Circuits Assembly Online Magazine - SMC and Note AB Open Procurement Office in China

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.