It’s not as simple as selecting a vendor from a catalogue when it comes to finding the right supply chain partner in Europe’s electronics sector. It’s more like picking a business partner: the reliability, ability and values of your partner will impact directly on your capacity to deliver products on time, at quality and without the kind of shocks that keep operations managers awake at night.
The choice of electronics is quite vast in Europe, but the vastness can make it harder, not easier. What then is the key when it comes to assessing prospective partners? Let’s take a realistic approach to the things you should consider.
Technical Depth & Manufacturing Capabilities
First of all, the obvious but overlooked: Are the technical skills of this partner right for the work you need?
As obvious as it may seem, many companies get burned by thinking that if they offer a wide range of services, then they know what they’re doing. A partner could include PCB assembly, cable manufacturing, and enclosure fabrication on their site, but have a much deeper expertise in one of these fields.
Ask specific questions:
- How much tolerance can they tolerate?
- What are some of the common component sizes with which they work?
- If your project requires high-density assemblies or multilayer board assemblies, you want a partner who is accustomed to handling these assemblies day in and day out and not just every so often.
If the acquisition of sub-components is involved, think about the source of those components. For example, a good PCB Manufacturer in Romania can provide cost-effective solutions with good technical standards and Romania is becoming a more and more recognized hub for electronics manufacturing in the EU.
Quality Certifications and What’s Behind Them
Certifications are good but just a beginning point, not the finishing line.
- ISO 9001 indicates that a company has written quality management procedures.
- IPC standards (IPC-A-610 for electronic assemblies, for example) show compliance with industry workmanship standards.
- The IATF 16949 is a very meaningful standard for automotive electronics.
It’s the culture behind the certificate that you want to understand. On initial discussions, enquire about their approach to non-conformances. What do they do to record the root cause analysis? How do they deal with a batch that did not pass inspection? A quality partner will give you clear and honest responses to the following questions. If a partner fumbles them, or gets on the marketing side of things, it’s a yellow flag that should be noted.
Supply Chain Transparency & Component Sourcing
The electronics supply chain has proven to be highly vulnerable in recent years. Production delays in industries followed the component shortages. How well your partner can deal with that kind of disruption and how well they can be honest with you when it happens is a huge factor.
Here are some good questions to ask:
- Where do they get their parts?
- Do they have preferred distribution relationships?
- What do they do with EOL (end-of-life) components or last-time buys?
- But, and here’s the big one: will they get in touch with you ahead of time if a particular component’s lead time changes, or will you only hear about it when your deliverables are behind schedule?
Some partners have their own procurement teams who actively manage their component availability. Some are totally dependent on customers for material supply. Both models are correct, but you must be aware of what you are using.
Experience with Complex Assemblies
Not all electronics manufacturing is the same. While a company may be great at simple through hole PCBs, they might not be so great when it comes to complex wiring integration or mixed technology assemblies.
If you are designing a product that requires Electrical Wiring Harnesses, the type of interconnect systems found in industrial machinery or medical devices or transportation applications, you should make sure your partner has real experience in assembling or designing the harness to your specific requirements, to include strain relief, labelling and testing.
Request to view samples of comparable work. Communicate with their engineers, NOT only with their sales team. The level of communication you have with their technical staff will give you a lot of insight into whether they can deal with the “real world” issues of your project.
Logistics, Location and Lead Times
Despite the age of global logistics, geography plays a role in Supply Chain. There are a number of practical benefits of a partner based in the EU:
- No customs delays.
- More streamlined regulatory alignment (particularly for goods being sent to the UK post-Brexit).
- Easier site visits.
There should be open and early discussion of lead time. A partner with unrealistic time estimates for the contract in order to secure it only to delay the schedule later on creates havoc down stream. Seek out real life examples of delivery performance. If they do have on time delivery data, then it’s a good sign. If they’re unable or unwilling to share it, this is something to consider.
Also consider flexibility:
- If you need more of their product will they be able to increase production quickly?
- What is the smallest number they must order?
- Are they able to expand with you, if you go from prototype to low volume production to full production?
C0mmunication and Partnership Mindset
This is a bit more intangible, but it’s likely what makes the difference between a productive working relationship and a difficult one. What is the reaction of the company during the sales process? Are they sending you a generic quote or thoughtful questions about your product and needs?
Take note of the way that technical questions are managed. Do you deal with engineers that know your product or with account managers that pass messages back and forth?
The ideal supply chain partners are like your own team. They are the ones who can raise any potential design for manufacturability (DFM) issues early, suggest alternate parts if a part is no longer available, and get the message across when they have a problem. That sort of proactive partnership is very unique and certainly worth the price for.
Compliance and Regulatory Alignment
The European regulatory climate is very strict with regards to electronics, and your partner should be 100 percent on board. Compliance with RoHS (restriction of hazardous substances), REACH regulations and CE marking requirements are not optional and problems in these areas can mean products are withdrawn from the market.
In a regulated industry such as medical devices or automotive, the requirements are even greater. Check that your partner has previous in dealing with the compliance structure your product is subject to. Remember, it’s not just about the paperwork, it’s about creating processes and buildings that actually meet the requirements of the rules.
Final Thoughts
While there is no definitive list of an ideal supply chain partner, the correct partner will show technical credibility, honesty in communication, quality processes and the flexibility to operate in the same manner as you grow.
Allow time for the evaluation phase. If feasible, go to their facilities. Communicate with their current customers. If you have to ask the hard questions, get it done early, before you are mid-production and you are stuck with them.
When it comes to electronics, there are some significant strengths in Europe: experienced manufacturers, regulatory clarity, and relative proximity to end markets. It’s worth the due diligence to find the right partner that can unlock those advantages.
