5 Common mistakes in PCB Sourcing
VAC Consulting | Published Oct 13, 2021
In our years (10+) working in the PCB industry, we have dealt with numerous customers and assisted them with PCB sourcing. It is safe to say that we have encountered several situations with the customer’s purchasing department. We have compiled a list of the 5 most common mistakes in PCB Sourcing that we see on a daily basis. Can you recognize yourself, or your colleagues in any of these points? Take a look below.
1. Using a factory that does not fit your company
Everybody wants to be Apple, but most likely they are not. One of the biggest mistakes in PCB sourcing we see is that companies want their PCB produced at that one particular factory, but why? This particular factory that you have in mind is probably amongst Dr. Nakahara’s Top 100. These factories have prestige, they have the size, they have the quality. But in most cases, your company is just nowhere near the size that makes any of these factories consider you as a priority, and the #1 reason for this is; MONEY! When you are dealing with factories of this size, your company’s PCB revenue is all that matters. According to UL.com, there are approximately 1700+ real PCB factories in the entire world. Do not focus on the top 100 (Unless you have the volume). What you should be focusing on is; finding the correct sized factory that actually prioritizes your company. This will ensure faster and better service, and depending on the factory’s size, they will move heaven and earth to please your PCB needs. Either that or you can spend 3 weeks for a reply only to hear that you are just not interesting enough. Turn it around, and think like this instead: From the factory’s perspective, do you want to be the small fish or the big fish?
2. What is right is often forgotten by what is convenient
The previous point was about factories. But finding the right manufacturer and handling communication can often be difficult and time-consuming. So, what do you do? Go to a trading company and let them handle everything. It is convenient, right? But do you know exactly how much you are paying for your convenience, and is it really worth it? Tell me, does this sound familiar? “We have a setup right now, it is working, and I just do not want to change it. Too much paperwork, too many resources, I got other things to attend to”. That is all fine. Outsourcing PCB purchasing is often a reasonable solution. They have the know-how, they have the network, so of course, you should use them. It is easy, it is convenient, and they do all the PCB purchasing for you. But this convenience comes at a price. You should at least do yourself the favor of investigating what that price is by talking directly with a factory about their production price. Then you can have an open discussion with your experts about the cost of their services.
3. Dude, where’s my PCB?
Try asking your PCB supplier. Dude, where’s my PCB? (Okay, don’t say it exactly like that.) – Imagine your product malfunctioning causing severe problems to the customer, how do you actually trace the fault? What do you do when you get audited? When the higher-ups come crashing down on you, and all you have is: “Well, it is [Insert random trading company] who is producing our PCBs.” But do you know who exactly made the mistake and how they make sure these mistakes never happen again? If your business partner is withholding this information, a word of advice. CHANGE! It can be truly catastrophic for your company, no matter the size or product of your company. Not knowing what happened when your electronic device self-ignites causing 3rd degree burns to the user, that is bad publicity. But imagine, when you need to find the root of the problem, your business partner tells you, the name of the factory is confidential… What will you do to make sure this does not happen again? Start demanding transparency of where your products are being produced. You have the right to know this!
4. Lead times
“You said this could be done in 10 working days! It’s been 12 working days, where’s my stuff?!?!” Sound familiar? I’m going to be frank with you on this. Most of the time it is your supplier’s fault, but it is also your fault. When you planned this, did you consider that there might be technical questions before production can start? Or have you thought about transport time? One of the more critical ones is when your supplier comes back with this; “Sorry, but the material you request is not on stock. We have to order this now. Lead time is 6-8 weeks”. I’m sorry, what? Our suggestion for this is; Be prepared. Plan ahead. Be ready for several days of delay. There can be really complicated technical questions before production. That can take days. There can be delays in production or your PCBs can be caught at customs in some countries, due to yet another unforeseen holiday. Bottom line: Give your project some buffer days. You will thank yourself.
5. If it ain’t broke, don’t fix it
The danger of success is complacency. It comes in 2 forms; Arrogance and inflexibility. Let me tell you a story. Mr. Happy Holden a very well-known and highly regarded person in our industry, was once hired by HP back in 1970, where HP had sales of $200M. When Mr. Holden retired in 2000 the numbers grew to $65B and is today appr. $355B. That kind of success can only happen with aggressive innovation and risk-taking. His words, not ours. So, when you are sitting there arrogantly saying “You can’t do this better or cheaper than I already got. We already have the perfect setup, there is nothing you can do.” Come on, seriously? Who are you kidding? Go out there and challenge everything. Change your mindset to “Let’s give it a try. What can we lose by trying?” If you do this, your company might grow to share a similar success story and you might be one of the people to thank for that success if you keep an open mind!
Mistakes can happen, and they will happen from time to time. But try to be aware of these common mistakes, and make sure not to make them over and over again. This will, in time, increase your personal and your company’s chances for growth and success.
5 Common mistakes in PCB Sourcing
VAC Consulting | Published Oct 13, 2021
In our years (10+) working in the PCB industry, we have dealt with numerous customers and assisted them with PCB sourcing. It is safe to say that we have encountered several situations with the customer’s purchasing department. We have compiled a list of the 5 most common mistakes in PCB Sourcing that we see on a daily basis. Can you recognize yourself, or your colleagues in any of these points? Take a look below.
1. Using a factory that does not fit your company
Everybody wants to be Apple, but most likely they are not. One of the biggest mistakes in PCB sourcing we see is that companies want their PCB produced at that one particular factory, but why? This particular factory that you have in mind is probably amongst Dr. Nakahara’s Top 100. These factories have prestige, they have the size, they have the quality. But in most cases, your company is just nowhere near the size that makes any of these factories consider you as a priority, and the #1 reason for this is; MONEY! When you are dealing with factories of this size, your company’s PCB revenue is all that matters. According to UL.com, there are approximately 1700+ real PCB factories in the entire world. Do not focus on the top 100 (Unless you have the volume). What you should be focusing on is; finding the correct sized factory that actually prioritizes your company. This will ensure faster and better service, and depending on the factory’s size, they will move heaven and earth to please your PCB needs. Either that or you can spend 3 weeks for a reply only to hear that you are just not interesting enough. Turn it around, and think like this instead: From the factory’s perspective, do you want to be the small fish or the big fish?
2. What is right is often forgotten by what is convenient
The previous point was about factories. But finding the right manufacturer and handling communication can often be difficult and time-consuming. So, what do you do? Go to a trading company and let them handle everything. It is convenient, right? But do you know exactly how much you are paying for your convenience, and is it really worth it? Tell me, does this sound familiar? “We have a setup right now, it is working, and I just do not want to change it. Too much paperwork, too many resources, I got other things to attend to”. That is all fine. Outsourcing PCB purchasing is often a reasonable solution. They have the know-how, they have the network, so of course, you should use them. It is easy, it is convenient, and they do all the PCB purchasing for you. But this convenience comes at a price. You should at least do yourself the favor of investigating what that price is by talking directly with a factory about their production price. Then you can have an open discussion with your experts about the cost of their services.
3. Dude, where’s my PCB?
Try asking your PCB supplier. Dude, where’s my PCB? (Okay, don’t say it exactly like that.) – Imagine your product malfunctioning causing severe problems to the customer, how do you actually trace the fault? What do you do when you get audited? When the higher-ups come crashing down on you, and all you have is: “Well, it is [Insert random trading company] who is producing our PCBs.” But do you know who exactly made the mistake and how they make sure these mistakes never happen again? If your business partner is withholding this information, a word of advice. CHANGE! It can be truly catastrophic for your company, no matter the size or product of your company. Not knowing what happened when your electronic device self-ignites causing 3rd degree burns to the user, that is bad publicity. But imagine, when you need to find the root of the problem, your business partner tells you, the name of the factory is confidential… What will you do to make sure this does not happen again? Start demanding transparency of where your products are being produced. You have the right to know this!
4. Lead times
“You said this could be done in 10 working days! It’s been 12 working days, where’s my stuff?!?!” Sound familiar? I’m going to be frank with you on this. Most of the time it is your supplier’s fault, but it is also your fault. When you planned this, did you consider that there might be technical questions before production can start? Or have you thought about transport time? One of the more critical ones is when your supplier comes back with this; “Sorry, but the material you request is not on stock. We have to order this now. Lead time is 6-8 weeks”. I’m sorry, what? Our suggestion for this is; Be prepared. Plan ahead. Be ready for several days of delay. There can be really complicated technical questions before production. That can take days. There can be delays in production or your PCBs can be caught at customs in some countries, due to yet another unforeseen holiday. Bottom line: Give your project some buffer days. You will thank yourself.
5. If it ain’t broke, don’t fix it
The danger of success is complacency. It comes in 2 forms; Arrogance and inflexibility. Let me tell you a story. Mr. Happy Holden a very well-known and highly regarded person in our industry, was once hired by HP back in 1970, where HP had sales of $200M. When Mr. Holden retired in 2000 the numbers grew to $65B and is today appr. $355B. That kind of success can only happen with aggressive innovation and risk-taking. His words, not ours. So, when you are sitting there arrogantly saying “You can’t do this better or cheaper than I already got. We already have the perfect setup, there is nothing you can do.” Come on, seriously? Who are you kidding? Go out there and challenge everything. Change your mindset to “Let’s give it a try. What can we lose by trying?” If you do this, your company might grow to share a similar success story and you might be one of the people to thank for that success if you keep an open mind!
Mistakes can happen, and they will happen from time to time. But try to be aware of these common mistakes, and make sure not to make them over and over again. This will, in time, increase your personal and your company’s chances for growth and success.