Why is focus on component engineering so critical to your success?
As a manufacturer, if you are struggling with high procurement costs? Are at loggerheads trying to manage your inventory while seeking to provide your customers with high quality products at optimum prices? Then it’s high time for you to focus on component engineering as a discipline to help you address these pain points.
So what are the critical areas of component engineering that can help you cut costs?
Accurate BOM planning: Helps you save 10%!
How often have you suffered from costly overheads due to excessive inventory or gotten hit with delays in production schedules because you suddenly went out of raw material stock?
The heart of the matter therefore lies in accurate BOM planning which is a cornerstone of Component Engineering because it helps in accurate material planning & replenishment by doing the below:
- Helping you accurately assess Bill Of Material ( BOM) to decide which parts need to be produced internally & what needs to be sourced from external vendors
- Enables research of low cost alternatives for items that need to be procured
- Works in identifying Low Cost Country ( LCC) sourcing options
- Facilitates updation, maintenance & tracking of inventory to ensure it is compliant with environmental rules & laws of the land.
On the whole helps you procure the right parts, in the right quantities at the right time!
Inventory Data Management: Helps you save an additional 10%!
How many times have you needed vital inventory information to make critical management decisions and have NOT been able to access it as huge chunks of information are scattered all over the place?
A company focussed on Component Engineering benefits from Item Master Consolidation by:
- Easier maintenance of detailed part descriptions along with their electro- mechanical parameters and compliance & packaging information on an electronic component database for easy reference & use.
- Helps them in tracking high risk components within active products & deliver early obsolescence alerts!
Manage Inventory Obsolescence & Save a whopping 15 %!
How often have you been stuck with costly dead inventory as you received late alerts that a component was headed for obsolescence & you could do nothing about it due to the delay in receiving the information? How often did this hit your production & delivery schedules thereby causing further bad debts?
A company oriented towards Component Engineering is able to better manage part obsolescence by evaluating product life cycles at the design stage itself & identifying high risk components in active products so that it has an effective production plan in place well in advance.
Overall any manufacturer across any industry seeking to reduce his procurement costs by streamlining inventory, optimising supply chain to ensure a faster go- to- market approach while ensuring strict compliance with environmental & legal regulations would need to seriously redesign his system & processes from the perspective of component engineering to arrive at real-time solutions to each of the above critical potential problem areas.
What has been you experience in managing inventory and how effective has your supply chain been in catering to demand & supply? Please share your feedback, comments and suggestions here.