Why electronics manufacturers need a solutions provider to gain global market access
All stakeholders in the electronics supply chain - from manufacturers and importers to retailers and traders - are seeking to bring their electrical and electronic products to the global market. In doing so, they face tremendous challenges in managing compliance with technical regulations while maintaining profit margins.
Challenges in the global electronics industry
Here are some of the major industry-wide hurdles original equipment manufacturers and vendors in the global electronics supply chain face today:
Short product life- and development cycles. The pace of innovation in the electronics industry is rapid. This means that manufacturers must constantly change their processes and source new materials to keep up with the rate of technological change. These new materials, components and processes must be compliant with international quality and safety standards.
Thin profit margins. The declining costs of finished products, along with the high number of competitors in the global electronics market leaves OEMs with razor-thin profit margins.
Rigorous quality standards. Electronic products and all of their components and subassemblies must meet local electrical safety standards as well as any other applicable standards. This extends not just to the integrity of the products, but also to the internal processes of everyone in the value chain.
Lack of harmonized international standards. Moving into global markets is often difficult because each country has its own set of standards that may be very different from other locales. What's acceptable in one country may be out of compliance in another.
How a technical solutions provider can help
As global markets continue to develop and products get less expensive, the demand for electronics will grow. Businesses that want to stay competitive will need to bring new products to these markets as fast as possible. Reducing costs and time to market is often opposed by pricing pressure and timelines for design, testing and certification all being compressed in response to market demands. It's vital for electronics OEMs to instill confidence in importers, retailers and end users to demonstrate that the products are safe, reliable and market compliant.
A technical solutions provider can help by acting as a partner in optimal decision-making, providing research and regulatory know-how that can give electronics OEMs and component part vendors an edge in this competitive field. Here is what a provider can offer to a business looking to gain access to international markets:
Reduction of costs and time to market through testing. A good solutions provider will be able to conduct one test for an entire family of products, rather than a separate test for each product and local set of standards. This test should account for differences between jurisdictions, saving time and money.
Knowledge and research. Many electronics OEMs lack the internal resources to keep up with an ever-evolving array of national and international standards. A trusted partner is dedicated to maintaining an up-to-date knowledge of this information, so manufacturers will know exactly what they need to do.
Interface with regulatory bodies. OEMs should look for a technical solutions partner that will interact with local, national and international regulatory bodies in their place. This eliminates the cost that the OEM would incur if it maintained an internal compliance
Tailored solutions. The electronics industry is far-ranging and includes many different product classes. Thus, a provider shouldn't force its clients into a one-size-fits-all solution. OEMs should look for a partner that will work closely with them and tailor a custom strategy for their specific needs.
ISO registration. In some countries, conformance to ISO standards is a prerequisite to doing business. The ability to adhere to internationally recognized quality standards is a major competitive advantage. A technical solutions provider will offer auditing and registration services.
To learn how a technical solutions provider can help your business achieve global market access, please see our Global Market Access page for more information.