Supply Chain Mechanism in Semiconductor Industry

What is Supply Chain?

Supply chain management is the management of flow of goods and services from the procurement of raw material to producing the final product. Supply chain is an important mechanism in almost every industry as it determines the competitive advantage of a company over its competitors. Supply chain management also plays a key role in the semiconductor industry. Semiconductors are a key component for almost every electronic and digital product in today’s modern era. Thus optimum supply chain for semiconductors is a need of today. Not only proper supply chain mechanism is needed for semiconductors but also for the semiconductor machine as these machines play a key role in the manufacturing, assembling and testing of semiconductor chips. 



Nature of Logistics in Semiconductor Industry:

Very few industries face such complex issues in logistics management which are faced by the semiconductor industry. As semiconductors are quite fragile in nature and their efficiency depends on how intact and protected they are, their packaging, storage, distribution and transportation should be carried out with extreme care. Whether it is supply flow of semiconductor wafers, semiconductor chips or semiconductor machines, utmost care is taken for designing supply mechanisms to keep the integrity of materials intact. For such efficient logistic and supply chain mechanisms, the semiconductor industry seeks advanced and specialized technologies which can avoid any unwanted situations.

Semiconductor Supply Chain Management:

Cost efficiency and supply chain optimization are the key logistics needs of the semiconductor supply chain. These supply chains include various tools and components such as Cleanroom equipment, Spare part logistics, Fab parts logistics, warehouse management, Semiconductor machines and tools, etc. Achieving maximum efficiency,consistent competitive advantage to companies by collaborating with manufacturers, suppliers, and customers is the key objective of semiconductor supply chain management. Semiconductor supply chain management also focuses on providing comprehensive logistic solutions to semiconductor companies.

Proper warehouse management is very important in the semiconductor industry to keep the integrity of semiconductors intact. For this purpose various techniques, methods and tools are used such as climate controlled warehouses, customized labelling, efficient distribution system and using modern inventory methods.

Summary:

Semiconductor is witnessing tremendous growth from the past many years. This makes the role of supply chain mechanism even more important for the industry. Efficient supply chain management will not only benefit the semiconductor industry but it will also benefit the various external stakeholders of the industry by providing them long term benefits. Thus, every semiconductor company should focus on using and implementing logistics solutions which covers the entire semiconductor value chain from inbound logistics to manufacturing of semiconductors.

 

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