An Electronics Proximity Warehouse (EPW) is Banneker’s innovative approach to sourcing, procurement and delivery of various electronic components using a pull-based demand model that substantially reduces a Client’s carrying costs. With over 40% of a typical manufactured product containing electronics, Banneker’s first implementation of their Proximity Warehouse Solution model began in 2008 with a focus on electronics.
For years one of the world’s largest Aerospace/Defense Prime Contractors had issues regarding the inbound material flow, carrying costs and the number of internal supply chain actions associated with their circuit-card assemblies (CCAs) and other related electronic components.
Responding to their Customer’s needs, Banneker formed a strategic partnership with Arrow Electronics, a $21B Fortune 200 global provider of products and services to industrial and commercial users of electronic components. This partnership instantly gave Banneker access to a supply channel partner and over 120,000 original equipment manufacturers and contract manufacturers through a global network of more than 390 locations in 53 countries. In conjunction with Arrow and other strategic distributor partners, Banneker provides Customers with a wide-range of electronic components supported by a comprehensive supply chain distribution model through the EPW. Components include semiconductor, passive, electro-mechanical and interconnect products that consist primarily of capacitors, resistors, potentiometers, power supplies, relays, switches and connectors. They also support specialty wire, cable, and harness management solutions.
Banneker receives a MRP feed/forecast from the Customer and collaborates with Arrow to ship consigned inventory into Banneker’s location for inspection, storage, kitting and other value-added services. Upon Customer request (i.e. electronic trigger), Banneker pulls the inventory, packages and/or kits it for delivery to the customer production floor. Due to Banneker’s strategic proximity to the Customer, this all happens within a few hours of the order’s receipt. Along with their partners, Banneker also offers a bevy of value-added services including, but not limited to, programming, tape & reel, de-reel, marking, lead re-conditioning, erasing, serialization, engineering design services and technical expertise.
For almost five years this model has been an innovation enabler and game changer for Banneker’s Customer, reducing their internal operating costs and dramatically driving down their cycle times. Currently, over $120M of electronics has moved through this EPW.
After the annual inventory of the EPW engagement, there was a total of $34.00 in adjustments for two part numbers on over $3.0M and 400 part numbers…that’s only a 0.000011% adjustment! These results are a direct reflection of the hard work and attention to detail and quality here in the EPW.
Brad S., Banneker EPW Strategic Partner
Banneker’s EPW is a proven model that can be scaled up or down to meet specific Customer needs with the ability to add key vendors, commodities and locations. Contact the Banneker expert Sales Team at 800.808.5373 or email@example.com today and discover how Banneker can help drive costs, risks and uncertainty out of your operations.