2.1 Material Group Architecture
Supply chain resilience relies on the precise segmentation of the Bill of Materials (BOM). Treating a custom-fabricated enclosure with the same procurement logic as a commodity resistor introduces unnecessary risk and capital inefficiency. This chapter defines the "Material Group" logic used to assign specific sourcing strategies—Strategic, Commodity, or VMI—to every component entering the facility.
The Segmentation Logic
Materials are classified into four distinct groups, each governed by a specific procurement protocol:
- Class A (Strategic / High Value):
- Definition: High-cost, single-source, or custom components (e.g., FPGAs, PCBs, Custom Plastics).
- Strategy: Forward buying, bonded inventory agreements, and direct manufacturer negotiation.
- Control: Strict serial number traceability required.
- Class B (Mid-Range):
- Definition: Standard ICs, Connectors, and FETs with limited alternates.
- Strategy: Franchise distribution with 12-month rolling forecasts.
- Class C (Commodities):
- Definition: Passives (Resistors, Capacitors), standard diodes.
- Strategy: Automated replenishment via Vendor Managed Inventory (VMI) or Kanban bins.
- Consumables:
- Definition: Solder paste, flux, adhesives, IPA.
- Strategy: Shelf-life focused procurement; First-In-First-Out (FIFO) enforcement.
Procurement Ownership
- NPI Procurement: Focuses on speed and sample acquisition for Classes A and B during Engineering Validation.
- Sustaining Procurement: Focuses on cost reduction (PPV) and lead time stability for volume production.
Final Checklist
Material Group | Primary Risk | Mandatory Strategy |
Class A (Custom) | Single Source Failure | Bonded Stock Agreement / Safety Stock |
Class B (IC) | Market Allocation | Rolling 12-Month Forecast |
Class C (Passive) | Handling Cost | VMI / Kanban (Auto-Replenish) |
Consumables | Expiration | Strict FIFO & Expiry Logging |