of products throughout the supply chain to the individual component. ERP device files with a lifecycle parts list as well as integrated batch and serial number management are advantageous.

Production control

Capacity planning and pre-production planning are very important in the manufacture of electronic components. An industry-specific ERP system is packed with features including machine utilization, shift schedules, delivery dates and stock levels in the detailed planning. It automatically delivers parts list changes to production and dynamically customizes order sequences.

Costing and controlling

Despite operating shortening product life cycles more profitably, this presents a major challenge for manufacturing companies in the electronics and high-tech industries. Cost unit accounting analyzes the profitability of customers, products and components and facilitates the future strategic orientation of the company (if necessary in combination with BI tools).

Communication 4.0

EMS service providers are also increasingly involved in development and need to intensify their dialog with customers and suppliers. An ERP system that bundles all relevant data in customer, project and vendor files and makes these available via mobile apps and EDI creates a clear competitive advantage.

Compliance

The use of substances in products for the electronics industry is increasingly regulated by directives such as RoHS, REACH and WEEE. Companies in the electronics industry are under pressure due to the growing complexity of compliance requirements. Manufacturers and their production plants need accurate information on all the substances used to ensure compliance with the relevant environmental guidelines. Industry-specific ERP systems provide suitable tools for the systematic storage and transparent traceability of material data.

Cloud/SaaS

In the smart factory, partners, machines and workpieces are networked in real time via a common technology platform: the cloud. This means an efficient ERP SaaS model is also a prerequisite for successful digital transformation in the electronics industry.

Everything fits, but you’re still unsure?

Then think about which software vendor you trust to accompany your business in its transition from high-tech factory to smart factory. Because only an IT partner that understands the challenges of the electronics industry can provide tailor-made solutions in the ERP system.