Over half of the Philippine’s industrial sector is in manufacturing and the industry contributes to almost a quarter of the country’s gross domestic product.
The industry also promotes stronger inter-industry and inter-sectoral linkages, productivity, technological development and innovation. Keeping all these factors in mind, the Philippines is fast-forwarding the manufacturing industry’s pace toward a more sustainable and inclusive development in the country.
In order to remain competitive, process manufacturers are expected to streamline operations and costs, drive supply chain efficiency, increase employee productivity, maintain supplier relationships and eventually build, and maintain customer loyalty. Moreover, semiconductor and electronics manufacturers are looking to move up the value chain and diversify their offerings.
The pandemic has accelerated the growth of digitalization and adoption of innovative methods of manufacturing and procurement to realize these opportunities.
Manufacturers can enhance production efficiency by automating manufacturing processes by incorporating smart manufacturing technologies such as the Internet of Things, 5G, Artificial Intelligence (AI) and Machine Learning. Implementing preventive maintenance and the use of smart technologies to automate and streamline processes will allow employees to focus on higher-value tasks and achieve consistent quality among products.
Investing in QC for safety in process manufacturing
From online ordering, through manufacturing or process automation, to analysis of big data and the use of AI to help predict trends, digitalization has become a critical element in any organization. It can help companies make better decisions in a timely manner. It gives them more visibility into operations and allows them to be more agile and react faster. Inconsistencies and deviations in processes and products could pose serious health risks and consequences for people and for the plant, too. Therefore, checking and double-checking for product inconsistencies is an important part of quality control management. Investing in solid quality control measures, such as the use of sensors to scan and monitor output, ensures customers are provided the products they expect. Having reliable access to components and tools also helps factories adhere to their maintenance schedule, to keep machines and systems in good condition.
The Philippines has positioned itself as a reliable hub for semiconductors and electronics manufacturing due to its cost competitiveness, proximity to Asian producers of finished goods and English language proficiency.
Although neighboring countries have proven their efficiency in terms of manufacturing costs, labor and operations, the Philippines is still considered a region with plenty to offer. The Philippine roadmap seeks to move the country up the value chain, identify new growth areas and increase exports and competitiveness. By enhancing the design and research & development capabilities of local firms, we can move from low-value activities like testing, assembly, and packing, and explore value-adding growth areas.
Building a trusted supply chain system
Timely and reliable access to critical technologies and information will be a key enabler for manufacturers, especially for firms that may not have in-house digital, supply chain or procurement expertise. Partnering with players in global distribution networks, who can offer access to products and technologies, and trend forecasts, gives local firms better visibility and understanding of global trends and where manufacturers can establish a niche. The pandemic has exposed how fragile supply chains have become and there has been an increase in adopting solutions to strengthen supply chains and diversify by sourcing from multiple locations. It has also brought forward the importance of future-proofing supply chain practices and engaging with trustworthy suppliers with inventory capabilities and reliable access to a broad range of products. Businesses can consider strategic partnerships with distributors who can help make their supply chain more resilient. Global suppliers have the scale and network to offer additional and extended procurement services and solutions that smaller firms may not be able to provide. This includes e-commerce solutions that can standardize, simplify and speed up procurement and purchasing processes and sourcing support that give firms visibility into products that may not be published on the website yet.
This also provides them with cost-effective alternative options for their project without foregoing quality or compliance requirements. Moreover, e-solutions reduce transactional costs for the whole procure-to-pay process, as well as reduce data entry and invoicing errors, especially for those with complex industrial projects or high-volume requirements.
Ordering process
At RS Components, we provide F&B, semiconductor and electronics manufacturing customers with e-commerce and procurement services that simplify and speed up the ordering process online. These e-solutions give firms access to over 500,000 products across the industrial and electronics ranges, that will help them adhere to maintenance schedules and keep the business running smoothly. With access to technical information and a wide product range, businesses also gain visibility of global technological trends and contribute to local innovation.
These solutions provide customers direct access to the portfolio and product details which in turn helps businesses innovate, identify trends and adopt smart technologies. An example is a free web order management solution that gives purchasing managers more visibility of orders placed and more control over the buying process and spend. This can be tailored or expanded into a fully integrated solution, based on business requirements.
A strong digital strategy and robust supply chain will significantly allow businesses to overcome manufacturing challenges. As customers embrace digital connectivity and e-commerce, there has been a rise in demand for value-added procurement services. A cohesive digital infrastructure and data analysis tools will allow businesses to adapt swiftly to new working conditions, varying customer demands, bulk ordering and changes in buying habits. —BY GEORGE SANTIAGO
The author is Country General Manager for the Philippines of RS Components.
