Sourcing Strategies Supply Chain Management

Global locations help Samtec mitigate increased shipping costs

Global locations help Samtec mitigate increased shipping costs

Samtec, Inc. has implemented a variety of strategic options to help minimise tariff exposure while maintaining competitive pricing and lead times for its customers.

Samtec’s dual-operations model provides flexible options that use Samtec’s numerous global manufacturing and distribution facilities to help reduce customers’ tariff exposure. This redundant manufacturing approach enables lower-cost solutions by considering the cost of materials, labour, logistics, and tariffs. Samtec also offers flexible invoicing for tariff-related charges. To help customers track and understand tariff ramifications, Samtec has established a dynamic web page with current part-specific tariff information.

“Our strategic centres around the globe enable manufacturing and shipping flexibility,” says Scott Lamb, Samtec Director of Sales Operations, “With ongoing facility expansions and additions, as well as process optimisations, we are quickly upscaling capacity as needed to ensure the best lead times for our customers. From order entry and production to shipping, Samtec is built and committed to delivering the industry’s leading customer service, every time.”

Flexible logistics capabilities

Samtec’s World Direct 2-Day programme is proving beneficial to streamline shipping for global customers. Products ship direct from Samtec’s international factories to the customer’s location without any unnecessary consolidation points. In response to customer concerns, Samtec is now offering Freight Collect Direct for customers outside of the US, which enables more potential countries from which to ship based on Samtec facility locations. Samtec also provides customised shipping solutions for customers inside the US that operate a US Foreign Trade Zone (FTZ), use a freight forwarder, or prefer to act as the Importer of Record (IOR).

Price competitiveness

Samtec’s Volume Application Specific Pricing (VASP) programme offers more aggressive pricing for large volume, core board-to-board production orders than was previously possible. Details regarding the capabilities and efficiencies can be found at samtec.com/vasp.

Nearly 30-40% of a total connector cost is attributed to plating, which is directly affected by the rising price of gold. In order to offset this impending cost impact, Samtec now offers lower weight gold plating options and is evaluating alternative plating technologies. More information about these strategies and an explanation of plating options is available at samtec.com/gold.

Competitive lead times

Samtec is consistently rated as having the best lead times in the industry and continues to focus on customer service through its Sudden Service initiative. The number of product lines available in Samtec’s Reserve programme now exceeds 200,000 parts that are guaranteed to ship in one-day. For most non-Reserve build-to-order products, lead times start at five days.