Technology Week – Day 1
Inside the Subsectors: PCs & Notebooks and EMS
Cloud computing, takeovers, and consumers who want it all now: that is life in the world of PCs & notebook computers. For their part, EMS (electronic manufacturing services) companies face the challenge of increasing cost pressure and are thus looking for more efficient ways to manufacture technology products.
Things change very fast in this subsector and companies shift their business focus amazingly quickly. More and more, companies are moving away from what we thought was their core competency and into other areas as demand evolves. One driver is certainly cloud computing, which will impact functionality of devices. There are big changes underway right now in the way software is distributed, too.
Technology Week – Day 1
Inside the Subsectors: PCs & Notebooks and EMS
Leading PC & notebook companies share the vision that consumers can use software on demand. That means instant access to everything, wherever they are.
In terms of what these changes mean for logistics, DHL has traditionally been strong in shipping materials and finished goods through our network using air freight or ocean freight. Time to market is essential in this subsector, so direct distribution solutions are high on the supply chain agenda.
We have also created regional gateways for customers, where we ship goods in bulk, then separate them for their different destinations and further distribute them to final customers. That cuts transit times and improves CO2 efficiency.
Technology Week – Day 1
Inside the Subsectors: PCs & Notebooks and EMS
We’re also seeing changes in terms of production locations. Within China, manufacturing companies are moving west. But no one knows how long the wage arbitrage in China will last. So, more and more technology goods are being manufactured in Mexico and Eastern Europe. Of course there are challenges in the emerging markets, like customs regulations and security issues, but DHL is well placed to help customers with end-to-end supply chain solutions there.
We also provide these customers spare parts logistics (SPL) services and are growing these capabilities, including providing repair services. In sum, our PC & notebook customers are moving fast, and they need a supply chain partner that is just as fast and responsive.
