A Sonic Differentiator – Electronic Component Sourcing
Conventional wisdom is rarely wise. Nowhere in business is
this truer than the manufacturing supply chain. Bloated processes, patched
software solutions, and erroneous data distribution create longer lead times,
embarrassing demand forecasts, and higher purchase price variances.
An Agile Approach Breaks the Cycle of Repeated Defeat
Sonic Manufacturing Technologies has addressed each of these
pain points over the last twenty years. Developing innovative and truly agile
solutions that turn historical problems into modern production opportunities is
how we consistently manage to beat our competitors.
By taking a sledgehammer to conventional wisdom, Sonic Manufacturing
Technologies has built a product assembly line that extends way beyond the
factory floor. In fact, it spans the globe.
Sonic Shifts the Paradigm in Electronic Manufacturing Processes
What sets us apart is consistent innovation. Although the
terms we use are familiar, the approaches we employ aren’t. We’ve managed to
develop an electronic component sourcing and manufacturing system that’s
adaptable to change, long thought of as a fallacy in supply chain logistics.
How Sonic Automated Adapting to Change during Manufacturing
We have embraced technology from the start. However, rather
than following suit with other electronic component manufacturers, we
understood early on that data integration with all upstream and downstream
channels could positively influence every aspect of the process.
By adopting application programming interfaces (APIs) early,
developed HAL. This self-correcting database provides autonomous change
control and order processing. As the information that informs the manufacturing
process and delivery cycles changes, HAL takes control and keeps our facility
processes up to date.
HAL enables Sonic to place a million parts per week. It does
70% of our material purchasing while key resources remain informed of changes
and updates to schedules. It routes key decisions to the role players while taking
the brunt of the necessary process control labor required.
Covering the Four Key Elements of Agile Manufacturing at Sonic
In order to leverage the agile capabilities that drive their
rapid and adaptable processes, Sonic delivers a service that includes:
1. Modularization of Products and Processes
At Sonic, eight surface-mount lines operate at the same
speed indiscriminately of whether they are doing prototyping or assembling production
units. Our ability to adjust the design with accurate data and manufacturing
process instructions allows us to implement changes quickly
and in accordance with any demand cycle updates.
2. Using Technology Wisely
Technology provides many opportunities for automation, but
knowing what remains foundational to delivering consistently quality-checked
products is what defines a successful agile operation. Using HAL to free up key
resources means we solve problems quickly, enabling 50% shorter lead times on
half of the components we produce.
3. Informed and Capable Partnerships
Material sourcing from a capable pool of partners means any
assembly, repair, or prototype run is possible. Using the proximity benefits of
vetted OEMs, we source our material according to demand and can maintain a
continuous delivery pipeline.
4. Leveraging Knowledge
By speeding up the dissemination of the information that
drives the manufacturing process, you gain an advantage against any offshore
competitor. Lead times, notwithstanding a leaner sourcing and adaptive assembly
approach, lower the total cost of your product.
Real Agility Is Doing Everything Differently
At Sonic, we work with both small engineering teams looking
to launch a device as well as large assemblies with BOMs that run in the
hundreds (and our shipments that span the globe).
We serve the Bay Area, San Jose and Silicon Valley, as well as
Sacramento and Salt Lake City from our head offices in Fremont, California. Contact us today for
a quote to manufacture your next creative EMS solution.
Sonic Manufacturing Technologies Launches Instantaneous Procurement and Next Day Delivery
FREMONT, California USA, June 27, 2016
Sonic Manufacturing Technologies today announces the successful rollout of Supply Chains at the Speed of Light™; a data-driven supply chain integration that exchanges purchasing data within seconds of sensing demand and delivers components to our manufacturing lines the next business day.
Partnering with Digi-Key Corporation, the two companies tested the model in a live environment for two months; successfully delivering over one million components to Sonic the following business day. David Ginsberg, VP of Supply Chain Management for Sonic said, “Working together on this integration has allowed us to convert demand into confirmed orders within seconds, without human touch and at full fiber-optic network speed; hence “the speed of light” model. Digi-Key is the perfect partner for this level of integration as they are the world leader in the rapid delivery of in-stock components. Together, we negate the need for the forecast-centric models that many OEMs found constraining to their businesses due to long planning horizon requirements and their limited agility when adapting to near-term demand. The Speed of Light model substantially reduces forecast liability and E&O inventory costs, while increasing customer service levels, ‘JIT’ fashion.
“This is quite possibly the lowest-touch, highest-response supply chain model ever created in the electronics industry. In the near future we are rolling it out across our top suppliers with the realistic goal of reducing Sonic’s median component delivery to 1 day ARO.”
“As manufacturing continues to move towards an inflection point on how to respond to their customer’s demands,” Steve Vecchiarelli VP of Supply Chain at Digi-Key points out, “moving to a completely digital stock check/ ordering environment not only increases their customer’s time to market but drives up quality and customer satisfaction!” “Sonic has created a differentiated model leveraging speed and responsiveness to meet the ever decreasing time to market windows of their customers.” Dave Doherty of Digi-Key comments. “We applaud their efforts to link our systems to provide the real time access that today’s supply chain environments require”
award-digikey-sonicSonic CEO Ken Raab adds, “We have been successfully competing with offshore manufacturing and “low cost regions” for over twenty years. Supply Chain solutions that enable us to buy, build, test & ship while our competitors are still processing requisitions in purchasing give us a clear competitive advantage. By collapsing the time required to deliver products to customers as well as the physical length of the supply chain, costs are removed from the product which increases our value. We regularly win and re-win business on Total Cost of Ownership (TCO) comparisons globally; and our higher responsiveness matters when our customers’ customer demands product now.”
About Sonic Manufacturing Technologies
Sonic Manufacturing Technologies, Inc. (Fremont, CA USA), is a leading provider of Electronic Manufacturing Services (EMS) supporting many of the tech OEMs and startups of the Silicon Valley, San Francisco Bay Area (SFBA) and western United States. Sonic established its reputation on quick-turn high-complexity prototypes, NPI and production and has grown over the years to offer this same level of support on the sustained production of business and consumer products; including medical. With over 80,000 s/f of manufacturing space and 8 automated surface mount lines; we are perhaps the highest capacity EMS facility on the west coast. Sonic is privately owned & proudly operated by its executive management team. For more information go to www.sonicmfg.com
About Digi-Key Corporation
Digi-Key Electronics, based in Thief River Falls, Minn., is a global, full-service provider of both prototype/design and production quantities of electronic components, offering more than three million products from over 650 quality name-brand manufacturers. With over one million products in stock and an impressive selection of online resources, Digi-Key is committed to stocking the broadest range of electronic components in the industry and providing the best service possible to its customers. Additional information and access to Digi-Key’s broad product offering is available at www.digikey.com
Media Contact for Sonic Manufacturing Technologies
Vice President Sales and Business Development
Media Contact for Digi-Key Electronics
Marketing Communications Specialist
Tags: APICS, B@B, ECIA, EMS, ERP, SFBA, Silcon Valley, Supply Chain
Procurement Analytics Enabling Journey to Value
Making Procurement Relevant
In this report, the Innovative Data Leveraging (IDL) process was described in different contexts, but the common thread in each case was that it provided a data-driven approach to driving change. Of course, leveraging analytics is difficult without some prior investment in strategic procurement systems. However, the IDL approach can help organizations at all maturity levels build a solid path toward an analytics-enabled procurement, in their pursuit of value and excellence.
“Fueled by analytics, procurement can derive insight from disparate sources of information and uncover intelligence for competitive advantage. This paves the way for us to develop an even deeper understanding using cognitive technologies that will help us further transform the procurement landscape as we engage across our supply base and with business partners to unlock value from all types of data that have been hidden in the past.”
— Bob Murphy,
Chief Procurement Officer, IBM
Big data and analytics can have a truly transformative effect on procurement — and entire organizations. As companies continue to expand around the globe, supply chain complexity grows — and so does procurement-related risk. Forwardthinking procurement organizations can reduce complexity and risk by using analytics to capitalize on the wealth of data throughout the supply chain. The right analytics approach can provide real-time visibility and predictive insights to enable seamless collaboration with stakeholders across the business. With data analytics fully integrated into every process, procurement can lead the way to a brighter — and more profitable — future.
Fortunately, at Sonic Manufacturing Technologies, the HAL process as well as its automated procurement systems does exactly that and more. Take a moment to learn more about Sonic Manufacturing, its supply chain processes, as well as HAL, its automated supply chain solutions™.
“HAL procures over 30 million parts per year; spending millions of dollars with suppliers… and does it all without human intervention. This gives Sonic the speed to beat the competition in performance and the efficiency to win on cost.”
— David Ginsberg,
VP Supply Chain, Sonic Manufacturing
Tags: Procurement, Procurement Analytics