Wholesale Suppliers & Manufacturers Welcome Year of Dragon
As the Lunar Year has already turned from the year of the Rabbit to the Year of the Black Water Dragon, and the main nationwide Spring Festival Holiday is closing up and people start returning to their workplaces, also the wholesale suppliers and OEM electronics manufacturers in China are about to resume production and return to their business and workplaces as usual.
Let's use this time to take a reflective look back on the year behind us, while also discuss what we at MemoTrek™ believe is needed to sustain a successful wholesale electronics business in 2012.
The year 2011 has certainly been an eventful year that brought lots of action, many new and innovative product trends and also shifting market segments to the wholesale electronics industry and the electronics OEM manufacturing base in Shenzhen and the Pearl River Delta.
These are certainly interesting times that we are currently experiencing.
Retrospectively looking back on the year 2011, when the catastrophic events in Japan disrupted some of the core supply chains in Asia while most of the Japanese manufacturing structures still showing redundant enough to recover fairly quickly through alternate supply chains and re-routing of manufacturing capacities, we think it is safe to also assume that the year 2012 may turn out to stand out as an even more turbulent year in history of global wholesale electronics supply, OEM manufacturing and upstream wholesale electronics trade.
Another important factor during the latter half of 2011 and that had some serious impact on the global wholesale electronics supply chain where the floods in Thailand. Among the HDD manufacturers that have chosen Thailand as their core manufacturing base are Western Digital, Seagate Technology, Hitachi Global Storage Technology and also Toshiba, who all have their manufacturing plants for HDD computer hard drives in Thailand and of whom some produce main parts of their global HDD output there.
As the impact of the floods kept rapidly growing during the second half of 2011, it quite soon became clear that in addition to experiencing component shortages because of delivery fallouts from sub-suppliers, the synergies of other external and partly highly disrupting effects that resulted of frequent power-cuts, general transportation and logistic issues as well as literal flooding of plants quickly affected manufacturing output significantly enough to impact worldwide distribution channels and thrive prices on the global market drastically.
Western Digital, a main player in the computer hard drive industry and of the largest HDD manufacturers produced more than 65% of its HDDs in Thailand. Western Digital released a statement indicating that its HDD production is currently shut down and would be significantly constrained during the current December quarter.
Showing clearly the disadvantage of relying too much on monocultural manufacturing strategies, the heavy floods in Thailand has quickly lead to an significant global price increase of between 20% to more than 50% for conventional HDD computer hard drives used for most of both PC's and servers.
While this effect has also lead to bigger demand for NAND flash memory and SSD storage solutions, this massive price increase and it’s disruptive effects have also had some other positive side effects on the wholesale electronics supply chain and its main players:
This drastic price increase for conventional HDD storage memory and disk space throughout the last two quarters of 2011 has helped the manufacturing supply chains, OEM manufacturers and other upstream parts of the global wholesale electronics supply chain to realize the importance of redundancy and risk spreading.
Building and sustaining reliable B2B supplier pools based on divers clusters of highly interconnected manufacturing plants ultimately lead to strong and stable supply chain links, certainly a demanding task in today’s rapidly changing business surroundings.
Polycultural OEM manufacturing clusters spread out in various geographical regions and with diversified while at the same time highly localized manufacturing processes may indeed manage to implement a certain stabilizing level of redundancy with the main supply chain, and by integrating core sub-suppliers into this strategy a high level of independent and autonomous manufacturing can be reached, making it necessary to focus on reaction speeds and flexibility in joint-operations between the various manufacturing entities.
Even though implementing such a polycultural supply chain solution may seem like a complex task that’s easier completed by large scale cooperations with sufficient resources available to successfully cluster their manufacturing into internationally acting cross-border operations while at the same time building strongly localized supply networks and sales channels on all continents and in all major countries and cities, many of the same measures and methods can after slight modifications also be used by SMEs, technology startups and other e-commerce enterprises.
We at MemoTrek™ take pride in continuously improving our relationships with core suppliers from various geographical locations and within different industries and diverse manufacturing capabilities and in order to be able to guarantee our customers a stable source of high-quality wholesale electronics to some of the best value conditions that today's market has to offer. Purchase your wholesale electronics directly from some of the same and leading OEM manufacturers that also produce for the "Big Guys" so that you can ensure to help your customers benefit from the additional values that you gain by going factory direct. Contact us today for more!