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Challenge:
After evaluating the equipment they had in house for assembling, testing their electronic assemblies and looking at their growth patterns and future designs, the company recognized that their current equipment was going to become obsolete very quickly. The new expense of continuing their current model of vertical integration was going to be more than they could take on to maintain a positive financial position. So, they began looking outside of themselves for a partner that could take on existing PCBA technology while positioning themselves for the new designs that were coming online with the new wave of product releases. In addition, they wanted to partner with a company that could support more than just one product they needed. They wanted to align with a company that could support numerous commodities, and/or provide PCBAs, up to a box build turnkey assembly.
Solution:
STACI Corporation provides a “Hub and spoke” business model that benefits its customers greatly by providing them with the opportunity to buy a turnkey assembly from our “Hub” STACI EMS factory, or commodity level components through our “Spoke”, JV factories.” STACI’s EMS factory is dedicated to supporting legacy technology as well as emerging technology, from through-hole with wave solder to tight package BGA and Micro BGA SMT placements.
Result: The company was able to buy small volume mature technology assemblies from STACI along with the new technology tight package SMT assemblies of the new designs. In addition, they have the ability to purchase extrusions, castings, sheet metal stampings, and cable assemblies along with the PCBAs. By working with STACI Corporation, they were able to support their legacy products as well as the newly emerging designs that will ultimately replace the old products. They were able to maintain price points their customers required while increasing their internal profit margin.
Read the STACI Newsletter, October 2007, Issue 10.1
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