Issue link: https://iconnect007.uberflip.com/i/1477844
SEPTEMBER 2022 I SMT007 MAGAZINE 37 woodwork. It was a $50 part, we confirmed with the manufacturer that they had never sold them for less than $47 or $48, yet the broker had them for $6. ey wanted money wired up front. ere were red flags everywhere so we obviously didn't proceed with that buy. Johnson: You talked earlier about working with customers to put parts on consignment because otherwise you're being everybody's bank to the tune of millions of dollars. Lentz: You're right. I always say my best friend is finance. is is where we really need the cus- tomers to partner with us. We're working with our suppliers, we have great relationships with the major distributors, direct relationships with manufacturers, who will work with us where they can, to hold inventory a little bit longer for us. ey've been good about it, they really have. is is like nothing I've ever seen. In the past, you've had your tantalum caps, DRAM, and PCB material shortages, but nothing like this. At any point, something can go from a 12- to 40-week lead time. Johnson: Right now, the value-add of being an EMS company is in helping your customer keep their manufacturing and their forecast on track. With all these issues, you're on a trea- sure hunt to find the parts, to keep their sched- ule on track. How do you differentiate yourself against your competition in that regard and how do you monetize this value-add? Lentz: Here's what we do. We quickly iden- tify the problem and solve it. Obviously, the engagement with our customers is so critical. What are their drop dead requirements? What will get them through? If they need 20,000, I'm working with Analog and Ford's chas- ing the same part, but if I can get 2,000, that will get them through their gap. at's how closely we're working with our customers. We find tremendous value in getting our custom- ers engaged right away as part of the escala- tion. We're not embarrassed to tell them that we have an issue. We want to get our customers involved right away as partners. It differentiates us from some of our larger competitors that we want them to understand, and we both learn from it. We tell them, "We should have a long lead BOM, we should do some risk buys," and then we point out, "Remember this is the part that came up a few months ago." ey're more welcoming and they really appreciate it. ey understand we aren't penny pinching with them. at was always the concern, that your customers would think you're trying to get them to put in con- signment just to help. No, this market is real. ere are really big players outside our indus- try using the same parts. When I look at our sites, I'm amazed at the relationships we have with our customers and how tied in we are with them. ese guys are down on the ground, making weekly even daily calls, working shortages. I know the customers appreciate that, so that's one big change over the past two years; it is a partnership. I tell our customers, "Our suppliers want to be able to invoice us. We want to be able to invoice you." We all want to solve these as quickly as we can and to satisfy them. We're very passionate about it, believe me.