Expert Details

Expert in Global Sourcing - Electronics, Metals and Plastics or Construction Materials

Expert ID: 724936 Florida, USA

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Managing risks is the key to working with suppliers in the Far East. If you are able to have a working relationship already, with a good core of suppliers, the risks is minimized, only to a certain point, but at least there is a familiarity which exist already.

Being able to manage cost, supply, capacity and terms while maintaining business ethics is the key.

The attitude from a lot of people doing this type of work, is that supplier in the low cost regions, are so busy, that they have 10 to 20 customers coming to them to do their work. That is not true. You are still the customer, and suppliers that are financially sound will work with you.

He found a new supplier to source metals parts. To minimize the financial risk, supplier agreed to do tooling, invest their money to do it, to prove their quality and workmanship, to get the opportunity for business.

These are the suppliers you need in your network. Not some unknown.

This can mean domestically or international. Globalization does not necessary mean moving everything overseas. This can mean commodities or suppliers.

Suppliers and commodity, where do we want to be and how do we manage that part of it. How do we leverage products and volume to get best pricing?

He took three commodities, Plastic, Metals and Electronics and shared the information on how we plan to work together. The metals knew some electronic suppliers, and plastic suppliers.

Globalization is only good, tailored to a companies' need, not to the supplier's need.

It is like gambling, only it could be drastic financially if proper research is not done. Cost is not always a factor when dealing with international sourcing. Need to evaluate other important issues with each suppliers.

He made sure all his contacts were good. All of the suppliers he had dealt with, even if there was no business there, still kept in touch. This help to select certain suppliers for certain projects. The risk factor is minimized because he already know what they are capabable of, eliminating site survey, and putting in investments to bring people over to qualify. Qualification is done through 1st article approval, then the company sends over the representative to have a face to face and do the site survey.

Kanban has to be tailored to each supplier. The key here is to be able to provide the supplier the goals and objectives of the company to our suppliers so everyone is on the same path.

He set a system where it was a win-win for both supplier and his company. He provided 4 weeks, two hard and 2 forecast of the parts to be produced. Minimum qty of 1 month worth of inventory, some suppliers able to carry up to 3 months worth. Minimizing production downtime, increasing inventory turn, reducing inventory values.

Implement Kanban or consignment plans to help eliminate leadtime issues. Leadtimes need to be real, but if agreements are in place, are followed, then lead time does not become a factor, unless the part is over-forecasted.

Leadtime. He did not like forecast but most suppliers want one. Sometimes the numbers are lower, some are higher but each month is different. The leadtime can be corrected and controlled through a Kanban or consignment agreement.

Using this software to share to everyone involved the goals and accountability of dates provided.

He uses MS Project because it is an accountability tool. Dates are provided, agreed upon by person responsible, and need to be carried out.

Transition project time line, was provided to everyone on the team. He introduced dates, functions, targets and who was responsible to make sure it happens.

This helps to control what is out there, because memory alone will not do it.

Understanding the process cost factor will provide a reduction quicker than outsourcing. Once that is determined, then if cost is still not competitive, then we move to outsourcing.

He took a look at a group of boards, decided if it would be more economical to go to a four layer board, to make one raw PCB for 4 versions. Ended up two boards were the same the other two could not due to the IC used. But ended up using 32 up versus 8 up. Cost reduction.

Accountability is the key in project management. Follow ups and maintaining a set schedule to prevent any extra incurred cost.

One of the functions of sourcing

He uses this function mainly to help manage suppliers. This function can be done by a buyer/administrative assistant to open orders, expedite orders, and other functions.



Not many people understand or know what this is. If we are able to identify the risks, and have a plan if that risk is achieved, there is a plan to handle that.

Identify, plan, then action.

He used his risk management experience with low cost regions. How? Four things: financial, capacity, location, and pricing. Selecting supplier in LCR is difficult so being able to communicate and build the relationship is key.

He built the relationship by having company invest their resource to make it where it works. Invest time and sometime financial to make it work.

Vendors, suppliers, we need to treat each differently. Are they vendors, partners or just a small business owner, middle man. We need to understand that to be able to negotiate and leverage our buying power

Implementing a supplier agreement, where it is a win-win for both supplier and company.

He reviewed all agreements in placed and ended up re-writing it. Made the suppliers feel that their hands were tied and it favored the company, not the supplier. In order to open the line of communication, company and supplier need to understand each other. what the goals are and what the objectives are. Then combine to see how to achieve these goals.

Cost reduction should not be based on a "cost based" number but has to include the "soft" cost that most people do not realize.

Case in general happen at a company, where moving PCB assemblies to another supplier. The number provide was inflated and not accurately presented to management who made the decision to move forward with the project.

As soon as the project was provided to me to review, the data I derived from all the information provided, from buyer to supplier, we made a drastic mistake. The numbers ended up losing profit and spending unnecessary capital to get a losing profit.

How did I correct this? Presented the data in real terms, NRE, Tooling, Engineering Time, Production downtime, Inventory, Logistics, Quality, Production, and the only way to save this was to go find alternative parts that were cheaper that what was on the AVL.

This would make a positive out of something that would be a major cost increase effect to the projects and production.

Need to be aware of all cost, to get your true cost reductions

Expert may consult nationally and internationally, and is also local to the following cities: Jacksonville, Florida - Tampa, Florida - Saint Petersburg, Florida - Orlando, Florida - Clearwater, Florida - Gainesville, Florida - Palm Bay, Florida - Lakeland, Florida - Melbourne, Florida - Deltona, Florida

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Education

Year Degree Subject Institution
Year: 1993 Degree: BS Subject: Electrical Engineering Institution: Northeastern University

Work History

Years Employer Title Department Responsibilities
Years: 2007 to 2008 Employer: Datamax Corporation Title: Global Commodity Specialist Department: Responsibilities: He is responsible to provide the global sourcing experience that Datamax did not have. Generated a lot of excitement, based on previous relationships built with suppliers. Introduce risk management to company, as well as supply management.
Years: 2005 to 2007 Employer: Hue Enterprise Title: Owner Department: Responsibilities: Importing and exporting of castings, metals and construction material from low cost regions.
Years: 2001 to 2004 Employer: WAI Transpo Title: Global Purchasing Manager Department: Responsibilities: Outsourcing to close out production in US. 3 year plan for transition.

International Experience

Years Country / Region Summary
Years: 2001 to 2003 Country / Region: Shanghai China Summary: He did a 3 yr plan to transition production from US to China facilities. First stage was to get raw materials approved, then sub assemblies and finally finish goods. Cost reductions.
Years: 2001 to 2003 Country / Region: Taipei, Taiwan Summary: He developed more complex parts to be moved to a more diversified and better technology of low cost regions. The key was to transition from Taiwan to China. Cost reductions
Years: 2005 to 2008 Country / Region: Vietnam Summary: As this region is growing, being able to produce and have the raw material available, the labor market is as competitive or more than anywhere in the world.

He moved a lot of textile products and wood furniture for competitive pricing as well as better control process implemented by his group

Additional Experience

Training / Seminars
He has provided companies with a vast amount of knowledge, based on his experience with low cost region sourcing. He has set a proven process that he trains and tailor to an existing companies' process. Low Cost Region Sourcing vs Domestic Sourcing: Implemented the risk, management, identification, and supply management process for easy transition.
Vendor Selection
He does not base his proven process in number of years of experience but in the number of years of experience worth counting for. Far East or Low Cost Region Sourcing: In developing a supply base, a relationship is built on hard work, developing, setting goals and process to achieve maximum return. He makes sure that the company is supportive and to understand that in order to achieve maximum objectives, we need to work and build these suppliers. Understanding the cultural differences and challenges of supply chain management requirements. Pricing sensitive.
Marketing Experience
Reviewing the unstable pricing of raw material, metals, electronics or plastic but managing pricing through process control, more than raw material cost fluctuation.

He builds his reputation and process based on when the movement of sourcing overseas became more adaptable, more cost driven because if you have 10 or more years of experience, anything pass the 10 years would be worthless. Low cost regions do not have the capabilities or the materials back then like they now do.

So experience that really counts is from the beginning of year 2000 and moving forward. Anything previous was just a lot of work with minimum return.
Other Relevant Experience
Professional with a lot of supplier contacts, domestically and internationally.

Based on experience and knowledge, expert has a proven process to go into global sourcing or to low cost regions. Minimizing risks as well as managing suppliers, domestically or international.

He does presentations, cost analysis, vendor management, risks - identify and plan, ROI, NPV analysis, top negotiation skills, CAPEX, project management, and ability to work with all departments and high executives.

He has the ability to learn software, commodities, processes, quickly to gain quicker results.

He is result driven. A numbers guy.

Language Skills

Language Proficiency
Vietnamese

Fields of Expertise

Far East sourcing, globalization, international sourcing, outsourcing, kanban, lead time, Microsoft Project Manager, printed circuit board manufacturing, project management, purchasing, risk management, vendor, vendor control, cost reduction, business ethics, European sourcing, labor cost estimation, lean manufacturing, build-to-order, product variety optimization, design to capacity, project execution planning, distribution requirements planning, project review, contract manufacturing, business management, residential building construction, bill of materials, product traceability, project assessment, integrated product team, cost evaluation, manufacturing lead time, Lotus Notes, electronic data interchange format, enterprise resource planning, proposal writing, supply chain management, ISO 9002, international marketing, international trade, resource planning, inventory control system, production cost, international shipping, engineering change control, production planning, inventory reliability improvement, production schedule, printed circuit board machine project management, value analysis program management, international technology transfer, product development cycle time, electronic system program management, project cost engineering, manufacturing resource planning, printed circuit board design-for-manufacturability, printed circuit board design, construction schedule, construction contract, cost analysis, manufacturing systems analysis, manufacturability design review, international organization, international telecommunication, construction inspection, material requirements planning, management, product, construction cost estimation, printed circuit board assembly process, printed circuit board, construction project management, research and development management, manufacturing systems modeling, cost estimation, building construction, product design, electronic document, cost, design engineering, international manufacturing, international licensing, cost control, inventory classification and coding, inventory, assembly process, manufacturing control, project scheduling, project planning, production management, production control, planning, operations management, materials control, manufacturing, just-in-time inventory, inventory management, inventory control, electronic data interchange, business process re-engineering, manufacturing automation

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