Lexington, KY -- SMC and Note AB have joined forces to establish an International Procurement Office (IPO) in Shenzhen. Both companies are partners in the ems-Alliance, a group of select EMS providers from around the world.
“Forming an IPO has been a goal for SMC since joining the ems-Alliance in 2003,” said Craig Schuster, SMC COO. “Through our established relationship with ems-Alliance partner Note AB, and strategies developed by the Alliance supply team, SMC was able to open an IPO in late 2005 in Shenzhen City, Guangdon Province, Peoples Republic of China.”
The day to day operations of the IPO are run by general manager Derek Teagle of Note AB. Teagle works with a staff of six English speaking Chinese nationals, consisting of buyers and engineers, who represent SMC and Note AB in sourcing manufacturing components in the Pacific Rim, most heavily concentrated in the low-cost region of China. They currently source custom build-to-print products such as: PCBs, cables, wiring harnesses, metals and plastics. They can also source relays, connectors and transformers.
Once the IPO locates a new supplier they must then go through an evaluation phase. The IPO office works to evaluate, qualify and approve a custom supplier prior to any purchases. On-site visits are mandatory for each new custom supplier.
SMC’s purchasing department then takes over and makes the actual purchase of the components and uses their previously established logistics companies to ship product. SMC is currently purchasing approximately 10% of their manufacturing materials off-shore.
SOUTHFIELD, MI — DENSO announced a new five-year North American Environmental Action Plan that takes effect in April and will serve as a roadmap for North American environmental activities.
“We recognize that while automobiles are an essential part of our daily lives, they do have a negative impact on the environment,” said Mitsuo “Matt” Matsushita, DENSO International America president and CEO. “We believe it is our responsibility to do everything we can to reduce that environmental burden.”
The environmental action plan is organized into four categories: Eco Products: develop products that are lightweight, energy saving and consider environmental improvement. In all of its products, the company will reduce its use of resources; control and reduce environmentally hazardous substances such as mercury, cadmium and hexavalent chromium; and integrate environmental planning into product design. Eco Factory: work to reduce the environmental impact of its manufacturing facilities (including manufacturing and distribution) through reduced water use (to 50% of 1999 levels); reduced CO2 emissions (by 18% in manufacturing facilities and 6% in other facilities); reduce landfill waste to 75% of 1999 levels; and reduce hazardous substance emissions by decreasing manufacturing facility regulated emissions volume to 30% of 2000 levels. Eco Management: develop environmental action plans and reinforce environmental partnerships with suppliers through activities such as developing green procurement guidelines and promoting the purchase of environmentally friendly products. Eco Friendly: encourage and support employee environmental activities; offer proactive information disclosure and communication with stakeholders; offer environmental education, and environmental and social contributions.
“Our ultimate goal is to prevent global warming, recycle resources and reduce environmentally hazardous substances,” said Matsushita. “That is how we’ll measure our success rate in each of these four key areas.”
Japan-based DENSO Corp. employs more than 15,000 people in the Americas at 33 companies with sales for fiscal 2005 totaling US$5.4 billion.
SAN JOSE -- Sales of communications equipment
sales reached $309 billion in 2005, topping the $300 billion mark for the
first time, research firm Electronic Trend Publications reported, led by sales
of cellular handsets.
Through 2010, outsourced manufacturing will grow nearly twice as fast as
in-house manufacturing, ETP said. "Outsourcing will prove to be most popular for
commodity and high-volume products for which cost reduction and time to
market are important. Demand for in-house production of communications products
will remain solid but uninspired, and dominated by Asian OEMs that
prefer not to subcontract."