Small changes can make the difference between a profitable project and a time wasting money drain.  In the Electronic Contract Manufacturing industry, supply chain/ material management can have a greater impact on profitability than almost any other element in the process. 

A few critical aspects, of supply chain management, that can help companies maintain their profit are: demand accuracy, purchasing power, and communication.

Demand Accuracy
How can you plan if you have no idea of what to expect?  You cannot control customer orders and forecasts, but you can mitigate their potentially negative impacts while leveraging the positives.

• Customer Accountability - Keep customers accountable for excess inventory due to demand changes and fluctuating forecasts.  Customers want the best possible price and flexibility.  If you can provide this, good customers will be willing to share in the risk for a greater reward.
  
  
• System Information - Keep system information updated and accurate.  Garbage in = garbage out.  Keep orders, dates, job status, and quantities updated.  Current information and settings will allow your system to keep inventory levels at the optimum level and help you get shipments out on time.
  
  

Purchasing Power
Companies like Foxconn, Flextronics, Sanmina-SCI, and Solectron have tremendous purchasing power which allows them to be more competitive and still profitable.  Small to mid-sized manufacturers may not have the same purchasing power, but they can often increase their leverage with existing orders.

• Combined Orders - Combining demand and delivery based on current and expected demand are crucial.  You may not have Foxconn levels of demand, but that shouldn't stop you from leveraging what you have.
  
  
• Purchase Commitments - Most suppliers are willing to provide better pricing for commitments of larger/more purchases.  Committing to purchase your most expensive/highest volume components from a supplier will often result it better pricing and terms.  Just make sure to be reasonable in your commitments and manage demand and bonded inventory levels closely.
  
  
• Common Manufacturers - You need to build according to customer specifications, but that doesn't mean you can't standardize as much as possible.  Many customers are willing to approve new AVL's if it will save them money, improve delivery, and maintain quality.

Communication
Improved communication between customers, suppliers, and your company can only promote success for all parties.  Everyone in the supply chain wants to succeed, and they succeed as their partners succeed.  Open and improve communication so you can all work together for mutual success.

• MRP Sharing - Giving suppliers visibility of your current and future demand will help them better maintain their inventory levels.  This will help them to be as profitable as possible and ensure the parts you need are ready when needed.  Suppliers should be notified as soon as possible after demand changes in either direction.
  
  
• Customer Updates - Keep customers apprised of your progress.  Let them know what is done and shipping, and what is delaying shipments.  As they see your openness and communication, they will trust you more and rely on your services and expertise.
  
  
• Internal Communication - You should consider your internal processes and departments as part of the supply chain.  Internal departments cannot be islands of information.  Inventory should know immediately if production needs more components.  Purchasing should know when inventory is low or out of stock so they can replenish stock before it impacts production.
  
  

Mastering these areas does not guarantee success, but ignorance or incompetence in these areas nearly guarantees failure.  If you are lacking in any of these areas, start now to correct it.

ManEx provides the tools for manufactures to be efficient and effective in their materials and supply chain management.  The rest of this section will address how ManEx help with each solution listed in the business solution section.

DEMAND ACCURACY

• Customer Accountability - After the contracts are in place, you can manage demand changes in the Sales Order or Forecast module.  You can monitor customer committed inventory levels with the standard inventory module.  For greater visibility and control, you can use the In-Plant Store module to accurately control and monitor inventory levels and use.
  
  
• System Information - Keeping the order and inventory information updated and accurate will allow ManEx MRP to effectively manage your ordering and inventory levels.  ManEx provides numerous system settings to allow you to control how MRP uses the orders and fulfills demands.
  
  

PURCHASING POWER 

• Combined Orders - ManEx allows you to have one internal part number to multiple supplier, customer, and manufacturer part numbers.  This increases the likelihood of common parts and increase combined demand across orders and customers.  ManEx provides complete visibility for all demand.  If used properly, buyers can place a single order for each part number and not have to modify the order or create a new one unless the demand changes.  This can lead to significant time and money savings.
  
  
• Purchase Commitments - Using the In-Plant Store module, you can create and manage supplier contracts.  You have instant and complete visibility of available supplier inventory, contracted pricing and purchase levels.  Kitting will know when to use internal inventory, and when to pull from supplier inventory.  System notes and fields can help buyers know which parts are committed to specific suppliers and which are open for any supplier.
  
  
• Common Manufacturers - ManEx gives you the best of all worlds with its approved manufacturer management.  It is easy to standardize on a manufacturer where customers will authorize the change.  It will also allow you to purchase and use only approved parts even if the customer will not change their approved manufacturers list.  It may even highlight a different, but more common, manufacturer among the total demand.
  
  

COMMUNICATION

• MRP Sharing - Using custom triggers and reports, or sharing some of the standard reports, you can automatically update your suppliers with the latest MRP information in ManEx.  Additionally, it has many tools like "Open PO Status" and "MRP Horizontal Planning Summary" to keep your team updated on the status of current orders and demand.
  
  
• Customer Updates - Many ManEx users leverage the "Customer Order Status" to quickly provide information to their customers on the status of their jobs and potential production and material delays and issues.  ManEx also has numerous reports to provide updates on the status as well.
  
  
• Internal Communication - ManEx offers numerous internal note fields and automatic notifications to aid internal communication.  This makes it easier for shifts to communicate with each other, down stream departments to know what is coming and what issues they have encountered, and each department to take accountability for their work and quality.