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Keeping Cost-Savings at the Forefront in a Shortage Market

Posted by John Pallazola

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Feb 14, 2018 11:14:03 AM

Earthtron is now part of Advanced MP.png 

The electronic manufacturing industry is expected to remain in a shortage situation through the end of 2018. In an electronic component shortage market supply chain professionals are often pulled off of their core cost-savings and QC practices in order to procure an IC, FPGA, or even a passive component that is causing a potential line-down situation. When we analyze your entire BOM we look to fill your shortages but also to lower your overall COGS (Cost of Goods Sold) and we ALWAYS maintain the highest QC standards so you don’t have to sacrifice one for the other.


To help our OEM and EMS customers increase their profitability and reduce component cost, Advanced MP Technology (AMPT) provides Cost Reduction Programs (CRP) customized to fit our individual customer’s needs.


This information allows our customers to make key decisions on:

  • Volume component buys
  • Performing life-cycle cost analysis
  • Benchmarking and cost optimization exercises
  • Direct negotiations to help drive down cost initiatives with OCM annually and/or quarterly
  • Solving issues in the supply chain process


Shortage, allocation, and obsolescence mitigation are all important, at different times, but the core of our supply chain value lies in our quality control and cost savings programs.

 Free Cost Savings Analysis

We continuously compare specific BOM(s) with our global database to offer potential savings to our customer’s TCO (Total Cost of Ownership).


Real examples of BOM savings:

  • We have been able to provide multiple customers with an annual savings of 10%
  • LTB and cost savings: Providing alternate options for placing LTB orders and being able to discover cost savings in the process. Product was procured, allocated, and scheduled monthly over a three-year period.
  • Obsolete parts: Brand new components in stock and available for a scheduled delivery. AMPT was able to save on our customers’ bottom line by being aware when components are about to become obsolete. If the component has already become obsolete, we find a good value or a suggested replacement, as soon as possible.
Send us your BOM with your standard pricing and we will analyze it and come back to you with a detailed quote on how our power buying status, consolidated QC, shipping, and VMI can be very effective in lowering your cost of goods sold (COGS).

How Much Can AMPT Reduce Your COGS? 


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