Suppliers must get an edge in the new economic landscape

Hardware, fasteners, and hand tools sectors are among the top exporters in Taiwan, delivering quality products to various global markets promptly thanks to their competitive edge of operating under an industry hub model.

Managing lead times and delivery expectations have become crucial under disrupted supply chains. Prices for raw materials and energy have risen as prolonged global events like the Ukrainian-Russian war continue to hamper the recovery progress of the economy.

Therefore, technologies that can streamline manufacturing processes have grown in value. In recent years, even before the COVID-19 pandemic that brought the discussion regarding supply chains to the masses, Taiwanese suppliers have already kicked off further digitalization of their factories. An example would be Rei-Dai Precision Tool, a big-name hand tool brand in Taiwan, which began fitting smart capabilities into its factories to optimize and improve production quality. Heading into the pandemic, the company's smart factories enabled it to sidestep the initial supply chain chaos. Now, more companies are looking at similar solutions with shortened supply chains, increased focus on strengthening resiliency, and assessments of streamlining production to lessen the company's carbon impact on the environment.

Implementing new technologies into these traditional sectors requires cross-industry collaboration to integrate platforms successfully. Late August saw the Intelligent Asia 2022 mega show open at Taipei Nangang Exhibition Center Hall 2, with events like Automation Taipei and Laser & Photonics Taiwan showcasing new technologies that can help hardware suppliers' production capacity.

Companies across sectors are fully aware of the many challenges in the current economy. In the past, most suppliers would consider maintaining automated hardware enough to service clients; however, nowadays, smart machinery and factory solution providers say owning equipment is no longer quite enough. They cite that integrating software into the equation is now the norm and an expected solution among global clients. As a result, there are more suppliers than ever at the Intelligent Asia mega show offering a comprehensive solution combining both equipment and smart machinery-focused software.

Revamping existing factory planning and production chains are not easy tasks or inexpensive projects to carry out. Luckily, over the years, we have seen a rise in these equipment and software-integrated solution providers. As a result, suppliers will be able to have greater access to a diverse catalog of solutions to choose from.