Issue link: https://iconnect007.uberflip.com/i/1518339
24 SMT007 MAGAZINE I APRIL 2024 tion might be something like, "We modeled this, and it will have a $3 million impact on our cash flow. at's not an acceptable risk for my company at this moment. But if we approach it this other way, we can cut that risk in half." You'll still get all these other benefits; the cus- tomer is getting invoiced, and the cash-to-cash cycle gets the benefit. You want a customer who understands the value of healthy supplier partners. LaRont: Do you see any big shifts coming in supply chain? Is there something we should be on the lookout for? I look at the margins through the value stream, and I look at distribution. I still try to wrap my head around someone in the value stream who doesn't touch or transform a part, driving the highest margins of the value stream. Maybe that's just jealousy. I can't figure it out. e mass customization piece still has a way to go, and it's really hard to do that unless you're in-region. at's a big opportunity. Johnson: From your perspective as an EMS supplier, does wiring harness require the same skill set as box build? How does that fit? If you're getting into higher-level boxes, you will most likely need a great supplier there. ere are very simple commodity types, such as wires, interconnected harnesses, and things like that. en there are defense and aero- space, which is a whole different market, and automotive is yet another market. Johnson: Final thoughts, Joe? Most EMS companies already have some level of capability for box build. ey have a great chain of component level suppliers for assem- bly; it's almost the same with your mechani- cals. Look for commonality. If you have eight customers all using 19-inch racks, there may be some benefit to doing some of that yourself versus outsourcing it. e wire harness business is going through the transition to automation and machine learning, including tools, visual aids, and inspection. It's transforming that industry. His- torically, wire harness has been 100% custom- ized: just a big piece of wood with some nails in it and a wire diagram. I would ask custom- ers, "Is there anything else we can do for you? What headaches are you having?" ey will invariably mention that they would appreciate an introduction to a solid wire harnesses sup- plier. It's a tough business, so go into it with your eyes wide open. Johnson: Joe, thank you for your time and insight. Absolutely. SMT007