We understand that our customers have a variety of needs beyond what we
may offer. These might include technologies and volume discounting
that are better filled by other companies which specialize in these areas.
More often than not, however, it takes additional time and expertise to
qualify and bring these suppliers on line. This is where we believe we
can help.
In a mutual effort to increase sales, reduce costs, minimize risk, and
enhance the efficiency of the supply chain, Standard has begun to offer a
wide range of procurement services.
Here’s how it works:
Standard handles all prototype and pre-production quantities where quick
cycle time are required and then places the higher volume orders offshore to
take advantage of the lower price structure.
Using this arrangement, Standard maintains an accurate library of all
tooling and revision levels with all necessary backup provisions. Standard’s
Engineering Department will act as a liaison between the customer and the
offshore supplier and provide complete engineering support. All incoming
orders are inspected, AQL tested and certified by Standard to comply with
the customer specifications. Standard also handles all expediting, shipping,
and US Customs issues. The customer only pays for shipping F.O.B. Sherburne,
NY. Standard will also maintain a minimum of 1 month’s inventory (when
requested) for each part number to act as a buffer against potential
irregularities in the shipping schedule. Furthermore, Standard has the
capability and tooling to produce emergency orders should any procurement
problem arise that would otherwise threaten the customer’s production
schedule.
This arrangement serves to simplify the customer’s material procurement
process by providing a ‘one stop shop’. No multiple vendors or midnight
phone calls to the Far East.
By in large, Standard is protecting the customer from the risk of
offshore procurement by certifying the quality of the incoming shipments.
Standard and the offshore source will handle any quality issues. Deliveries
will be smooth because of the stocking program and emergency production
capability offered by Standard. Finally, the customer can enjoy the
significant savings offered by offshore producers.
I would further add that Standard would be willing to heavily discount
any tooling charges incurred on part numbers that may exist at other board
houses. I believe that the advantages mentioned above will help to
significantly reduce supply chain costs.