When your PCB supplier is acquired, your relationship and the level of service will likely change. Here are steps to protect your supply chain:
1. Proactive Communication:
– Don’t wait for the new supplier team to contact you. Request a meeting promptly, especially if the acquired firm was significant to your PCB spend.
– Gauge the new supplier’s receptiveness and ask necessary questions to understand the new dynamics.
2. Evaluate Order Status:
– Determine where your orders stand with the larger entity. Often, customers become smaller fish in a bigger pond.
– Ask what percentage of their business your sales represent. The larger your share, the better your position.
3. Assess Your Account’s Importance:
– Find out if you are still considered a target account for the larger vendor.
– Be prepared for reduced leverage on pricing and service, as the new supplier may raise prices to phase out less desirable customers.
4. Anticipate Personnel Changes:
– Inquire about plans for ensuring a smooth customer service transition, as staff changes are common after mergers.
– Be aware that sales representatives might operate under new incentives or be replaced by existing staff.
5. Review Agreements:
– Check your agreements for clauses about changing subcontractors. The new company may move your business to different manufacturing locations.
– Specify in writing which orders cannot be moved due to customer requirements.
6. Ensure Compliance with Requirements:
– Confirm that the new entity can maintain your nondisclosure (NDA), hold-harmless, and service-level agreements.
– Verify payment terms, delivery times, RMA processes, warranty policies, and quality oversight.
– Provide the new supplier with your most recent PCB fabrication spec.
7. Develop a Contingency Plan:
– Have a Plan B, especially if both vendors involved in the acquisition were your suppliers.
– Reach out to alternative PCB vendors for quotes to maintain leverage and ensure competitive pricing and service.
8. Consider Moving On:
– If the acquisition does not benefit your company, gradually transition your business to other suppliers.
– Explore dealing directly with offshore manufacturers, bypassing brokers for potentially better terms and pricing.
By taking these steps, you can mitigate potential disruptions and ensure continued reliable service for your PCB needs.
Need help navigating your PCB supply chain. Reach out to DirectPCB!