My supply chain learnings (so far)

You are not an island.

Supply chain consultant Supply chain management firm

Hardware accelerator COO/Director of Operations

Full-service supply chain management firm Source CM

Negotiate terms Source components

Boots-on-the-ground manufacturing support Distribution & fulfillment

Sourcing the CM with a global supply chain model

Objective: To compare landed cost and supply chain response to time differences from manufacturing in

different locations.

1) To understand tradeoff, if any, between shipping time & cost 2) To understand relative importance of different cost components

(materials, VAM, transportation, inventory)

Assumptions:

1) Consolidated the BOM as follows:

2) Packaging will always be $1 3) Electronic components always come from Shenzhen, but board assembly takes place at final assembly location (CM)

Estimated assembly & test times + overhead costs based on info we provided. Base-case estimate is for Shenzhen:

We chose 5 global locations to model out:

DL/hr $ = Fully loaded direct labor rates

FOB / “Ex-works” costs by assembly location

Total cost v. delivery time

Supply chain response time

China isn’t always the answer.

Total cost comparison

CM tour Visited 6 in Mexico

Focused on category expertise, DFM services, testing capabilities & copy-exact facilities

Terms negotiation Takes forever

Pre-payment terms are high for startups Force them to be accountable

Where our supply chain is now: Cost-reductions

Manufacturing validation & ramp-up 3PL sourcing

Searching for a director of ops

d@gotenna.com