The promise of a fully digital supply chain in the electronics industry is compelling—faster, more efficient, and smarter decision-making. Yet, despite these advantages, the reality of digital supply chain adoption has not lived up to expectations. The challenges are clear: integrating different IT systems, data quality issues, resistance from partners, and the daily demands of running a business have all contributed to a slower-than-expected digital transformation.
The Struggle for Digitalization
As Richard Barnett, CMO of Supplyframe, puts it, “We are not making enough progress.” The reasons behind this lag are complex. Organizational change, shifting strategies, and the chaos caused by unforeseen global events like the pandemic have all taken priority over long-term digital transformation goals. When companies are scrambling to secure parts during a crisis, focusing on future digital supply chain innovation is understandably sidelined.
A key issue, according to Gartner, is that the data available for decision-making isn’t always effective. In fact, 80% of the supply chain isn’t captured in current digital decision models, meaning that companies may make more bad decisions by relying too heavily on these digital tools. Experts argue that a “good” decision should not only meet expectations for supply chain performance but also account for broader, more complex dynamics in a supply chain ecosystem.
Why Digital Supply Chain Efforts Aren’t Delivering
The problem isn’t necessarily the technology itself—it’s the incomplete picture that digital tools paint. Gartner found that the data these tools collect often misses up to 80% of on-the-ground processes. This gap in data visibility makes it difficult to make truly informed decisions, especially when companies are focusing too heavily on internal enterprise data, like customer history and compliance records, instead of capturing relevant supply chain insights from the broader ecosystem.
As Barnett from Supplyframe explains, “Millions of dollars are spent to optimize enterprise domains, but the reality is that supply chain performance is shaped by what happens across your entire ecosystem—suppliers, customers, and beyond.”
Data Quality: The Hidden Bottleneck
One of the biggest barriers to effective procurement and supply chain decision-making is the lack of reliable, accessible supplier data. According to Ivalua’s procurement survey, only 30% of respondents felt “very confident” in the quality and availability of their supplier data. This makes it harder to make fast, informed decisions and impedes efforts to tackle issues like rising costs and inflation.
This lack of clarity is especially problematic when working in a shared data ecosystem. In the electronics sector, distributors are customers of component manufacturers and suppliers to OEMs and EMS providers. Standardizing data across the supply chain is a significant challenge.
The Data Disharmony Dilemma
Data disharmony is a major issue in digital supply chain efforts. As Oren Manor from Siemens Digital Industries Software explains, “When you have different machines, processes, and protocols, you need to standardize and harmonize the data. Otherwise, you’ll find gaps and inconsistencies.”
For example, different parties may record the same data in different formats, leading to discrepancies and errors. As Glen Tan, Senior VP of Operations at EMS provider Flex, points out, “You’re dealing with data that is often not harmonized. You might see three variations of one person’s name—Glen Tan, G. Tan, Glen T. It’s a small detail, but it eats up valuable time and resources.”
The Disparity Between Large and Small Companies
The implementation of digital supply chain systems also varies widely by company size. Larger companies have made significant strides in digitalization, while small- and medium-sized manufacturers are struggling to keep up. Dr. Martin Jun, a mechanical engineering professor at Purdue University, notes that collective efforts are needed to support smaller companies who lack the resources to invest in digital transformation on their own.
Making Digitalization Worthwhile
Despite the challenges, the investment in digital supply chain tools continues to grow. However, for these efforts to pay off, they must be strategic, focusing on closing the data gaps and ensuring that the tools are capturing the right information—across the entire supply chain ecosystem.
How Lotus Tech Can Help
At Lotus Tech, we understand the complexities of managing a digital supply chain in today’s fast-moving electronics industry. With years of experience in the global market and strong relationships with trusted suppliers, we’re committed to providing you with real-time access to high-quality, reliable data and procurement solutions. Whether you’re facing challenges with data harmonization, supplier transparency, or procurement flexibility, our team is here to help streamline your processes and improve your decision-making.
Get in Touch Today
Want to learn more about how we can help optimize your supply chain? Contact us today at WhatsApp: +65-9351-8090 or via email at lotusscitech@outlook.com. Let’s discuss how we can work together to transform your supply chain into a competitive advantage.
About the Author
This article was written by Grace Hu, an expert in supply chain solutions at Lotus Tech. Originally published on Lotus Tech’s Website.
