Tough times call for cooperation across the supply chain.
Often we say who is in charge when we mean – who is to blame? That question has been asked a lot over the past couple of months as the financial markets appear to be melting down. Congress points a finger in one direction, while the Federal Reserve points it in another. Wall Street and Main Street point at each other and in the end, regardless of where the finger is pointed, we all suffer together!
While watching a pundit offer analysis of what was going on in the world financial and credit markets, I started to chuckle because it sounded all too much like our industry’s ongoing supply chain feuding. Who’s to blame for our industry’s problems, the fabricator or the assembler? The designer or the OEM? Our government or foreign governments? All of the above or none of the above? And regardless of where the finger is pointed, the result is the same, we all suffer together!
This brings me back to asking the key question – who exactly is in charge (or to blame) because there’s a good chance they are part of the problem and a component of the solution. During a panel discussion I participated in at PCB West, it was pointed out by many that the designer is firmly in control of how a design drives costs throughout the fabrication process. Valid points were raised concerning the importance of the designer/fabricator collaboration to foster a DfM environment and elevate costly errors.
As the markets screamed for a “bail-out,” which Congress bobbled and finally approved. During the process, the consensus began to shift through the government and through Wall Street and through Main Street that maybe EVERYONE had something to do with the problem – and therefore, everyone needs to be a part of the solution. As I look at our industry, and the unfortunate economic turn of events that everyone will be a part of, it is more important now than ever that the entire supply chain kick into high gear– working together not against each other!
Designers need to understand that their success will be impacted, in large part, by how well they understand and work with their fabrication and assembly suppliers, ensuring that only the highest quality and lowest cost product makes it to market. Fabricators need to communicate with designers and to work with assemblers so highly manufacturable product is consistently the result. And assemblers need to become valued customers by communicating and being far more flexible to designers and fabricators who assist them in providing a quality and competitively priced product to their OEM customers.
It all sounds simple, and some will say we are already doing it, but in reality, when I am amongst colleagues, the old Hatfield and McCoy battle still rages on. Some assemblers act like a conquering army smashing any fabricator who offers input and does not buckle under to cost demands. On the flip side, some fabricators still look at assemblers as the enemy and at designers as wing-nut gear heads who are out to destroy the world of fabrication. And some engineers treat everyone else in the supply chain like uneducated morons who are woefully under qualified to assist in any design for manufacturability decision. Simply put, we all are in this together, and the next few quarters will be rough for everyone, but especially for those who are not working together with their supply chain partners. The days of demand with minimal respect and minute reward will not get us where we need to go.
So, exactly who is in charge? Each of us plays a role. If everyone works together to make sure that the best ideas are being put forward and the best designs are fabricated and assembled, then increased value and a faster time-to-market will quickly follow. Regardless of where you are on the supply chain, the paramount goal should be to surround yourself with trusted suppliers/customers who are interested and open to discussion. Everyone needs to realize that by working together a better product can be made. This means sharing information, being available and, most of all, rewarding your customer or supplier with the best service.
We cannot forget honesty and best effort. Everyone in your organization needs to be working in the right direction. If the approach is not going to work, don’t be afraid to say so and explain why. If the price is too high, say so but explain why. If the delivery is not going to work, say so, but explain why. Only by honestly sharing can the supply chain work effectively and give the level of returns we ALL need to be viable businesses that provide long-term quality and service at the best value.
There have not been many times that have demanded so much collaboration. The financial community has discovered pointing fingers and looking toward someone else to be the one to take the fall simply will not work. By looking forward, those of us who work together will have the best probability of making it through these challenging times and be in the position to lead in the years ahead. So exactly who is in charge? We ALL are because each of us has the capacity to affect change. PCD&F
Peter Bigelow is president and CEO of IMI (imipcb.com); This email address is being protected from spambots. You need JavaScript enabled to view it..
