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Contract Manufacturing Solution Group
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Mission:
[Organization]
[Articles]
To support Hong Kong electronic industry and AHKEA Total Solution
Scheme with a good quality, on time and cost effective electronics
manufacturing services.
Objective:
To promote the image of Hong Kong EMS who play a important role on
the Worldwide Contract Manufacturing business
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Chairman:
Mr. SL Law - Senior Principal
Consultant, HKPC
Vice-Chairman: Vacant
Members:
1. Suga Electronics
Limited - Mr. Jimmy Yeung, General Manager
2. CCT Telecom (HK) Limited - Mr. CH Tong, Managing Director
Ms Ella Chik - Materials Director
3. SAE Magnetics (HK) Limited - Mr. Horris Leung - Senior Manager
Associate Members:
1. Mr. Lee Ho Sang - Managing Director, BG Tech International Ltd.
2. Mr. Tetsuya Onishi - Managing Director, Grand Joint Technology Ltd.
3. Mr. Lawrence Law - General Manager, Philips (Beijing) Limited
4. Mr. Kelvin Cheung - Business development Director, Sanmina - SCI
5. Mr. Henry Kan - Managing Director, Ray Electronics Industrial Ltd.
Article &
Reports
[Mission]
[Organization]
EMS in Asia Pacific and North America
Due to rapid use of internet service nowadays,
it
helps the development of Global Supply Chain/E-supply chain in US
electronics manufacturer can help eliminate the time gap between different
regional. Most of the US basic EMS will choose one or two component
suppliers as partner who will provide the total solutions on material
sourcing, MRP/bonded inventory program, JIT service and logistic
management under material management programs through EDI/Internet which
customer can direct access supplier’s inventory, bonded qty for some
specific items. Customers no need to keep any safety inventory
stock. There’s a bin system to draw supplier’s
inventory direct from their warehouse and transfer to customer’s inventory
by using special bin code. By weekly, bi-monthly, monthly statement
billing under EDI invoice and EDI remittance/electronic fund transfer for
payment. Actually, the advantage of this material management program can
increase flexibility/cash flow as well as decrease risk, inventory and
manpower from developer in order to put more afford on design and new
project’s development. However, under this system, customer must decide to
choose who become their master component supplier at beginning stage. The
material cost sometimes may be not competitive due to value added service
must be considered at the time being. Therefore, it is depends on the
product nature to gain the advantages from this material management
program especially it is more suitable for the majority items which is
commonly using on other projects with stable monthly requirement.
Actually, the concept for this program is good and
the direction is correct. However, most of the EMS at Asia Pacific are
transferred projects which sources and consumption mostly are decided by
the developer . Basically for these transferred projects, the major
factor concerns from end customer is how to get competitive price, lowest
labor cost with acceptable quality. Therefore, in order to achieve the
lowest material cost, price comparison and analysis with different
suppliers still carrying on. Bigger quantity purchases will be required
from the Asia Pacific region. So Asia Pacific EMS can offer a cost
effective price than US EMS but they will require a bigger quantity.
In fact, besides of the transferred project, Asia
Pacific EMS also providing re-engineering and localization component
sourcing in order to achieve cost reduction. At the same time R&D also
providing a lower service cost which is also an advantage for Asia Pacific
EMS.
Mark Fung
Ex-Chairman of Contract Manufacturing Solution Group
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