In-Plant Stores

SMTC partners with our key Electronic Component Distribution and implement In-Plant Stores in our manufacturing locations

These in-plant stores (IPS) are operated by the distribution partners and all material sourced with key distributors are pipelined through the stores.  The inventory is owned and managed by the on-site distributors.  Components which are NCNR (Non-Cancellable Non-Returnable) have complete liability but have some level of flexibility for delaying inventory ownership. Non-NCNR components have no liability and 100% flexibility.  SMTC initiates the pull from the store once the product is scheduled to be built (24 hours before build date).  SMTC takes ownership of the inventory when the pull has been transacted.

In-Plant Store Benefits

Lower Risk Profile

  • Inventory ownership window substantially reduced (72 hour pull window)
  • Avoids build up of a large number of line items
  • On site distributor staff speedy communication and execution
  • Reduced waste and inventory shrinkage

Responsiveness

  • Ability to dynamically scale to demand changes and mix changes
  • Maximizes leverage of world class inventory management systems

Proximity

  • Two to four weeks of product resides at our physical location
  • Increased velocity on order cycle time
  • Product is more secure than electronically bonded inventory at a centralized warehouse

SMTC Site with In-Plant Store

  • Chihuahua, Mexico