Electronic Component Inventory Management

In an effort to streamline electronic component procurement, manage the long lead-time items, and most importantly, reduce cost; a strong excess inventory management system should be employed in conjunction with PC Assembly builds.

Let’s examine the (potentially alleviated) costs incurred by buying components only as required over the life of a PC board:

  • multiple purchase orders (internal personnel costs)
  • multiple shipping costs
  • multiple handling, inspection, and documentation of components
  • unexpected shortages due to component manufacturing fluctuations
  • unanticipated component obsolescence

In addition to saving internal labor and processing costs, there is also the value of purchasing at a higher volume and having longer reaction time to shortages or component obsolescence.

Inventory management of electronic component excess materials will have costs associated with the processing involved, but those costs can still reflect a major savings over procuring components on a “as needed basis” for PC assemblies.

The next task involved in evaluating the use of inventory management processes for excess materials, is in understanding the potential savings to justify the investment of the materials upfront. The evaluation will need to include:

  • how many printed circuit boards are required each year?
  • multiple boards with common components?
  • what is the current PC build schedule?

If you are interested in having an evaluation performed, please let me know. Call (530) 626-6168 or send me a note Cherie@CIC-Inc.com