SUPPLY CHAIN MANAGEMENT
The phrase, “think globally, act locally”, personifies SigmaTron International’s supply chain management philosophy.
Key elements of our system include:
- Strong systems linkage with customers and suppliers
- Experienced commodity management team in Taiwan International Purchasing Office (IPO) combined with dedicated local purchasing teams for each facility optimize the best sourcing channels based on geography
- Automated replenishment systems to ensure rapid response to demand variations
- Stocking programs customized to customer needs
Our Taiwan IPO has been established for nearly two decades and features a seasoned team of commodity specialists. Core supplier segments that the team develops strategic relationships with include: printed circuit boards, semiconductors (ICs and linear logic), power products, connectors, electronic components (relays, electrolytic and ceramic film capacitors), plastics and metals. The team supports sourcing for all facilities and is involved in the quoting process, as needed.
In addition to identifying best sources and monitoring trends in each commodity, the team manages supplier quality in Southeast Asia. Team members are Green Belt-certified and use Six Sigma tools to analyze supplier quality issues.
Localized Purchasing Support
Purchasing teams dedicated to each facility monitor their local market. Customer requirements are evaluated for best mix of local and Asian sourcing based on volumes, pricing, demand variability and customer approved vendor list (AVL).
Robust Systems Strategy
SigmaTron combines Exact Macola ES ERP software with its internally-developed iScore suite of supply chain management tools. An MRP Share program provides suppliers with complete customer forecast visibility, plus current inventory and material on order. The iScore system supports vendor-managed inventory (VMI) and Production Driven Replenishment (PDR™) pull signals. Customers are given visibility into inventory status via the Score™ customer portal.
VMI is used, as needed, with component suppliers. It can also be used with customers wishing to consume transferred inventories before new material is phased in. PDR™ is triggered automatically when the iScore system checks inventory for shortages as shop orders are released. If a shortage is detected, a PDR™ pull signal is sent to the supplier and parts are received in 2-7 days.
An Automatic Replenishment System (ARS) is used for higher volume “C” items. The ARS brings these items in at regular intervals.
Supplier Performance Measurement
Suppliers are measured on on-time delivery, ongoing quality performance and cost on a continuous basis. Performance is tracked by the production facility consuming the material. Suppliers access their feedback via their primary purchasing agents. Suppliers of fabricated parts are audited as part of the qualification process. Audits are repeated if quality issues arise or the scope of the business changes.
Committed to Component Integrity
Unless directed by a customer, SigmaTron does not buy from non-franchised distributors to minimize the risk of counterfeit components. If production testing indicates components are failing, the failed components are immediately investigated. In the event a customer authorizes use of non-franchised distributors, SigmaTron can arrange for added testing/validation through component manufacturers.
Green Compliance Service Center
The Green Initiative Compliance Service Center is one example of ways that SigmaTron International’s materials organization is going the extra mile to ensure materials integrity and regulatory compliance. The center is located in Taipei, Taiwan and interfaces closely with component engineers and procurement professionals to gather necessary materials documentation from suppliers related to regulatory, social and environmental initiatives such as RoHS, RoHS II, REACH, Conflict Minerals and California’s Proposition 65, as well as customer specific initiatives, and communicates with the rest of the Company’s supply chain management organization.
Specialized software supports the operation by providing updates as monitored jurisdictions create new rules or modify existing rules. The tool can also be programmed to support customers who have specific lists of substances and materials that they want to track.
Supporting our Customer’s Sourcing Strategy
We link closely with our customers’ supply chain personnel and will make sure that customers get appropriate credit for the material ordered on behalf of their programs.
More about SCORE™ and PDR™
“SCORE” – SigmaTron Customer Operation Resource Environment
SCORE is a proprietary software program with the following key features:
- Secured Web-based environment used by the Company’s registered customers to view his/her private program data remotely
- No limit is placed on the customer for either time or frequency of access, or program log-in
- All data accessed by a customer can be exported and viewed by him as a Microsoft Excel file
- Any items listed in an “Open Order Report” view are shown in a “red” font color and signals that those items are scheduled to ship that day
- Each shop order has a specifically defined, Process routing
- Program promotes quick access to the following:
- a program’s sub-details, such as in the availability of FGI (Finished Goods Inventory) to support customers’ requirements, i.e. spares, in-house manufacturing, etc.
- past shipments with multiple time-lines
- shipping method, i.e. UPS, Fed-x or SigmaTron International Truck
Using SigmaTron SCORE, customers also have the ability to:
- Retrieve real-time data from ERP (Enterprise Resource Planning) system
- Utilize data to obtain “high-level” (virtual) visibility into a SigmaTron factory
- View production backlog for multiple sites
- Analyze shop floor orders to review material shortages
SIGMATRON “PDR”– Production Driven Replenishment
PDR is a proprietary software program with the following key features:
- Trigger an automated purchase release as the collaborative iSCORE system checks inventory for shortages. This PDR activity is timed to function just as shop orders are released.
- SigmaTron PDR is intuitive. If a shortage is detected, a PDR “pull signal” is generated to a supplier for automated replenishment, typically within 2-to-7 days.