Global SCM (Trading and International Procurement Office)
Global Procurement
Speedy and Stable Procurement through Our Global Supplier Network
Our procurement activities are centrally controlled by utilizing reliability of Sumitomo Corporation to ensure bulk purchasing. Depending the place of origin, costs and lead time, we select the best location for customers’ applications from our partners.
Advantages of Bulk Purchasing
Utilize the purchasing power of Sumitomo Corporation’s credit capability to ensure bulk purchasing.
Overall procurement activities are centrally controlled.
Alternative Proposal
We can propose replacement to a non-Japanese (ex. Taiwanese, Hong Kong, and Chinese) alternatives from our delivery experience for Japanese customers.
Direct Purchase at the Place of Origin
Purchasing from optimal location per site depending on the place of origin, cost, and lead-time.
For example, we enable to minimize your administration cost, distribution costs and foreign exchange risks by purchasing key Japanese-made materials compare with your procurement by yourself.
Optimized Logistics
Optimized Logistics with Our Network and Warehouse for Electric Components
We are able to achieve low-cost, efficient delivery by utilizing our global network and we collectively transport parts of multiple customers to our overseas. We are also able to reduce inventory and improve cash flow with JIT delivery and warehouse operations.
A Globally Expanding Network
We are able to achieve low-cost, efficient distribution by utilizing our global distribution network and collectively transporting the parts of multiple customers to our overseas sites.
Reduce inventory by utilizing the duty-free/bonded warehouse operations and JIT delivery
We utilize our duty-free/bonded status in our warehouse operations at our overseas sites. We procure electronic parts from our overseas suppliers, import them on duty-free/bonded status, perform incoming inspections, store the parts in a temperature-controlled specialized warehouse, and have them ready for delivery in any quantity at any time for our customers and manufacturing partners. For example, in Thailand we were the first to obtain an IPO license for duty-free importing of electronic parts for re-exporting purposes. The license allows us to reduce the man-hour involved in import customs clearance and duty-free procedures, and store not only PCBA/electronic parts but also mechanical parts on duty-free status and provide JIT delivery of these parts. We also provide VMI operations.
Duty-free/bonded status
| HongKong/Shenzhen | Processing with customers’ materials / Processing with imported materials |
|---|---|
| Shanghai/Suzhou | Waigaoqiao Free Trade Zone (Transit Trade After Processing) |
| Thailand | BOI Duty Free Status for IPO |
| Philippines | PEZA |
| Indonesia | GB |
| Mexico | Maquiladora |
- Reduce inventory, and minimize storage
- Reduce man-hour involved in import customs clearance
- JIT delivery of not only PCBA/electronic parts, but also various mechanical parts
An added-value logistics design
With a firm grasp of the distribution circumstances and taxation system of each country, we implement a logistics design that best meets the regulations in each country. Moreover, we establish logistics designs which take into consideration tax saving, such as importing on duty-free/bonded status and Value-Added Tax (VAT).
Meticulous support
Detailed Support
Business Support through Comprehensive Strength of Sumitomo Corporation
Localization Support
In order to improve the efficiency of overseas production sites, it is necessary to localize, where operation is primarily under local staff. As we continue to develop on a global scale, we provide support for building a business framework most suitable for the location of our customers’ production sites and increasing efficiency.
We provide complete support by having our local expert Japanese staff communicate with our customer’s Japanese staff, as well as having our technical expert local staff communicate with our customer’s local staff.
Improving Customers’ Cash Flow by Trade Finance
The administration of overseas production sites not only involves field operations such as procurement/purchasing and manufacturing, but also treasury operations. We provide support for both field operations and treasury operations such as payment to suppliers, foreign currency exchanges, and overseas remittances.
Comprehensive Support for Overseas Operations
As a member of the Sumitomo Corporation Group, we provide complete support for our customers’ overseas businesses in various cities worldwide. For customers that would like to expand overseas but are concerned about infrastructure, we introduce the overseas industrial complexes that are developed and distributed by the Sumitomo Corporation. We not only provide information, but provide support for establishing a local business, preparing production facilities and materials, and other logistical matters. We are sure that the scope of the kinds of support we provide will exceed your expectation.
Production and Solution
IPO & VMI Business
We sell materials at a low price through our global material procurement capability (optimal location procurement) using Sumitronics’ mass purchasing power. Kitting support for the customers’ production schedule is also available.
Outsourcing Business
Sumitronics faithfully follow your operation by appointing your designated route of procurement and plants.
EMS Business
We realize low prices and high quality at the same time by strategic optimization of material procurement and distribution routes through integrating yours and Sumitronics’, undertaking production at a plant best suited to the application. We provide you wide-ranging support from PCB Assembly, sub assembly and design to finished products.
FAQ for Customers
Production outsource / Overseas Production / Cost Reduction
Need to reduce the cost of material.
Sumitronics, using our value engineering/value add processes, will provide optimum pricing solutions to address your material cost reduction requirements. Using our material sourcing options, Sumitronics will compare your current pricing to our global source pricing to provide you with the most cost efficient source. Sumitronics can also provide you with alternatives that may additionally save you material costs
Need to reduce manufacturing costs.
Sumitronics, evaluating your needs with our multiple factories, will propose our best factory solution for meeting both your production and market strategies. Each site’s technical team will, thru value engineering and value add processes, develop and create the most efficient and cost effective manufacturing process thereby ensuring you the lowest cost and highest quality.
Need to reduce our inventory. Need to introduce Just in Time (JIT) / Vendor Managed Inventory (VMI) process controls.
Sumitronics’ material procurement system is based on JIT and VMI systems. Our product ordering system ensures we maintain the lowest level of inventory that meets your expected and potential upside production requirements. Our procurement processes ensure that as the product life cycle approaches the end of life, your inventory levels reduce to match your production forecast.
Need to introduce production outsourcing or transfer production to another country.
Sumitronics will provide you a custom transition plan that has been optimized specifically for your material, production and logistics of your finished goods. This is for both the start of outsourcing or the need to transfer production throughout the world. Utilizing our vast supplier network for electronic components, mechanical assemblies, molded parts, etc. while supporting your need for global supply, Sumitronics and our parent, Sumitomo Corp., will help establish your production in Asia, North America or Europe.
Need to implement production in multiple countries at the same time.
As your sales and marketing needs grow, so will your manufacturing requirements. Sumitronics, not only offering one stop operation at a single facility, we also provide this same custom service within our multiple manufacturing facilities throughout the world. With our global integrated manufacturing approach, we can develop the most efficient and cost savings processes utilizing multiple facilities, limiting inventory and maximizing your logistics requirements thereby supporting your end customer’s needs.
Need to procure finished goods by low cost logistics which optimized tax merit of each country.
With our accumulated knowledge of domestic and bonded trade zones, foreign exchange, finance and accounting/taxation, Sumitronics can develop an optimized logistics process that will include cost savings and shortened lead times in support of your manufacturing strategy. We are experienced in RMB based trade and the use of Bonded trade zones in China.
Need to include design/procurement of assembly and testing fixtures for our product.
Sumitronics has internal capabilities and external partners to design and manufacture Assembly, ICT (integrated circuit test) and FFT (final functional test) fixtures at each of our facilities. We can provide this service according to your product needs. This service allows for quick support and lower cost for our customers.
Problems with multiple outsourced suppliers.
Inconsistent pricing across my supply chain.
Sumitronics’ material procurement processes allow us to assume the procurement operations from each of your current suppliers. Sumitronics can procure, stage and unify orders to ensure you obtain best pricing. Sumitronics long standing relationships with hundreds of suppliers and our financial stability and creditworthiness ensures we receive the best possible pricing.
Suppliers continue to maintain excess inventory.
Sumitronics decreases your total inventory by planning and maintaining minimum material quantities that meet your production requirements. Our use of JIT/VMI processes with each supplier ensures a decrease in the financial burden placed on your supplier and reduce your total liability due to potential excess material.
Suppliers have unsatisfactory on-time delivery performance.
Sumitronics procurement and logistics organizations will support and instruct each supplier on how to improve product on-time delivery performance and data management. Our organizations will start at the beginning of the suppliers operation and work with them through each process to improve their delivery performance.
If so desired by our customer, Sumitronics can suggest alternate Sumitronics approved suppliers that will meet your specific requirements.
Suppliers have unsatisfactory product quality.
Sumitronics quality organization will support and instruct each supplier on how to improve product quality.
If needed, Sumitronics can suggest alternate Sumitronics approved suppliers that will meet your specific requirements.
Business activity in Japan
Need to make test production in Japan which shall be under mass production at overseas factory.
With Sumitronics shared global platforms, we can support testing and preproduction operations in Japan and facilitate a seamless transition of these Products to a factory/country of choice. We can also provide this in reverse.
Need to setup meeting in Japan for mass production at overseas factory.
Sumitronics Japan can support/coordinate global conference meetings with all factories. This can be coordinated at your factory or at Sumitronics Japan facilities.
Others
Need to get support after production, not only mass production.
You can count on Sumitronics to provide full service through start up operations, full production and after-sales and service operations (including materials supply). We will support you and your product through its entire life cycle.
Need to activate our own business route partially. Can we mix Sumitronics logistics and our own logistics?
You can contract with Sumitronics to handle your commercial distribution. Sumitronics also designs an efficient commercial distribution and logistics process that may save you time and money over your current distribution system.
Though, we don't have overseas office or factory, we need to reduce production cost by manufacturing our goods at overseas factory. Can Sumitronics serve us Out- In/Out -Out?
Even if there is no overseas bases, Customer is the potential savings and overseas production by entrusted to Sumitronics. I will support you in Japan meeting. We will respond to your request OUT-IN/OUT-OUT, various.