Why Free Issue Materials Could Turn Out More Costly Than You Think？

The materials from mine or yours? One essential question always raised at the beginning of an EMS-OEM relationship is who will provide the materials. There ate two possibilities: the material could are supplied and delivered by Original Equipment Manufacturer. On the other hand, completely procured materials are purchased by the Electronic Manufacturing Services(EMS) provider's supply chain, and Electronic Manufacturing Services(EMS) has solely responsible for their procurement and delivery.

Advantages and Disadvantages of both these methods. At first sight, free issuing materials seems to save the original equipment manufactur(OEM) money; However, there are a lots of hidden economy question. While it is possible to save money, it may could lead to lost time and money in the long run. Here, i want to share with you the real case from our customers for material issue. In the last few months, one of our projects has some problem of material procuring, there is a chip is really deficient, our customer recommend a supplier which is cooperate with them long term. After contacting, TECOO always think that this is a unreliable supplier and think we couldn't procure, but customer is still persist to procure from this supplier. But recently the customer found this component is a fake. All products will be reworked. It caused a lot of damaged for customers. So TECOO persist to purchase from formal channel, original manufacturer for 20 years.

1.How does TECOO maintain control over the proces?

We employ lean manufacturing and Six Sigma philosophies to achieve quality and efficiency improvements at every stage of the manufacturing process. TECOO consistently exceeds industry standards for quality control, including defects per million opportunities, first pass test yield and cumulative test yields. We embed quality considerations into operational and strategic decisions such as equipment purchases and process strategies.

2.How to get materials delivered on time?

As soon as possible to meet the delivery date, materials scheduling is important, TECOO has Intelligent warehouse management system. Conduct a comprehensive analysis of the material and determine a reasonable purchase plan.For some materials have long lead time, TECOO could make plan to purchase in advance for our customers to save the time. So TECOO provides have a better handle on this and may even have the material in the warehouse. It is convenient to understand the daily schedule for each project and will have an established relationship with material supplier.

3.To make sure the best quality products

TECOO has longstanding supplier relationship and have a great deal of knowledge about the materials. So TECOO can provide have many years of experience ensuring that they get the best materials, and fully procuring materials means that all the checks are made without any additional worry.

On the other hand, TECOO chose international manufacturers for each components,  confirmed brand,part number,specification with customer one by one, and then check the quality and reliability for each incoming parts.