The RESCO Electronics Blog

China Tariffs: Potential of a Big Impact

Posted by David Copenhaver on Aug 1, 2018 4:12:05 PM

No doubt most of you are aware that the US placed a 25% tariff on certain electronic components and other products manufactured in China effective July 6, 2018.  These tariffs were announced last month by the US Trade Representative (USTR) and are being imposed pursuant to Section 301 of the Trade Act of 1974 in retaliation for what the US views as the unfair trade practices of China.

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Topics: Supply Chain and Procurement Strategies

The Benefits of Selecting the Right Contract Manufacturer

Posted by Carlo Capizzi on Sep 13, 2017 9:40:00 AM

There are many benefits to working with a contract manufacturer (CM).  As a result, many companies are finding plenty of reasons to outsource their production to another entity…and with good reason.  Although outsourcing production may have risks, these risks can be minimized by carefully selecting a CM that complements your company’s core competencies.   When deciding on a CM, you should weigh the benefits and associated risks. 

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Topics: Supplier Selection, Supply Chain and Procurement Strategies

Finding a Manufacturing Partner that is the Right Fit

Posted by Charles Fisher on Jul 12, 2017 9:35:00 AM

Most of you reading this will have purchased a home at some point in your life. In many respects picking a contract manufacturer for your company to partner with is a similar experience. You are making a major decision that can have a major effect for years to come and you have multiple stakeholders who all have different ideas about what is the best fit.  At the end of the day, you need to differentiate your “must haves” from your “would likes”.  And just as importantly, project what your must haves are going to be in the coming years.

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Topics: Supplier Selection, Supply Chain and Procurement Strategies

Reshoring of Manufacturing

Posted by Deborrah Chilcote on Jun 14, 2017 9:30:00 AM

The Downfall

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Topics: Manufacturing in Mexico, Supplier Selection, Supply Chain and Procurement Strategies, Quality Control

Benefits of Supplier Consolidation

Posted by Kelly Grato on May 10, 2017 9:30:00 AM

Vendor consolidation, also known as vendor rationalization, is one of the methods companies use to improve operational efficiency. Electing to choose from a limited pool of trusted vendors
 has enabled companies to build stronger and more collaborative relationships that deliver a range of benefits to the organization, including: lower costs in relationship management, lower administration costs, less risk to the business, increased quality and speed in delivery and improved supplier responsiveness. 

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Topics: Supplier Selection, Supply Chain and Procurement Strategies

Mexican Manufacturing: Good for American Jobs

Posted by David Copenhaver on May 11, 2016 9:00:00 AM

Now that we are in the middle of a Presidential campaign the rhetoric is flying on a whole host of issues.  This election cycle the issues of trade, trade agreements, and American jobs have become some of the most hotly debated.   My intent in this blog is not to make a political statement but rather to offer a perspective regarding trade with Mexico that has been all but drowned out by the political fervor.   I want to share with you why I believe that our trade relationship with Mexico has actually helped preserve and perhaps even grow jobs in the US.  Although I will cite a few statistics and comments from experts below, my belief fundamentally comes from what we at RESCO see taking place at many of the US manufacturers that we support.

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Topics: Manufacturing in Mexico, Supply Chain and Procurement Strategies, Supplier Selection

Time to Consider Kanban

Posted by David Copenhaver on Feb 10, 2016 11:00:00 AM

Of all the different inventory management systems in which we have had the opportunity to participate, kanban may be the most consistently effective; especially from the manufacturer’s point of view.  At RESCO we have supported vendor managed inventory, consigned inventory, bonded inventory, and a variety of dock-to-stock programs.  But consistently the kanban based systems have been the easiest to manage and the most consistently effective.

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Topics: Supply Chain and Procurement Strategies, Supplier Selection

Net Big Savings by Outsourcing Higher Level Assemblies

Posted by Charles Fisher on Jan 13, 2016 9:02:00 AM

In today’s competitive market, every company is looking for a cost advantage.  Sometimes that edge comes from working with your contract manufacturing partners to develop a lower cost design, other times it comes from finding off shore sources for sub-assemblies, or perhaps it comes from implementing cost saving inventory replenishment programs.   But what happens when these strategies are exhausted or just don’t generate the savings you need?  One often overlooked option is to work with contract manufacturing partners that can build higher level assemblies.  A few contract manufacturers like RESCO Electronics can take advantage of their lower cost structures, lower cost manufacturing facilities, and electro-mechanical expertise to lower your total costs by doing just that.

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Topics: Supply Chain and Procurement Strategies, Supplier Selection

The Best Procurement Decisions Are Based on Total Cost of Ownership

Posted by David Copenhaver on Nov 23, 2015 8:14:25 AM

The concept of total cost of ownership or “TCO” is to determine a product’s true cost not just based on the price but on all the costs it takes to purchase and maintain the product during the entire time it is owned.  This is hardly a new concept and most of us apply it in our personal lives, knowingly or not, each time we make a major purchase.  For example, when we buy a car we want to know the price of the new car, the trade in allowance on our old car, the taxes at time of purchase, ongoing taxes and insurance, gas mileage, maintenance costs, and maybe even the amount we can sell it for when we are ready for another.  In fact, almost all of the on-line car research sites (Edmunds, Kelly Blue Book, and Consumer Reports to name a few) calculate the expected TCO for about every model out there.  There is little doubt that TCO is an effective tool when making a purchase decision on a major, long-lived asset…but is the concept equally effective when comparing competing offers from material suppliers?

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Topics: Supply Chain and Procurement Strategies, Supplier Selection

Strengthening Dollar Makes Now the time to Consider Mexican Production

Posted by David Copenhaver on Aug 27, 2015 8:52:00 AM

In a blog posted last spring on this website titled "When Does Contract Manufacturing in Mexico Make Sense" Fred Morr provided a great review of the circumstances our experience has shown that selecting a contract manufacturer with production in Mexico is the most advantageous.  Fred compared and contrasted domestic contract manufacturing with production in Asia and Mexico.  He included a simple table which I am providing again below that is a great first pass reference tool.  If you haven’t had a chance to read this blog I encourage you to do so.

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Topics: Manufacturing in Mexico, Supply Chain and Procurement Strategies, Supplier Selection