Electronics Supply Chain Management
For the typical electronics product, purchased components account for 70%-90% of direct costs. Companies with low- to mid-volume electronics must keep their inventory levels low to minimize risk and overhead, yet be always prepared for the next order.
OCM Manufacturing’s customers use our electronics supply chain management (SCM) expertise to receive high quality services without high inventory risk. This is possible due to our unique business model and exceptional supplier relationships, which allow us to obtain materials within days. Maintaining a good supplier relationship is an important part of any business that relies on third-party vendors. This includes making sure that the suppliers you choose are reliable and trustworthy. To help your business maintain a good working relationship with suppliers, companies similar to Aravo provide support with a vendor based risk management process that could help your business assess the performance of your third-party vendors. If you’re interested in such a service you can visit the site – https://www.aravo.com/capabilities/vendor-performance-management/.
OCM reduces your risk with:
- Reduced material costs. Up to 25% lower net material procurement costs than what most companies can achieve on their own. And, our pricing levels are as much as 15% lower than other contract manufacturers.
- Superior delivery. Exceptional relationships with dependable suppliers allow us to provide a level of delivery performance few other contract manufacturers serving low- to mid-volume electronic vendors can match.
- Reduced “end-of-life” liability. OCM can reduce your end-of-life inventory costs by redeploying inventories to other products. In addition, our early adoption of a lead (Pb) free program is partly designed to minimize or eliminate stranded inventory for our customers.
Companies taking advantage of our SCM services also enjoy:
- An experienced buying group. Through our experienced and trained SCM group, our customers leverage established supplier relationships and negotiating experience.
- Relationships with strategic suppliers. We work with a select group of proven suppliers with whom we develop the deep relationships needed to produce unique levels of value for our customers.
- Advanced materials requirements planning (MRP). OCM customers benefit from procurement efficiency. Our leading MRP II software system helps ensure required materials arrive on time to meet delivery commitments. It also minimizes transaction costs and inventory liability.
- Minimum inventories. Our supplier agreements, contracts and bonded inventory minimize our customers’ inventory liability.
- Economies of scale. No matter what their volumes, our customers benefit from the economies of scale that SCM services provide. In addition, for many customers, full or partial sourcing from Asia is the best way to minimize costs. We have established a unique sourcing program that allows producers of low- to mid-volume electronics to benefit from these economies of scale.
Source With Us
Please contact us to discuss your electronics supply chain management, inventory, and electronics manufacturing needs.
- Designing to Reduce Inventory Costs: a DFM Tip from OCM Manufacturing
- Consignment vs. Turnkey Manufacturing – Cost-Benefit Analysis (PDF): An OCM Manufacturing short paper
- Guarding Against Materials Shortages (PDF): An OCM Manufacturing short paper