Intelligent, AI-supported management of internal and external resources, highly flexible project purchasing, the analysis of life cycle signals, efficient collaboration between external and internal partners and the continuous improvement of all processes are just some of the tools with which a modern procurement system offers comprehensive services for electronics and electromechanics.
Simplice Djiotang, Head of Global Procurement Markets, provides an insight into the complexity and challenges of a globally active EMS/ODM specialist that has long since moved beyond simply purchasing electronic components. Here you will learn how to identify bottlenecks at an early stage, take countermeasures in good time and thus deliver on time at competitive prices despite a global competitive environment.
Global supply chain management is of crucial importance in order to operate successfully in today's global economy. For a group of companies such as the Lacon Group, which is one of the top 20 EMS-ODM companies in Germany, comprehensive planning of the global, widely ramified supply chain across all projects therefore plays a central role.
Global sourcing as a whole refers to the integrated planning and management of internal and external resources and processes for the perfect procurement of components, parts and materials - just-in-time and cost-efficiently, of course.
As a leading provider of electronic manufacturing services, we specialize in global supply chains in the electronics industry. We work with a global network of suppliers and partners to ensure that our customers have access to the best components and materials available.
Our team of experts have many years of experience in supply chain management and have implemented rigorous quality control and comprehensive supplier evaluation to ensure that all components and materials meet our high standards.
We start with a thorough analysis of requirements and objectives to ensure that we have a clear understanding of what our customer wants to achieve.
Thanks to our global partner network and efficient volume bundling, we can offer our customers excellent conditions and added value. We not only optimize our internal processes, but also customer-specific logistics processes.
The right component in the right place at the right time
Agility and flexibility in the project business
One decisive aspect is the possibility of fast and flexible project purchasing, which also includes the strategic part of the procurement process. Lacon Electronic is thus able to react quickly to unforeseen events or changes in projects and adapt the procurement strategy accordingly.
"These tactical capabilities allow us to be agile and ensure that the required materials and components are available at the right time and in the right quantity to successfully achieve the project objectives," explains Purchasing Manager Djiotang. "Close collaboration between the purchasing team and the industrial engineering team allows us to respond flexibly to new requirements when needed, providing our customers with smooth and efficient project purchasing."
Hard facts Benefits
Supply Chain Synthesis
- Vertical demand bundling across all projects in all industries
- Automated BOM analysis via ERP Infor LN
- Early signaling of discontinued components
- Permanent delivery date monitoring
- Real-time signals in the event of changes in the supply/demand situation
- Flexible response to customer requests
Tactical agility
Live signaling from various sources
In view of the rapidly changing market requirements and technological developments, it is also very important for Lacon Electronic to be able to react flexibly.
Signals about changes in the supply/demand situation in the markets as well as direct reports from customers or external information from industry insiders, logistics experts or sales are collected and evaluated centrally in ERP Procurement via various channels.
This makes it possible to respond effectively to changes in demand or other external factors.
"Our fast and tactical project purchasing allows us to respond quickly to our customers' requirements and also take subsequent changes into account," notes Purchasing Manager Simplice Djiotang. "This enables us to guarantee a high level of customer satisfaction and deliver at competitive prices despite a global competitive environment."
The procurement of electronic components can also pose enormous challenges, as was demonstrated not least during the coronavirus crisis. For discontinued components in particular, it is important to receive early signals in order to avoid bottlenecks.
On the one hand, the product life cycle of electronic components and the time between market launch and formal end-of-life (EOL) are becoming ever shorter. On the other hand, component manufacturers are also making more and more adjustments to the product, not least due to their own supply chain challenges. Manufacturers use PCNs (Product Change Notification) to provide information about technical changes.
Life cycle signals such as EOL or PCN and many others are therefore constantly monitored and evaluated in Lacon Electronic's Global Supply Chain Management in order to be able to react in good time to changes and discontinuations of parts and components and to initiate alternative procurement options.
The continuous optimization of the supply chain and all connected processes is another cornerstone of global supply chain management at the electronics specialist. By analyzing key performance indicators and implementing improvement measures, Lacon Electronic can not only continuously optimize its supply chain, but also strengthen our competitiveness in a global supplier market.
What sounds so obvious is actually a precisely planned CIP, which must comply with numerous quality criteria in accordance with DIN EN ISO 9001 and is regularly tested and scrutinized across departments.
"Continuous improvement of all processes is therefore firmly anchored in the corporate culture at Lacon Electronic. We focus on introducing new technologies and training our employees in order to constantly optimize our supply chain and thus offer our customers further added value." says Christian von der Linde (CFO of the Lacon Electronic Group).
ODM stands for "Original Design Manufacturer". An ODM is a company that specializes in the development and manufacture of products and sells them under the brand name of another company. In contrast, an OEM (Original Equipment Manufacturer) focuses on manufacturing products to another company's specifications, but often leaves the design to that company.
An ODM typically handles the entire process of product development, including research, design, prototyping and mass production. This means that the ODM not only carries out the physical production, but also takes on creative and technical aspects of the product design. The client, who markets the products under its brand name, can thus benefit from the ODM's design and manufacturing capabilities without having to devote resources to in-house development.
Life cycle signals refer to information and notifications that occur during the life cycle of a product or component. These signals are crucial in order to be able to react to changes or developments in connection with a product at an early stage. In the field of supply chain management, especially in the electronics industry, life cycle signals include information such as end-of-life (EOL) announcements, product change notifications (PCN), and other relevant data concerning the life cycle and availability of products. Early knowledge of such signals enables companies to develop alternative procurement strategies in good time, avoid bottlenecks and ensure a smooth supply chain.
EOL (End-of-Life) refers to the point in time when a manufacturer decides to no longer manufacture or support a product. An end-of-life announcement provides information that a product is at the end of its life cycle and will no longer be available in the foreseeable future. This may be due to obsolete technology, declining demand or other reasons.
In the electronics industry, EOL notifications are important information for companies to ensure the continuity of their supply chains and to react to changes in good time.
PCN (Product Change Notification) is a notification from the manufacturer about planned changes to a product. These changes can affect various aspects, including technical specifications, manufacturing methods, packaging or other relevant parameters. PCNs allow customers to prepare for upcoming changes, possibly find alternative sources of supply and assess the potential impact on their own processes.
In the electronics industry, PCN notifications are important information for companies to ensure the continuity of their supply chains and respond to changes in a timely manner.