The Indian electronics industry continues to demonstrate unprecedented growth, driven by its developing component system, OEM (original equipment marketplace) emergence, and government incentives. Moving the needle on innovation, the electronics industry is further powered by technological advancements.
However, shorter product life cycles and a complex network of global suppliers and manufacturers cause disruptions in the supply of raw materials. Ultimately, it pushes back the entire supply chain, resulting in substantial delays in meeting the surging demand. This burgeoning landscape further understates the importance of a seamless supply chain network.
In the aftermath of these global supply disruptions, the emergence of online marketplaces serves as a pivotal tool for enhancing operational efficiency and meeting market discrepancies. The recent market stats underscore the sector’s immense potential as the growing market size is expected to reach $136.47 billion by 2026, as per the International Trade Administration. Since these online marketplaces offer accessibility and a new outlook by connecting manufacturers with global inventories, the electronics industry will soon boast more integrated, responsive, and efficient supply chains.
Streamlining procurement via centralised access
Before the advent of online marketplaces, the electronics and semiconductor industry players were forced to go through a complex procurement process. This typically involved sifting through multiple vendors to find the right components.
However, the emergence of online marketplaces allows businesses to efficiently compare and procure components. Providing centralised access to numerous suppliers and their products, online marketplaces reduce the time and complexity associated with the traditional process. Additionally, tech-backed marketplaces handle custom clearance and offer doorstep delivery, revolutionising the space.
Just-in-time inventory and demand forecasting
Online marketplaces leverage the power of AI and machine learning algorithms to address the disruptions in the raw material supply chain. The data-driven tools offer crucial insights concerning the demand, which enables manufacturers to stock up accordingly and seamlessly respond to any sort of market disruptions.
With access to real-time data on stock levels and lead times, businesses can minimise the risk of overstocking by ordering components as and when required, which helps facilitate just-in-time inventory systems and reduces the cost of holding large inventories.
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Supply chain resilience and diversification
In recent years, geopolitical tensions and the COVID-19 pandemic have left a gaping hole, affecting the global supply chain network. This creates a need for seismic reforms wherein online marketplaces emerge as a buffer for resilience amid global supply instabilities. The marketplaces offer businesses a diversified spectrum of sourcing options. Regardless of whether it is a pandemic-induced lockdown or geographical barriers, these platforms help businesses find alternative suppliers, mitigating the risk associated with supplier dependency.
The role of online marketplaces
Online marketplaces stand at the forefront of transforming supply chains in the electronics industry. Embedded with advanced technologies, these platforms have simplified procurement, enhanced inventory management, and opened the door to diversification. This has been instrumental in nurturing resilient supply chain practices.
Driving key sustainability initiatives
Online marketplaces facilitate several key functions for innovators focused on sustainability.
They enable innovators to obtain the necessary components for their projects efficiently and provide a platform to list/sell their eco-friendly products, thereby ensuring significant market exposure and access. These platforms allow innovators to present their sustainable technologies to a broad audience, enabling them to collect feedback and rapidly iterate on their offerings based on the insights gained from user interactions and platform-provided data analytics. This continuous feedback loop is crucial for fine-tuning products to align with market demands better.
A key advantage of marketplaces is their ability to consolidate demand, which helps innovators launch their products more quickly and cost-effectively, thereby enhancing the economic performance of manufacturers. Additionally, these platforms offer valuable insights into market trends and consumer preferences, allowing manufacturers to customise their products to better meet the demands of the market and increase their chances of commercial success.
As the industry heads for greater improvement, the presence of online marketplaces will escalate further, bringing forth new opportunities for innovation and efficiency in global supply chain management.
(Shashank Donthi is the CEO of Semikart.)
Edited by Kanishk Singh
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
