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PCB Sourcing


Surviving Supply chain evolution


Partnering with a PCB broker is the best way to navigate changing technologies, political factors and cost down pressure, advises ALR Services' Jo Saltman


Historically, themajority of OEMs have sourced their printed circuit boards directly fromthe PCBmanufacturer. This is no longer the case, however, due to a stormof political factors, changing technologies and increased pressure on OEMpurchasing teams regarding cost down and supplier reduction programmes. Instead, partnering with a professional PCB broker, such as ALR Services, has become the preferred option. Here we look at the reasons for this change in themarket and analyse the business model it has created.


One of themost important things to bear inmind when buying


any bespoke electronic component, and particularly a PCB, is that the true cost of the itemis not just its price. You have to factor in other variables such as the quality and reliability of the PCB, coupled with the flexibility of timescales available. As a supplier, ALR Services needs to take these things into consideration on behalf of customers, while remaining cost effective.


identify needs


In tailoring the supply chain tomeet our customer’s requirements, wemust first establish their individual needs. Inevitably, every customer is different within a certain range of predetermined criteria. As a result, the PCB supplier’s infrastructure has to be ready tomeet that range of demands. For instance, ALR offers consignment, Kanban and buffer stock options. Equally, on regular orders, we like to be able to remain flexible with our delivery times. If the customer needs something urgently, delivery can take as little as 24 hours.


Again, this is about taking a step away fromtraditional 28 | September 2011


brokering and a step towards becoming part of our customer’s bespoke purchasing system. Having said that, delivery is not the only issue we need to take into account. Design is also a key concern and the fundamental question here is ‘can the PCB supplier provide what the customer needs?’


Find the best fit


Particular PCBmanufacturers bring their own specialities to the party and, whilemany willmanufacture products outside their specialist area, the associated cost will be higher. For instance, if you are tied to onemanufacturer that specialises inmediumto high technology boards, asking that company to produce single sided productmight result in paying an inflated cost for the lower technology PCB. ALR Services works with a range ofmanufacturers, each with their own forte, which allows us tomeet any potential customer demands in themost cost effective way.


Using such a large range ofmanufacturers doesmean that one


has tomonitor PCB quality standards on the OEM’s behalf. ALR Servicesmonitors itsmanufacturing partners on a regular basis and they are graded on quality, delivery and response time to queries, as well as ease to deal with and overall attitude.We seek to


www.electronics-sourcing.co.uk


Salesmanager at ALR Services, Jo Saltman, says PCB suppliers shouldmake regular vendor assessments of their partners


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