Sourcing ELECTRONICS Inventory Is everythIng
There are three solutions to supply-chain risk says Future Electronics' Nigel Field: inventory, inventory and inventory
Sometimes those in the supply chain can get wrapped up in the complexity of the issues, but in truth, there is one basic solution to lead-time, obsolescence and cashflow risks in the supply chain: it’s all about inventory, inventory and inventory.
For OEMs, new product
development raises particularly acute supply-chain issues. First, the introduction of new products necessitates the cancellation of older ones – this poses the risk of excess inventory going unused. The introduction of a new product gives rise to the opposite question: what if a long lead time for a single component compromises the OEM's ability to hit its target launch date or to ramp up production at the desired rate?
The answer is for OEMs and
distributors to work in partnership to ensure that inventory levelsmatch demand requirements. Of course, at the macro level distributors read the market and estimate demand for each component type. But at the micro level, individual OEMs will fare better if they trust their distributor with sensitivematerial requirement forecasts so that the distributor can build stock against known demand patterns.
Future Electronics operates an
advanced form of this partnership with customers in its bonded inventory management (BIM) programme, which guarantees inventory provision for manufacturing customers. Future Electronics maintains a buffer stock of a BIMcustomer’s materials, typically holding between 12 and 16 weeks of supply.
The key to the programme is
that this buffer is bonded – it is reserved exclusively for the use of one OEM. The effect for BIM customers is that their effective lead time for every bonded component is one week. This
HALL A4 STAND 259 Investing in your future.
has obvious benefits in terms of eliminating obsolescence, lead-time, capital and other risks.
www.futureelectronics.com
Highly automated warehouse equipment: 12 cranes each serving racks 18m high x 100m long ensure Future Electronics’ shipments to European customers are fast and accurate.
Delivering the right electronic components to the right location, at the right time, with zero errors and zero defects.
This is the goal that has driven Future Electronics’ largest ever investment in the future of European manufacturing: the new €40m EMEA Distribution Centre (EMEA DC) in Leipzig, Germany. The facility has been fully operational since June 2010.
Benefiting from the world’s most advanced warehouse automation equipment, rigorous quality control procedures, and close proximity to sophisticated air,
road and rail hubs, the EMEA DC leads the world in its speed, accuracy and responsiveness of service. Cut-off ordering deadlines for next-day delivery in Europe are later than ever.
You can sample the EMEA DC’s service for yourself today – simply contact your nearest branch of Future Electronics or find us at
www.futureelectronics.com.
Future Electronics’ EMEA Distribution Centre: Key Facts • 15,000m2
Future Electronics’ EMEA Distribution Centre – Leipzig
• Capacity to stock >100,000 separate items (part numbers) • Handles >6,000 customer shipments/day • Temperature- and humidity-controlled environment • Fail-safe operation – redundant power, road and data systems available • Full ISO9001/14001, AS1920, ANSI ESD 20.20 and C-TPAT certifications
building WIN A PORSCHE DRIVING EXPERIENCE AND VIP VISIT TO THE EMEA DC
Learn more about the new EMEA DC and Future Electronics’ supply chain services by visiting our stand at Electronica 2010 in Munich, Hall A4 stand 259. Apply for a free Electronica pass and enter a draw for one of three VIP visits to the EMEA DC and to the Porsche Driving Experience, both in Leipzig, Germany. To apply, e-mail your contact details to:
info-eur-future@futureelectronics.com.
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