A UK-based contract manufacturing business responsible for producing complex printed circuit board (PCB) assemblies is one of our regarded customers. The firm’s quality-demanding clientele ranges across the automotive, defence, aerospace and oil and gas industries.

The firm has a very high capital expenditure – always investing in the latest placement technology to maintain its position at the forefront of PCB assembly. Their focus within the research of new PCB and assembly technologies has led to a very successful manufacturing business, with the potential to grow further by continuing the technical investment.

The contract manufacturer recognised they could continue to grow their profitability with a targeted focus on core technical strengths. By outsourcing supply chain management distractions, such as supplier and stock management and price negotiations, the firm had more time and resources to help their business grow.

The company was introduced to Vanilla by a franchised distributor in 2014. We set the initial goals of outsourcing procurement, improving material cost and being able to receive products in the form of a production-ready kit to reduce operator time. These goals we quickly realised, and our customer recognised instant improvements in their own inventory as well as their end-customer service levels. They were able to turn assembled boards around quicker and increase their own margins through reduced overheads and material costs – the manufacturer could start charging more for faster service.

We continued to develop the relationship, learning from each other and we could both improve our own services. We developed software that would integrate to their smart feeders and improve product traceability, and held consignment stocks of common items at the customer site to improve feeder change over for certain projects.

Our supply chain strategy has enabled the customer to:

  • Continue to grow their business and improve profitability
  • Continue to allocate cash and resource to equipment investment, rather than purchasing resource
  • Reduce inventory, with the average customer stock turn being less than 12
  • Improve working capital
  • Reduce assembly time and improve end-customer service
  • Reduce part cost
  • Improve traceability
  • Improve scalability
  • Offer bill of materials (BOM) management tools to their end customer
  • Improve sales development through focussed partnerships, using our procurement expertise
  • Add true value to their own end-customers, providing the comfort of a dedicated, professional and focussed supply chain.

The manufacturer has continued to grow and continues to be a powerful partner to Vanilla.

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