-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Your Shortage Is Someone Else’s Excess
November 16, 2022 | Chintan Sutaria, CalcuQuoteEstimated reading time: 1 minute
The Problem
Excess inventory is a ubiquitous issue in the electronics manufacturing services (EMS) industry and is made worse by the complexity and volatility of the modern supply chain. Considered an unavoidable cost of doing business, unchecked inventory cost has wreaked havoc on manufacturers without strict controls in place to keep their businesses safe. Excess inventory is not only costly for manufacturers themselves, but also for their end customers. Unwillingly, manufacturers are sometimes forced to eat this cost to avoid disrupting relationships with their customers and with the hope of making up the losses in next year’s orders from the customer.
The other end of the inventory position is also a serious problem. While excess inventory can tie up much-needed capital, a lack of necessary inventory can prevent an EMS company from shipping assemblies to their customers. In fact, missing just one part can have a significant impact on the amount of capital tied up in partial kits waiting to be released to the production floor, or in incomplete work orders. The adage, “The most expensive part on the BOM is the part you don’t have,” became popular during the MLCC shortage of 2018 and has continued to ring true during the latest round of supply chain constraints.
Supply chains and markets experience normal fluctuations, so this type of excess and shortage situation is not necessarily unique. But the impact on OEMs and EMS companies seems to be much more extreme than the normal ebbs and flows of a market. This is because even when the market in aggregate has sufficient supply, the right components aren’t in the right places at the right times.
Continue reading this article in the November 2022 issue of SMT007 Magazine.
Suggested Items
Altus Adds PVA's Game Changing PathMaster X Software to Portfolio
05/16/2024 | Altus GroupAltus Group, a leading distributor of capital equipment in the UK and Ireland, has announced the addition of PVA's new PathMaster X software to its product portfolio. PathMaster X transforms programming for PVA's conformal coating and dispensing systems with an intuitive, game-like controller interface.
Siemens Partners with Microsoft to Deliver AI-enhanced Solutions for Resilient Product Lifecycle Management with Azure
05/14/2024 | PRNewswireSiemens Digital Industries Software announced an expansion of its partnership with Microsoft to make the Siemens Xcelerator as a Service portfolio of industry software available through Microsoft's cloud and AI platform Azure and integrating it with generative AI and Copilot features.
ACDi Expands East Coast Presence with Acquisition of Fourth Manufacturing Plant
05/13/2024 | ACDiACDi, a leading provider of electronics manufacturing services, today announces the expansion of its East Coast presence and manufacturing capabilities with the acquisition of a fourth manufacturing plant in Kilmarnock, Virginia. The company signed an asset purchase agreement with QinetiQ to acquire their Virginia facility and its assets, including SMT, wave soldering, AOI and SPI equipment. The deal brings ACDi to 4 East Coast locations with a total of 9 SMT lines.
Emerald Technologies Acquires Optimum
05/13/2024 | Emerald TechnologiesEmerald Technologies announced its acquisition of Optimum Design Associates, Inc. (Optimum), a leading electronic design and engineering services company. Terms were not disclosed.
Ansys’ Collaboration with Schrödinger will Accelerate Materials Development with Unprecedented Multiscale Simulation
05/09/2024 | ANSYSAnsys and Schrödinger are collaborating to deliver an ICME approach that bridges the gap between materials discovery and product development.