PARTNER FOCUS
Challenging times for the Supply Chain
Contract Electronics manufacturer, Circuit Solutions (Cambridge) Ltd, explains how it’s purchasing and supply chain services work to support customers from day one.
months, purchasing will advise the sales team. For obsolete components, customers can either agree for Circuit Solutions to source from a non-franchise supplier that is on their trusted source list, agree an acceptable alternative or, carry out a last time buy. With the components selected, the next stage is to create a quotation, which involves costing various elements. These include planning, SMT assembly, hand assembly, inspection, test, kitting, price of components, programming and tooling. These are all incorporated onto an internal quote sheet, with both SMT and hand assembly calculated on placement rate. The surface mount placement rate is calculated on a scale depending on the number of components placed for the total build.
W
hen a potential client first contacts Circuit Solutions, initially, the enquiry will be handled through the sales team. Normally a request for quotation is supplied in the form of a bill of materials or parts list and Gerber data. The Circuit Solutions purchasing team will then liaise with the sales team or directly with the client regarding component lead times and life cycle status, offering alternatives for obsolete parts where possible and then locating the best fully franchised prices on the market.
Does the purchasing team work closely with the design engineering team at the earliest design stages and if so, what input does the buying team have on component selections and support? The purchasing team works closely with the design engineering team. An open office environment between the two departments helps with efficient communication between the engineering and purchasing teams. Buyers will discuss with engineers, the components available and the suitability for SMT placement as well as checking that there is no sign of end of life. Although Circuit Solutions does not undertake circuit design, it can discuss with clients any feedback in relation to rationalising components, component availability and suggested alternatives, as well as working closely on cost reduction.
Overcoming supply challenges
If a component previously purchased is scheduled to go end of life (EOL), Circuit Solutions is made aware by suppliers. If the customer has placed orders for assemblies containing this part in the last 18
42 JUNE 2021 | ELECTRONICS TODAY
Extended lead times can be an issue and may have a knock-on effect on the production line. The Circuit Solutions buying team have experienced extended lead times on almost all types of devices however, in the past 12 months these have slowly crept out further and further culminating in parts ranging from IC’s, Clock devices, Ferrites and MLCCs going out as far as 52 weeks. Fortunately, Circuit Solutions has highlighted as many lines as feasible, especially within MLCC and Inductor areas that are common components across customers and has purchased stock to ensure it can offer customers an alternative part if the BOM specific part is unavailable to ensure that production is not impacted.
Over the last 24 months Circuit Solutions has reduced its preferred supplier portfolio. The company maintain strong relationships with the well known franchised distributors and with the handful of trusted non-franchise suppliers. Having fortified relationships with its current supply base Circuit Solutions can get improved responses and optimise pricing due to the closeness of these relationships. New suppliers are approved only if they offer bespoke componentry or if Circuit Solutions has opted to go to the manufacturer direct.
Evolving buyer support
In recent years, Circuit Solutions has also modified the role of its buying team. Previously, the purchaser’s role was to focus on sourcing all parts required for a customer build and securing the most competitive price available, as well as getting parts to site in time and in a format suitable for SMT production.
Although these points are still a focus, over the last five years, it has improved its strategy. The company now provides a dedicated buyer for a set of customers, which allows them to develop knowledge of the customer and products to provide the best service possible. Also, when quoting, the BOM is checked, cleaned up and then information
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