Issue link: https://iconnect007.uberflip.com/i/1406534
32 SMT007 MAGAZINE I SEPTEMBER 2021 to cash flow issues, but fortunately, we are fi- nancially very strong, and can pipeline longer than normal inventory. Our ability to purchase parts right away protected many of our cus- tomers from extensive product delays. One of the things we're very good at is we go back to our customers very quickly to highlight what's happening. "To protect you, this is what you need to authorize us for. We've given you the solution; you just need to authorize us." ey really appreciate it, because we're not coming back aer the fact saying, "Sorry, the distribu- tor screwed up, and I can't have the parts." For most customers we work with, in cur- rent market conditions, we carry a six- to nine- month pipeline inventory, and visibility for next 18 months for long life cycle products. We're constantly watching over that, figuring out any changes that could jeopardize it, bring- ing it to their attention, and getting their ap- proval. But they appreciate that we're able to do that and proactively give them input ahead of time, so it doesn't become an issue. So far, we have not missed any delivery because of lead time issues, because we plan for it way ahead of time, and are financially able to buy the parts ahead of time; of course with custom- ers approval. Johnson: How about pricing? Is that as volatile as the availability? Irfan: It is very volatile. For the 20-cent parts, sometimes you're paying $2. In prototype quantities, when you're building for 10 boards, customers just say, "Get whatever you can." In current market, we have been getting them from distribution or known trusted brokers; wherever we can get the parts to timely build our protos. In some cases, where we suspect part quality could be an issue, we use a quick lab test to check the legitimacy of the part and then use it. And some we have longstanding relationships where we know these are known suppliers and they're not going to be counter- feit components. Matties: I would think counterfeiting is on the rise as well. Irfan: Big time, yes. Johnson: It sounds like your parts and procure- ment team must be doing checks against all of the active BOMs on nearly a daily basis. Irfan: Yes, we are. We understand how impor- tant and critical it is, so we're doing it. Matties: Have you reallocated staff into that area because of the demands? Irfan: We have. Johnson: Does your parts availability database tool help you in the management of this part of the supply chain? Irfan: It provides some visibility because parts availability is very volatile right now, but It's more related to end-of-life specs, tying it to al- ternative part numbers, and general part life history. Johnson: at's interesting, because end of life and extremely long lead times are kind of dif- ferent causes but end up with similar respons- es, right? We need an alternative part. Irfan: Well, not exactly. With end of life, you just can't get the part anymore; it's over. But with long lead times, if you're planning ahead of time, we've mitigated that risk. We place those parts on order, or we paid more some- where just to get them. Matties: Very good. Is there anything that we've missed that you'd like to cover? Irfan: I think that's it. We appreciate the oppor- tunity. Nice to catch up with you. Matties: anks for your time. SMT007