Electronics Production | September 11, 2009
Tip 3: What’s the Real Deal? Score your suppliers on inventory control
One of the many risks of purchasing from the grey, or “secondary,” market is the risk that the parts you purchased will not arrive on time. The broker claims to have the parts available, you place your order, and…nothing.
The broker might claim there are some delays with his overseas warehouse, perhaps there are some holdups in customs, or sometimes a botched delivery. At the end of the day they all amount to little more than the supply chain equivalent of “the dog ate my homework.” While this failure can have many potential causes, the most frequent one is that the supplier never really had the parts in the first place. With enough time spent in the grey market, any buyer will get stung, but there are ways to protect against this frustrating practice. Shortage buyers can turn to one of several sources to find the parts they need to keep the assembly lines moving smoothly. To deliver this level of confidence, suppliers should meet a list of minimum requirements: - Be fully transparent in their dealings with buyers: not just on issues like pricing or item pedigree, but on operational issues like warehouse types, inventory audits, data freshness and inventory confirmations. To a shortage buyer looking for quick answers, a quick “sorry, no stock” is far preferable to false promises of an impending shipment. - The inventory should be in-stock in a world-class warehouse facility managed by professionals with no financial stake in closing the order. Inventory lists would be fresh and the data would be ensured accurate by an independent contact. Does the supplier share their process with you? Does the supplier ask you to take their word, or is there someone who independently confirms the inventory is physically present? Potential Sources and the Shortage Buyer Authorized Channels: It should go without saying, but many buyers still fail to check their authorized channels when given a shortage to fill. Searching alternate part numbers can find stock that would not otherwise show up at a particular distributor. Since component manufacturers and franchised distributors have the best mechanisms for fulfilling orders out there, buyers should still go here first. Marketplaces: An extension of the primary market, a fully operational marketplace will have controls equivalent to a franchised distributor. Warranties may not pass through with every order, and there are some technical challenges to bringing together dozens of suppliers, but a proper marketplace will handle data integrity, order fulfillment and payment processing. Pay attention to their policies on inventory handling — not all firms are created equal. Bulletins: Basically a “list of lists,” these sites will combine the inventory reports from several suppliers without a quality check of the data or determination of whether the parts listed are even physically present. Many will present themselves as some kind of full service provider but will lack the network of systems and processes needed to ensure secure fulfillment. These bulletin boards are good for the first step of the search, but buyers should be wary of any who promise more than they can deliver. Read the fine print. Independent Distributors: In recent years, the leading independents have made major investments in their warehousing capabilities. Anecdotal evidence suggests, however, that only 15-20 percent of revenue comes from orders where the parts are already in stock, limiting the total amount of protection buyers can expect when sourcing from independents. The other 80 percent of the time, independents are just brokering orders and are exposed to the delays and holdups of using “available” inventory from “overseas suppliers.” Brokers: Brokers do not carry stock. A buyer asks them to find parts, and that is what they do best. With a buyer lined up, they will search high and low to find someone — anyone — with the parts the buyer needs. The better ones will volunteer stock-checks and confirmations, but too many will just process the order and try to find the right parts after they have a PO in hand. Smart buyers instinctively know there are levels of trust and capability in the shortage market. Purchasing departments should measure suppliers for their transparency of information, the maturity of their operations, the level of control over the parts they list, and their responsiveness of communication. All of this work needs to happen early and be updated a couple of times a year. When the shortage happens, it’s too late to build confidence. ----- Author: John P. Brown is co-founder and VP of Marketing and Strategy at Verical
Celestica to manufacture ventilators for the Canadian market EMS provider Celestica has won a program to build 7,500 ventilators for StarFish Medical Inc., a Canadian medical device company, at Celestica’s operation in Newmarket, Ontario.
Ouman Estonia starts an expansion project Despite the current uncertain economical environment, Ouman says it believes in a brighter future and that the company is proud of the performance in its factories.
Reshaping production post COVID-19 As manufacturers re-open after COVID-19 related lockdowns, economic and supply chain disruptions may be felt beyond 2020. How companies shift in the short-term and plan for the long-term will be factors in defining “new normal” for the component industry.
Swedish EG Electronics acquires WEAB EG Electronics AB, a KAMIC Group company, has acquired all the shares in WEAB, Wermlands Elektronik AB.
ZF completes its acquisition of WABCO ZF Friedrichshafen AG has successfully completed the acquisition of commercial vehicle technology supplier WABCO, having gained approval from all required regulatory authorities.
Romanian EMS provider expands as it relocates Romanian EMS-Electra has successfully finalised the process of relocating to a new building, in the industrial area of Iasi, Romania.
Circuit Check partners with major healthcare company to build ventilators In early March, when a long-standing customer to the company, a major healthcare company approached Circuit Check to partner together to build over a dozen tests systems to assist in the COVID-19 efforts, Circuit Check responded quickly to the challenge.
TI maintains firm grip as world's top analog IC supplier TI's 2019 analog marketshare grew to 19% and ST climbed to fourth place as the top-10 suppliers collectively accounted for 62% of total analog sales.
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.Load more news
- China falls far short of its "Made-in-China 2025" goal
- Raspberry Pi audio HAT board with MERUS class D multilevel amplifier
- ASML ships first-generation multibeam inspection system ‘eScan1000’
- Romanian EMS provider expands as it relocates
- Gémosz is still looking to grow – but the pandemic brought new perspectives