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.”
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
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
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Tags: APICS, B@B, ECIA, EMS, ERP, SFBA, Silcon Valley, Supply Chain