General Comment regarding Free Issue Material:

Errors within kits of components supplied to us by clients as free issue kits are the single most frequent cause of production delays. We advise Clients to open every package received from distributors and to check the contents are exactly as ordered before onward shipment. Our assumption is that client supplied kits are correct. We cannot guarantee to identify wrong components. We will use our best efforts to report errors to clients, however we cannot be held responsible for incorrectly Client identified material.

Benefits for client when supplying free-issue kit:

• Parts are potentially cheaper.
• Client selects suppliers of components.

Disadvantages to client when supplying free-issue kit:

• Client has impact on cash flow, due to procuring components from supplier earlier.
• Client needs to check parts for correct delivery quantity, chase shortages, check labelling, condition of components, part references, etc.
• Client has to deal with any errors, returns, etc.
• Client must chase shortages.
• Client must supply extras, i.e. generally, 5% additional parts to cover production losses.
• Client has risk of purchasing faulty “grey” market components.
• Client has risk that wrong parts supplied will be fitted, with rectification at client’s cost.
• Client has administration cost of setting up supplier accounts, ordering, and paying on time.
• Client has responsibility for administration and maintenance of component traceability records.
• Client has responsibility for ensuring components are supplied in anti-static packaging.
• Client must pack and onward ship complete kit.
• Client has responsibility for the consequences of incorrectly supplied parts, including the cost of rework (if required).

Our Full Procurement Service:

• We only use approved component suppliers.
• We check part availability, re-negotiate or re-source if necessary.
• We do not use grey market suppliers unless requested to do so by clients.
• We offer choice of alternative parts to clients where appropriate.
• We rigorously check that client part numbers and descriptions agree with supplier part numbers and descriptions, and report / resolve discrepancies.
• Our good inwards check every part received for correct markings, correct labelling, and correct quantity, against our BOM.
• We chase shortages.
• We maintain full traceability of parts supplied.(When required)
• We take responsibility for the fitment of correctly sourced parts. Re-work (if required) will be at our cost.
• We maintain components in an anti-static environment.
• Component costs are only charged when we invoice for completed assemblies, thus client’s cash flow is improved.