The proven way to reduce the cost of acquiring electronic components

How many companies who manage procurement and supply chain management in-house can truly say that they have an accurate figure regarding their real cost of acquisition? The answer is surprisingly few and those that have endeavoured to calculate it will have found that it is significantly higher than the total cost of their components. There are hidden costs incurred right across a business and Total Component Management^TM from Paragon is the proven way to reduce these costs.

If an OEM is managing procurement in-house and is purchasing a large number of electronic components from multiple vendors, they could be managing several thousand components. Typically 30-50 % of these will be ‘live’ at any one time and would require a significant level of time-consuming, day-to-day attention. Consider the ‘hidden costs’ that are incurred throughout the following ‘ten-step’ acquisition process:

• Identifying potential suppliers
• Obtaining quotations
• Placing orders
• Progressing/expediting
• Managing obsolescence, lead-time issues and alternative part sourcing
• Managing multiple material deliveries
• Inspecting all material on arrival and booking in to stock
• Managing supplier errors and returns procedures
• Preparing devices for assembly – i.e. pre-forming, cropping, programming, oven baking, re-packaging, re-reeling etc
• Processing multiple supplier invoices and reconciling supplier statements and payments

In order to support the above processes, a large amount of space, considerable manpower resources plus IT support are required, all of which ties up a significant amount of cash that could be far better used funding other key business
elements. Fortunately there is a proven alternative – Paragon’s Kitting service … Total Component Management^™

Total Component Management™ from Paragon

Paragon’s Total Component Management (TCM^®) enables OEMs to outsource their entire component supply chain and avoid the complexity and cost detailed above. It's a single source for all the components used on a single or suiteof printed circuit boards - labelled, prepared and delivered ‘assembly ready’ on a date that suits your production schedule.

Paragon Electronic Components Plc is a leading UK kitting specialist – and by working closely with our customers, we can protect their production schedule from the uncertainties of the electronic components marketplace, remove costs from their supply chain and, by ensuring the on-time delivery of complete assembly ready kits, enable their staff to concentrate on other key business elements.

For more information download the datasheet