09. Materials Planning, Procurement & Warehouse Execution
Plan, buy, receive, store, and kit parts without shortages or chaos.
Part 1. Quotation-to-PO Pipeline (BOM → Award → PO)
1.1 Material Group Architecture
Supply chain resilience relies on rigorous segmentation. Treating a microcontroller and a standar...
1.2 Supplier Selection & The AVL
The Approved Vendor List (AVL) functions as the primary firewall for the manufacturing ecosystem....
1.3 ROM Costing & Spend Stratification
Engineering velocity often outpaces supply chain visibility. Waiting two weeks for formal quotes ...
1.4 Quote Validation & Risk Flags
A Raw Order of Magnitude (ROM) estimate is a guess; a Validated Quote is a contractual instrument...
1.5 In-Depth RFQ, Quote Leveling & Award Rules
A vague Request for Quote (RFQ) generates vague pricing. If you send a supplier a simple spreadsh...
1.6 Purchase Order (PO) Management
A Purchase Order (PO) is not an administrative suggestion; it is a legally binding contract that ...
1.7 Counterfeit Avoidance (AS5553)
Counterfeit components are not merely a financial nuisance; they are a system contagion. A single...
1.8 Supplier Commit Control & Expediting
A Purchase Order represents demand; the Supplier Acknowledgement (ACK) represents reality. The ga...
Part 2. The Demand Signal (Planning)
2.1 The Planning Hierarchy
Procurement cannot function if it chases conflicting signals. When Sales forecasts one number, Pr...
2.2 Lead Time Management
Lead time is not a static integer; it is a volatile variable that dictates the horizon of your li...
2.3 Shortage Management (The “Chase” Process)
A shortage is a failure of the planning system. It is an operational emergency that directly thre...
2.4 MRP Parameter Governance
Material Requirements Planning (MRP) is a deterministic engine. It possesses no intuition. It cal...
2.5 A-Part Control Tower (Critical Parts Management)
The Pareto Principle dominates supply chain physics: 20% of the components create 80% of the risk...
2.6 Schedule Freeze Windows + Change Control
A supply chain cannot execute a moving target. If the production schedule changes daily, or if En...
Part 3. Process Materials & Chemicals
3.1 Approved Process Materials List (APML) + Specifications
A Bill of Materials (BOM) defines the components, but the Approved Process Materials List (APML) ...
3.2 Process Materials Procurement & Replenishment
A manufacturing line consumes solder paste, flux, and cleaning chemistry just as it consumes elec...
3.3 Process Materials Change Control
In electronics manufacturing, "Process = Chemistry + Physics." Changing a consumable is not a com...
3.4 SDS/EHS Gate for Chemicals
Procuring chemicals is fundamentally different from procuring hardware. A wrong resistor stops th...
Part 4. Indirect Procurement (MRO / Services / CAPEX-lite)
4.1 Indirect Spend Taxonomy + Ownership
Indirect spend—items that do not go into the finished product—is the silent killer of factory pro...
4.2 Requisition-to-PO Workflow (Indirect)
Indirect procurement is the wild west of the supply chain. Without a rigid process, it devolves i...
4.3 Vendor Onboarding + Framework Agreements (LTA/SLA)
Treating indirect suppliers as transactional vendors invites volatility. A facilities management ...
Part 5. Inventory Control
5.1 Inventory Classification (ABC Analysis)
Treating a $500 FPGA and a $0.001 resistor with the same level of physical control is operational...
5.2 Inventory Control Operating Model (KPIs, Ownership, Audit Cadence)
Inventory is money frozen in time and risk sitting on a shelf. Without a rigid control model, ent...
5.3 Excess & Obsolete (E&O)
Excess and Obsolete (E&O) inventory is not a storage issue; it is a financial pathology caused by...
5.4 Strategic Stockpiling
Strategic stockpiling is the deliberate decision to violate standard inventory turns targets to h...
5.5 Cycle Counting & Reconciliation
Inventory accuracy is not a "nice to have"; it is the mathematical foundation of your entire oper...
Part 6. Parts & Materials Handling
6.1 Receiving, Inspection Routing & Identification
Receiving is not a clerical task; it is the physical and digital firewall of your manufacturing s...
6.2 Put-away & Location Control
Put-away is the translation of "possession" into "availability." A component sitting physically o...
6.3 Storage Zones & Segregation Rules
Inventory segregation is not about organization; it is about risk containment. A "rejected" flag ...
6.4 Environmental Controls (Temperature/Humidity, Cabinets, Monitoring)
The warehouse environment is a functional component of the manufacturing process. Poor storage co...
6.5 ESD Control Program
Electrostatic Discharge (ESD) is the silent assassin of electronics. It is invisible, audible onl...
6.6 MSD Handling & Baking
Moisture Sensitive Devices (MSDs) are ticking time bombs in the manufacturing process. The danger...
6.7 Shelf-Life, Lot Traceability & Recall Readiness
Traceability is your insurance policy against total disaster. When a supplier announces a recall ...
6.8 Solder Paste, Flux, Chemicals Storage & Handling
Solder paste and adhesives are not static components; they are chemically active mixtures suspend...
6.9 Picking, Kitting & Line Release Discipline
Kitting is the transformation of generic inventory into committed "Work in Progress" (WIP). It is...
6.10 Line Returns, Scrap & Nonconforming Material Flow
The "Reverse Flow" (Production → Warehouse) is where inventory accuracy usually dies. Operators u...
Part 7. The Physical Network (Logistics)
7.1 Incoterms & Liability
Incoterms are not merely shipping instructions; they are the fundamental contract of financial li...
7.2 Import/Export Compliance
Customs authorities function as the ultimate physical firewall in your supply chain. They do not ...
7.3 Reverse Logistics (RMA)
Reverse logistics is not waste management; it is a forensic investigation. A failed component is ...
7.4 Freight Booking, Consolidation & Exception Handling
Freight is the volatile variable that can quietly erase the cost savings you fought for during ne...
Part 8. Supplier Performance & Development
8.1 The Supplier Scorecard
A scorecard is not a report card; it is a feedback control loop. Without objective performance da...
8.2 Supplier Development & Escalation
Escalation is not about shouting louder or applying emotional pressure; it is a mechanical proces...
8.3 Supplier Business Reviews
A Business Review is not a social visit. It is a control mechanism. If the agenda focuses on "rel...