How to manage the supply chain of electronic components during a crisis ?

Kaerenne CADET
By Kaerenne CADET
A graduate of the EDC Paris, Kaerenne Cadet is head of the purchasing group for Bosch Mondeville. Specialised in the field of electronic sub-contracting for 13 years, her expertise mainly covers negotiations with manufacturers, suppliers and distributors of electronic components.

The Bosch Group, which specializes in the Internet of Things and electronic subcontracting services, has established close ties with electronic components manufacturers for many years. Buyers negotiate quantities, times and prices and guarantee security for customers regarding the wiring of their PCBa and the integration of electronic sub-assemblies.

Natural disasters such as tsunamis and are all unpredictable events testing the reliability of the electronic components supply chain. Manufacturers are mainly concentrated in Asia, and the air transport that carries these components is fast, but vulnerable. For the past ten years or so, we have also witnessed the emergence of a new risk: pandemics and containments. At the start of 2020, the COVID19 crisis quickly affected every supply chains. Undergoing sudden production shutdowns country after country, Bosch buyers and logistics providers have implemented supply methods managed by crisis management units, as close as possible to production or centrally at corporate team level.

Commercial allowances : a guarantee of component availability.

Recognized as a huge consumer and weighing several billion of euros in the electronics market, Bosch is a privileged customer for manufacturers of microprocessors, capacitors, transistors, sensors and other flash memories. Bosch sees its deliveries treated with a priority character. EMS customers benefit from this strike force and delivery security in times of global tension.

On the field, product family buyers receive information from manufacturers about upcoming volumes, allocated directly from Asia. This is called a commercial allocation. Secondly, all Bosch sites share their needs openly during daily meetings. The needs are compared to stocks in transit and distributed according to the priorities mentioned by each factory. This efficient organisation enables Bosch factories to cope with these turbulent times and enables customers to be delivered on time.

The possibility of sourcing directly from the manufacturer or distribution.

For large electronics subcontracting projects, we can use our network of direct manufacturers. This operation allows our customers to benefit from all logistics, from flows organization to end of life management (Product Termination Notification PTN / Product Change Notification PCN). It guarantees a good level of safety and operational excellence.

In addition, to be one of the most complete subcontractors on the market, we have established standard partnerships with Distribution. This optimization of the supplier panel considerably reduces the risk of shortages. In particular for small productions and small series with complex PCBa. If our principals have negotiated prices with distribution, we take over to steer the logistics organization and guarantee support throughout the product’s life cycle.

Working with Bosch means ensuring component availability throughout the entire product lifecycle.

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