Linxens

What are some of the challenges and trends impacting the manufacturing industry lately?

One of the largest producers of flexible circuits worldwide, Linxens is based in Singapore. We have enormous manufacturing capacity ~ 8Bpcs However, the COVID-19 pandemic has caused a significant disruption in the global supply chain, impacting businesses across the world.

Before COVID-19, the manufacturing industry was relatively stable, with China serving as a major manufacturing hub and countries in Europe and the U.S. enjoying peace. However, the situation changed drastically after the pandemic hit. The conflict between Ukraine and Russia, the Suez Canal blockage, and COVID-19 have caused significant supply chain disruptions in bringing raw materials to manufacturers.

As a manufacturer of niche products, we import high-quality materials from various parts of the world by air or sea. However, due to supply chain disruptions, our ability to import materials has been hampered. Additionally, we face the challenge of delivering our products to clients located around the world, including the U.S., Europe, China, and India, as we are the leading supplier in this industry.

Linxens Singapore employs people from nearby countries such as Malaysia, China, and Thailand. However, due to COVID-19, the ongoing war, and supply disruptions, manufacturing employees who come from overseas face significant inflation and other difficulties when living in Singapore, which has led to attrition.

In summary, the challenges faced by manufacturing companies after COVID-19 include supply chain disruption, retaining employees who can continue to work within the Asian context, and increased manufacturing costs. Due to supply chain disruptions, the cost of manufacturing has increased significantly , which includes energy price increases, raw material price erosion due to logistics, freight cost increase, and import-export costs. The combination of these factors, along with inflation, has added to the cost of running a business.

Would you please delve into how you helping customers address supply chain disruptions?

We put the customer at the heart of our priorities. To do this, we use customer information tools to better understand market expectations. These tools help us collect data, but they do not necessarily provide insight into how well we are able to listen to our customers' needs and market trends. Despite having a forecast, market fluctuations have created uncertainty among our clients, resulting in a loss of visibility throughout the entire supply chain.

To mitigate this, we strive to be as close to our customers as possible and discuss the business aspect of each business function, including quality, sales, and supply chain. By doing so, we can obtain the appropriate degree of information instantly on top of the technologies we implement. This allows us to better understand the market, anticipate slowdowns or ramp-ups, and gather resources on how we conduct business.

Post-COVID, our focus has been on the client through a variety of functions to satisfy them in a more effective manner. We understand the importance of keeping a closer eye on market trends and the need to be even more attentive to the needs of our customers in order to plan for the future and ensure the success of our company. Despite having supply chain tools and business processes, we are convinced it is essential to pay attention to our customers and gain insight into the market to remain competitive and meet their expectations.

Could you talk about the emerging trends in the industry?

To cope with the challenges of employee retention and supply chain disruptions, technological advancements have become a necessity. Inflation, geopolitical instability, and the evolving needs of the current generation of workers require organizations to embrace technology to handle these challenges. Lean manufacturing is a major focus in Singapore, but it has its limitations in retaining skilled workers. To attract and retain the younger generation of knowledge workers, we have embraced the concept of the smart factory, also known as Industry 4.0.

Smart factories are equipped with a range of technologies such as Enterprise Resource Planning (ERP), Supervisory Control and Data Acquisition (SCADA), Manufacturing Execution Systems (MES), and sensors that enable us to collect data on the production process. By analyzing this data in an easy-to-understand manner, we can make better decisions to improve productivity and retain employees.

In addition to smart factories, cutting-edge manufacturing techniques like big data analytics and 3D printing have also become essential to make the production process more efficient. Machines built today are designed with sensors, automated machine vision, and predictive capabilities. These advanced technologies allow us to identify flaws in real-time, reduce reject rates, and increase efficiency.

Our company recognizes the importance of environmental responsibility and the expectations of our clients, future recruits, and society. We are committed to reducing our carbon footprint and promoting sustainability through various projects. As one of the largest energy consumers in Singapore, we are particularly concerned about rising energy costs and their impact on our business. To address this challenge, we are exploring the use of solar systems in our factories, which is one of the steps we are taking towards reducing our carbon footprint and conserving energy effectively. We recognize that there is still much work to be done, but we are dedicated to finding innovative solutions and making progress towards a more sustainable future.

At the same time, we also strive to use green products and raw materials in our factory and follow the reduce-reuse-recycle philosophy to minimize waste. In conclusion, we believe that technology is a key enabler to help us overcome the challenges faced in the manufacturing industry and create a more sustainable future.

Is there any advice that you'd like to give out to your peers in the sector?

Maintaining close ties with clients is crucial in the face of persistent supply chain disruptions. The biggest challenge that businesses currently face is maintaining forecast accuracy. If the prediction accuracy varies too widely, there is no way to predict when a product or service can be brought back to the customer. In such a complex world, going a step closer to the customer is the only feasible solution. While one-to-one actions can lead to previous costs, CIOs should attempt to take as many steps as possible towards new manufacturing technologies and sustainable initiatives that can help stabilize cost and price erosion.

However, without a strong team, none of these actions are possible. Our professional team's agility helped us keep our facility open throughout the COVID pandemic, without a single day of shutdown, to serve our customers. The team takes a forward-thinking approach by planning ahead and anticipating customer needs. As a result, we have been able to maintain a global supply network, which is essential for our business.

I express my gratitude to my team for their assistance during these trying times and to the government for allowing our business to continue operating during the pandemic. Despite the challenges we face, we must remain committed to serving our customers and adapting to the changing circumstances. By working together and leveraging new technologies and sustainable practices, we can build a more resilient and agile supply chain that can better withstand disruptions in the future.