SMT007 Magazine

SMT-Dec2016

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72 SMT Magazine • December 2016 pert, Manufacturing Expert and Lifecycle Expert business models. For example, it pioneered on- line rapid prototype ordering with its Scream- ing Circuits business unit and continues to fine tune that model. "We saw OEM product development teams losing resources as budgets got cut. We set out to create a 'fast food restaurant' model that would always have a table when one of those teams needed a prototype. We've made it easy for engineers to customize their orders and un- derstand the lead-time associated that process. Creating this capability was challenging oper- ationally, but provided an excellent point of differentiation," said Jered Stoehr, Milwaukee Electronics' VP of Sales and Marketing. Design engineering is also a strong com- ponent of the business model. While most re- gional EMS providers offer some level of engi- neering support in terms of design for manufac- turability/testability (DFM/DFT), this EMS pro- vider's model includes a product development team and in some cases, original design manu- facture (ODM) capabilities utilizing proprietary motor and control technology. A third area of potential differentiation ties to the ability to provide access to low cost re- gions. The company has invested heavily in its Tecate, Mexico facility. Its quoting model is simi- lar to models used in Mexican shelter operations which predominately rely on manning tables as a precise measure of anticipated project labor cost. This type of methodology makes it easy to ac - curately quote virtually any type of mechanical or electromechanical project and opens the door to opportunities for projects that OEMs may not have thought of outsourcing. From a marketing standpoint, the company relies on a strong web presence, industry trade shows, some public relations and alliances with entities also supplying the engineering communi- ty. While its prototyping business is industry ag- nostic, its volume production business is predom- inately focused on medical, industrial, specialty consumer, defense and automotive aftermarket. From a sales perspective, the company cur- rently has a sales team of two with regional sup- port through manufacturer's reps. Much of its new business comes from projects that start out as de- sign projects and evolve into production projects. SigmaTron International SigmaTron International is headquartered in Elk Grove Village, Illinois. The largest of the four companies we are profiling, it also operates a product development facility in Elgin, Illinois, a manufacturing facility in Union City, Califor- nia, three manufacturing facilities in Mexico, a manufacturing facility in China, a manufactur- ing facility in Vietnam and an IPO in Taiwan. The company focuses on providing Tier One breadth of services and geographic locations to OEMs whose projects are a better fit for a lower tier provider. Their business model includes elements that relate to Systems/Infrastructure Expert, Service Expert, Lifecycle Expert and Manufacturing Ex - pert. In particular, their systems strategy includes a suite of proprietary software tools that maximize the ability of both their internal team and custom- ers to view project status 24/7. It also optimizes the ability of their supply chain management team to efficiently manage a global pipeline of materials. Industries supported include: medical, in- dustrial, consumer, appliance, gaming, auto- motive and aerospace/defense. The interesting dynamic of their value prop- ositions is it that they vary by geography. Con- venience and proximity to an OEM's team lo- cation is often a factor in their U.S. projects. In some cases, availability of a Midwest and West Coast facility has resulted in dual facility proj- ects that support a customer's Midwest and West Coast operations. The US operations are also ITAR-registered to support aerospace and defense customer requirements. Union City is also AS9100C registered in support of aero- space requirements. While Vietnam and Mex- EMS INDUSTRY SALES AND MARKETING: WHY STRATEGIES VARY WIDELY SigmaTron's systems strategy includes a suite of proprietary software tools that maximize the ability of both their internal team and customers to view project status 24/7.

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