What We Offer The following ZVEI members …

The companies represented in the ‚Services in EMS : Procurement – Inventory Management – • Offer services tailored to customers’ • Are committed to quality and environment Initiative‘ offer a wide range of materials manage- Materials Logistics requirements. management. ment services that help enterprises master the com- We steer and optimise your procurement processes. plexity of today’s electronic components and sys- We ensure that your procurement requirements are • Have the expertise required to perform • Determine the desired results and tems. Take advantage of all that your EMS provider met and utilise all price advantages for your pro- the services. performance indicators together with the has to offer in the area of materials management ducts by bundling activities for various customers customer. Materials Management now! and/or by working with leading specialist distribu- tors. Need-based supplier integration (e.g. kanban) : Component Selection and consumption control are just as important here Reliable provisioning guaranteed We make your purchasing activities economical and as job-related procurement of high-grade A parts. procurement processes complete to secure your This is how we optimise inventory management, supply chain and material quality for the long term supply security and logistics concepts. – and you can always expect the best value for your money. Use our knowledge and expertise to your : Supplier Selection – advantage: set your key components in the early Quality Management stages of product development. We fi nd and qualify suppliers to meet your unique needs by analysing them in detail. This process in- : Strategic Purchasing cludes purchasing and quality audits, as well as re- Lead Time We keep our eye on the market for you and spot all gular KPI-based supplier evaluations and progress current price trends to provide you with the basis reports. Quality assurance and supply agreements you need for economical purchasing. Our specialists are key elements of contractual arrangements. not only get you the best prices in all material groups for new cost estimates, they also generate : Allocation Management – added value throughout the entire product life cycle. Obsolescence Management We fi x most problems associated with supply shor- tages in times of scarce production resources at our suppliers (allocation). If genuine parts are no longer available (obsolescence), we offer compre- hensive support at an early stage when looking for alternatives or reengineering your electronic as- Customer Currency semblies. Price Risk

Reliable provisioning guaranteed! ZVEI - German Electrical and Electronic Manufacturers‘ Association e. V. PCB and Electronic Systems Division Lyoner Straße 9 • 60528 Frankfurt am Main Phone: +49 69 6302-437 • Fax: +49 69 6302-438 E-mail: [email protected] • www.zvei.org © DOC RABE Media/Fotolia.com Copyright Frontpage: PCB and Electronic Systems Division Materials Management: Definition Responsibilities and Risks in Materials Management

“Materials management deals with the move- EMS providers are increasingly taking on Existing agreements between the customer ment of materials from suppliers to customers more tasks and responsibilities in materials and component manufacturer must also be across all levels of the supply chain“ management and thus more risks. This shift considered.

(BME – German Association Materials Management, Purchasing and Logistics) of responsibility to the EMS provider calls for joint agreements to be made. Unplanned or short-notice deviations and Every electronic assembly or electronic Materials procurement is becoming increa- changes to planning data inevitably lead to system is impacted by materials, which play singly complex and global. Every action with more work and additional costs because they a dominant role in the pricing structure and and related to the components is a service are time intensive, tie up manpower, lead to The objective of every EMS provider is to minimise risks – ultimately the overall cost. and therefore part of the offer calculation or downtime, increase warehouse and financing and ultimately costs – to the greatest extent possible. pricing. costs, and can even create processing risks. Getting information from our customers about every change at the earliest stage is key.

Share of value added vs. material Allocation of risks and responsibilities in materials Services offered by EMS providers management between the EMS provider and the customer Advice on selecting electronic and mechanical components •• Component selection ... High •• Alternative components Strategic purchasing •• Market monitoring •• Manufacturer selection EMS •• Best-price determination (cost estimates) •• Supplier selection, supplier qualification •• PCN – Product Change Notification •• PTN – Product Termination Notification •• Allocation management ... Inventory management Material •• Quality-oriented warehousing •• Packaging unit Value added •• Security, conservation •• Cancellation, postponement •• Inventory optimisation, monitoring, expiration dates ... Quality management Source: ZVEI •• PPAP – Production Part Approval Process •• Delivery quality •• Traceability •• Discontinued product announcements EMS provider Take advantage of our expertise: get your Risk allocation in •• Warranty, product liability ... services electronic manufacturing services (EMS) Operational purchasing – procurement provider involved at an early stage to mini- materials management •• Purchase order •• Currency fluctuation, price fluctuation mise both: risks and costs. •• Quantity, target date, price •• Lead time vs. customer-specified date •• Incoming inspection •• Insufficient supplier delivery reliability All pieces of the puzzle must be available in the •• Storage duration monitoring ... required quality, quantity and at the right time Materials logistics •• Packaging, shipping to customers •• Transport delays for us to be able to provide the agreed services – •• Logistics contracts with suppliers and customers •• Transport damage at the best prices. •• Just in time, VDA, ODETTE, belt-to-belt, ship-to-line, ship-to-stock •• Loss ... Customer actions Customer •• Change •• Special process: sourcing by component brokers •• Provision by customer •• Forecasting Low ... High Customer risk Low

Source: ZVEI