Case Study: Neo Tech Values Ease and Global Reach

| November 11, 2015 | 0 Comments
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world Map. Best Concept of global business from concepts series.Dayna Murphy, a senior buyer at Neo Tech, Inc., purchases a wide variety of electronic components – “everything from A to Z” – needed to build blood-testing devices and other medical equipment at her electronics manufacturing services employer’s San Marcos, Calif. facility, near San Diego.

Most of her customers’ supply-chain needs are handled through long-term material requirements planning programs with a select group of suppliers. That works well most of the time, but despite the best-laid plans and forecasts, sometimes things go wrong.

“Occasionally there’s a hiccup, which will cause a shortage,” she says. “Lead times can jump unexpectedly, or occasionally a vendor can’t fulfill the requirements because demand has exceeded the forecast. That’s when we have to go shopping.”

Murphy, who spent 30 years in distribution sales before switching to purchasing in 2012, is an expert in tracking down hard-to-locate parts. When shortages occur, she usually relies on online search engines to locate alternative sources. Sometimes the search process is easy, but other times it takes real detective work, which is further complicated by her customers’ caution about approving new suppliers. There is always concern, she says, about whether their parts are authentic, and safe for use in FDA-approved medical devices.

A couple of years ago, Murphy started coming across a then-unfamiliar electronic-commerce supplier called Verical.com. She finally went to her boss and asked “Hey, why don’t we have Verical? They seem to have a lot of stock when we’re out looking for it.”

Verical, she soon learned, is an online distribution division of Arrow Electronics, Inc. that maintains a large inventory of on-hand electronic components available for immediate shipment. She was impressed to learn that Verical offers fully warrantied and traceable factory stock parts from more than 500 electronic component manufacturers and franchised distributors worldwide. That, she says, and Verical’s relationship with Arrow, one of the world’s largest franchised electronic component distributors, convinced her to give Verical a try.

European parts access

Since then, Murphy says, most of the five to 10 orders she has placed through Verical have been filled by surplus factory stock shipped from suppliers in Europe. She’s impressed that Verical’s global reach has helped her to locate inventory in places she might not have normally been aware of.

Moreover, she says, all the parts she’s ordered through Verical have arrived as promised, brand new in the box, with either factory certificates of conformance or other evidence of authenticity. “We’ve never had an issue with documentation,” she says.

The ease of Verical’s purchasing process is another plus. “We’re able to either phone it in or place the order via the Internet,” Murphy says. “We get an immediate acknowledgement email. And then we get a follow up email that the item is shipping. And in terms of order execution, they turn it around in 24 hours.”

Lastly, she appreciates Verical’s accommodating payment terms. “I don’t have to do COD, pre-pay, or buy by credit card. I get to put it on account with our normal terms,” she says.

Overall, she says, Verical has been a welcome addition to her supplier list. “They’ve been great to deal with,” she says. “I haven’t used them very much, but the times that I have, they saved me big time – bailed me out when I couldn’t find the parts elsewhere.”

  • Verical customer profile
  • Company: Neo Tech, Inc.
  • URL: www.neotech.com/
  • Headquarters: Chatsworth, Calif.
  • Employees: ~3,500
  •  Business:  Neo Tech was formed by the April, 2015 merger of NATEL Engineering Company and OnCore Manufacturing Services. A mid-size electronics manufacturing services (EMS) provider, it has operations in 14 locations across the U.S., Mexico and China.
  • Customers: Neo Tech manufactures products for clients in the medical, industrial, energy, aerospace and defense industries.
  • Why Verical?: Global parts availability, ease of use.

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Category: Smart Purchasing

About the Author ()

EPS contributor Russ Arensman is an award-winning freelance writer and editor whose work has appeared in numerous U.S and international business and technology publications over the past three decades. He covered the semiconductor industry for nearly a decade as both a staff and freelance contributor to Electronic Business magazine. During most of the 1990s he worked as a journalist in Hong Kong, where he helped to launch Electronic Business Asia magazine and later the monthly business magazine Asia Inc. Previously, he worked as a reporter and editor for several newspapers in Colorado. His professional honors and awards include a National Silver Award in the American Society of Business Press Editors’ annual Editorial Excellence Competition for an October 1998 Electronic Business article profiling Idaho-based Micron Technology and its CEO Steve Appleton.Russ earned a bachelor’s degree in technical journalism from Colorado State University in 1981 and lives in Glenwood Springs, Colo. He is available for freelance writing and editing assignments, as well as corporate editorial projects, including articles, press releases, white papers, case studies, speeches, blog posts and market research. He can be reached at: arensman@rof.net

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