Issue link: https://iconnect007.uberflip.com/i/1357726
APRIL 2021 I SMT007 MAGAZINE 9 Nolan Johnson is managing editor of SMT007 Magazine. Nolan brings 30 years of career experience focused almost entirely on electronics design and manufacturing. To contact Johnson, click here. We learned that there are critical parts of our global manufacturing network that rely on a few providers (sometimes, only one), and that a disruption in their manufacturing could quickly ripple through the whole economy. Semicon- ductors are an example, of course. Inventory shortages in the face of increased global demand (driven in large part by the electrification of the automotive industry), caused automotive factory shutdowns in December 2020 and January 2021. And, of course, we learned a bit about manu- facturer disruptions. All these issues have been a part of the EMS industry supply chain since the very beginning: cyclical semiconductor supply and demand; counterfeit parts; white, gray, and black mar- kets; and manufacturer disruptions. All these factors led the conversation to impacts and strategies for responding. On this particular morning, the discussion zeroed in on increased costs and quality. Can you get a more resilient supply channel if you pay more? Can you get better quality if you pay more? Is it actu- ally better to the bottom line to pay a bit more if that means your parts are predictable in both schedule and quality? I-Connect007 Technical Editor Dan Feinberg made a comment that, once said, hung over the conversation like a banner at a banquet dinner fundraiser: "ere's a cost for bad quality, and a price for good quality." Dan's point was that the more you can trust your supply chain to deliver exactly what you've been promised/sold, the more cost effective that supplier is for you. If you have to inspect every piece as it comes in the door, that's a labor cost you incur because your supplier didn't check quality to your specific standards. So how do you solve these particular extrema problems? How do you maximize the value from your supply chain while minimiz- ing the risk? Our experts told us, driving for the lowest price isn't going to lead you to the solution. In this issue, we once again take a firm hold on the supply chain. We investigate how to man- age the reliability and the quality coming from your supply chain. We question typical thinking about suppliers and criteria for success, and we ask what sort of skills your supply chain man- ager should possess. Aer this issue, you should be able to throw another loop of chain around the purchasing department capstan and deliver more meaningful leverage to your own supply chain. SMT007