EMS company benefits from Outsourced Procurement

BACKGROUND

This company has worked with Paragon for 13 years and is one of the UK’s largest independent contract electronics manufacturing companies providing all facets of contract manufacturing – mechanical, electronic and electrical for prototype build and small to medium volume production. Their services include pcb assembly, inspection test, cabinetry, wiring Looms and final production assembly.

- decision to outsource procurement: the requirement was to complement the company’s own sophisticated internal component purchasing, stores and kitting facilities with reliable outsourced services for specific projects.

- need for flexibility and improved response times: the company identified that for complex projects their internal structure was not best suited to manage the component procurement and supply chain management.

SOLUTION

The company initially selected 2 kitting companies to ‘feed’ its own assembly area, however, it quickly became apparent that Paragon TCM® provided a number of key benefits, which improved efficiency and reduced acquisition costs. Paragon subsequently took over all outsourced procurement activity.

- partnership approach: working closely in partnership with Paragon, the company has the ability to ‘pull’ Kanban kits on a ‘next day delivery’ basis, enabling it to maximise its manufacturing capacity and improve on-time delivery performance to its customers. In short, Paragon provides the ultimate in flexibility and response time efficiency.

- specialist procurement /logistics management: using the strengths of Paragon’s experience and the Paragon TCM® service, the company additionally has benefited from reductions in both lead-times and acquisition costs providing a competitive advantage as well as increased profitability.

Quote from the company’s Managing Director:

“Our objective is to integrate seamlessly with our customers, delivering the highest levels of service and value. By working with Paragon we are matching their core competence in supply chain and materials management to ours in pcb assembly and manufacturing in order that we achieve these objectives.”