Issue link: https://iconnect007.uberflip.com/i/1518339
22 SMT007 MAGAZINE I APRIL 2024 capabilities, but they're not used to working deeper than a single- or two-level indentation. Johnson: It sounds like this will make their supply chain management skills an order of magnitude more complex. e supply chains in the EMS world are the real challenge, but we have methods in place to recover in 24 hours from just about any event. However, you don't have that type of recov- ery window for these custom-made mechani- cal parts. It's a different puzzle. at said, I think most of the industry is looking for ways to grow their busi- ness by bringing more value to the customer and mak- ing those customer rela- tionships more sticky. Higher-level assem- blies and box build is an achievable next step, perhaps even a logical step. We've talked about regional manufacturing, and building close to your customers gives you an advantage. It helps level the playing field against the high-volume, low-cost regional play. Johnson: Joe, how should an EMS company get into box build? Where do they start? It's a logical series of events. It oen makes sense to start with your existing customer base. Have an open discussion with them about the direction your company is heading, what it can unlock for them, where you are in the pro- cess, and how you'd like to explore options with them. ose options could be cutting in as a second source to their current solution, an internal or external supplier. Make sure you can repeatedly and reliably meet their needs. You must de-risk it before changing the cur- rent supply chain. You'll have very short cus- tomer relationships if you pull them into trou- ble as they're searching for solutions. If you're transparent about where you're at, where you're going, and the milestones, then they'll be more comfortable showing their cards. ere's a reason they're having trou- ble, and sometimes they hope that changing suppliers will fix their problems. But oen, there are underlying challenges—it could be with their processes, or maybe their market- ing and sales department says something like, "It's great that we offer 31 flavors, but if they want anything other than vanilla, they have to wait eight weeks, and that's just killing us." is is a way to deliver some additional fla- vors tomorrow. It's important to get that on the table. It all starts with candor and a dialogue of trust. It's tough because these conversations tend to happen in a compet- itive bid situation. At the end of the day, the customer you want is willing to have that rela- tionship. So, showing your cards isn't a point of weak- ness. If you don't win that one, you're much more prepared for the next one. But don't try to fake it. Within several months, you can be pretty well down the path of having people, pro- cesses, and systems in place to pivot with the opportunities that come along. Matties: In some cases, you could find your- self controlling everything about that custom- er's production. Do you feel like the relation- ship has to be stronger between a box build and their customer than with a fabricator? Yes, but also the reverse. Expect your cus- tomer to do a deeper dive on you as well. at's where that candor brings value. e conversa-