Distribution
The high cost of too much efficiency: why a certain amount of slack in the supply chain is helpful
The “Supply Chain” is anything but the dependable, predictable, free flowing, aligned and unified “LINKED” network that the phrase would have you believe. It is made up of multiple stakeholders with generally aligned objectives based on the ultimate success of their end customers and their end products, or at least in satisfying the next link in the “Chain” – but it is also fraught with competing financial goals and objectives. Steve Rauch, corporate vice president, Future Electronics, tells us more
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oday’s financial environment is extremely demanding, swift and unforgiving, especially for any publicly traded company where the performance falls short of expectation. Return on Working Capital (ROWC) and Earnings per Share (EPS) are benchmarks which very often take precedence and are very difficult for most suppliers to avoid becoming slaves to.
One link in the chain’s safety stock or
buffer is another’s potential liability or missed opportunity, and in today’s financial environment this makes it extremely fragile and prone to breaks. Each link’s risk
mitigation strategy can very often be the next link’s downfall. Except for the largest customers and key strategic accounts, the component manufacturers are generally very much removed from the end customer, and each successive link in the chain increases that separation and increases their dependence on other stakeholders to provide critical services and information. Each link increases the complexity of the relationship substantially. Even the largest component manufacturers are dependent on third parties and their own supply chains to successfully execute on their own
strategies. Terms such as “Manufacturing Lite Strategies” are just code words for subcontracted manufacturing; nearly all suppliers utilise third party final test and assembly partners, which are generally in low cost labour markets but also in geographic areas that are susceptible and prone to natural disruptions, whether meteorological or geological. While sounding extremely daunting, supply chain risks can be mitigated if not totally controlled. Frequent, accurate, open and honest communication (forecasting) plays a critical role in overcoming the challenges outlined above. So does the selection of partners who understand the products, markets and market conditions, while also having the desire and determination, along with financial wherewithal, to invest the appropriate capital (both human and financial) focusing on long term success rather than immediate gratification. Inventory, one of the most basic elements of distribution, plays a key and critical role in success. Too often we hear of the “golden screw or capacitor” that complete assemblies and products are dependent upon before they can be ultimately manufactured. Horror stories about automotive assembly lines sitting idle, consumer products missing critical
launch windows, or profitable competitive advantages being lost due to the inability to deliver are rife in our industry, yet they continue to persist. Future Electronics offers one of the most compelling solutions to this challenge: inventory!
Choosing the right partner plays a significant role in a company’s success. While PPV, High Turns and Low Inventory are metrics commonly cited as measures of a manufacturer’s success, ultimately success should be measured on the ability to delight customers by being able to deliver, and to deliver on time.
www.futureelectronics.co.uk
Wide range of electrolytic capacitors available from JPR Electronics S
pecialist distributors JPR Electronics have been the UK franchised distributor for the Hitano
Corporation for over 25 years, supplying their extensive product range of capacitors and passive components to UK designers and manufacturers. The superior construction, long shelf-life, dependability and wide range of working voltages and values make Hitano the number one choice for many manufacturers worldwide. The most recent product
introductions are RoHS compliant wide temperature range radial and SMT capacitors which can operate from -40 to +85°C. The Radial Electrolytic 85° ECR series operates over the voltage range 10 to 100VDC and are available from 1 to 4700µF. They are manufactured to JIS-C5141 (1971) standard, all types are fully sleeved and are available taped and reeled to special order. The SMD 85° series have values between 1 to 1000µF and operate from 10 to 50VDC, are supplied on tape for automatic placement and designed for reflow soldering processes. Hitano’s range of Aluminium
Electrolytic Capacitors is broad enough to 40 September 2016
cover the majority of requirements. With low ESR conductive polymer, high operating temperature, low leakage currents, ultra-miniature form-factors and long life types all in SMD and through- hole casings. Snap In product is also available in standard format, high temperature and low impedance. A range of slim electrolytics are also available where board space is a premium. “We are the main UK distributors for Hitano capacitors and can offer a huge range of Hitano electrolytics from stock including axial and radial lead, low leakage, low impedance, non- polarised, snap-in can, and V-chip miniature SMD types,” says Paul Raynor, director of JPR Electronics. “Hitano ECA, ECR, EHR, EXR, ELP, EHP, EHV, ELV, EMR, EMRL and E5R ranges are all available for next-day delivery from our in-depth stocks.”
The Hitano Enterprise Corporation, now exporting over $15m worth of product, were founded in 1980 for the production of Electrolytic, Multilayer, Ceramic, Chip and Film Capacitors, Metal oxide varistor’s, Resistors, Inductors and Resettable Fuses (PPTC). All products are manufactured under
Components in Electronics Wide range of Hitano Capacitors now available from JPR Electronics
internationally approved standards with strict quality control. Products and management systems gained ISO-9001 international certification in June 1997.
www.jprelec.co.uk www.cieonline.co.uk
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