2.1 Material Group Architecture

2.1

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 GroupGroup" Architecture

logic

• used to assign specific sourcing strategies—Strategic, Commodity, or VMI—to every component entering the facility.

The Segmentation Logic:Logic We

do

Materials notare treatclassified all parts equally. Defining theinto four strategiesdistinct basedgroups, oneach thegoverned materialby nature:a specific procurement protocol:

• Class A (Strategic/Strategic / High Value):
  • Definition: Processors,High-cost, single-source, or custom components (e.g., FPGAs, PCBs, Custom PCBs, Connectors. Plastics).
  • Strategy: ContractForward negotiation,buying, safetybonded stockinventory agreements, and direct manufacturer relationships.negotiation.
  • Control: Strict serial number traceability required.
• Class B (Mid-Range):
  • Definition: Standard ICs, FETs.Connectors, and FETs with limited alternates.
  • Strategy: Franchise distribution,distribution bonding.with 12-month rolling forecasts.
• Class C (Commodities):
  • Definition: Passives (Resistors, CapacitorsCapacitors), (C-R-C).standard diodes.
  • Strategy: Automated replenishment,replenishment VMIvia (Vendor Managed Inventory).Inventory (VMI) or Kanban bins.
• Consumables:
  • Definition: Solder paste, flux, adhesives, IPA. 
  • Strategy: Shelf-life managementfocused focus.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