Electronics Production World

Electronics Production World Interview with Ben Khoshnood, President of Zurvahn Inc.

Publication date: 17 April 2008

Electronics Production World Interview with Ben Khoshnood, President of Zurvahn Inc.

A supply chain management expert, Zurvahn is an EMS provider for low to mid-volume products to OEMs worldwide. Zurvahn assists customers in designing reliable products, manufacturing products cost effectively, providing lower inventory requirements, and delivering quality products and services on time.

Ben Khoshnood1. Zurvahn plays a key role in today’s electronics industry? Why is that? What can you give your customers that competitors cannot?

We provide services that tier one EMS companies provide to their customers for the tier two and tier three EMS market. Some of the important services that we provide to our customers include extensive in-house engineering capabilities that provide our customers with cost-effective, reliable product design solutions for their product needs.

We help our customers resolve component obsolescence and/or ROHS challenges through redesign. Also, our global footprint enables us to deal directly with global low-cost suppliers of custom parts from China and India.

Our employees in China and India continuously help us source new competent cost-effective suppliers and they provide source inspection before shipment.

Our Mexico facility, in conjunction with sourcing various parts from China and India, provides us with the unique capability to provide our customers with a low-cost alternative to China or India for product assembly.

Buying and bonding all integrated components from our key Z-club partners (Arrow, Avnet, Future, Heiland and TTI) mitigates the counterfitting problem sometimes seen in oversees manufacturing and yet provides our customers with a cost -effective alternative.

Additionally, our Web-enabled Inovaxe-ERP and documentation system allows our customers to track their sales order through our system as well as providing the ability to analyze alternative requirements.

The key items that can be viewed by customers include: Inventory level, Open sales orders, Purchase orders to suppliers, Kit status with Can build, Kit good to go dates, BOMs. Our US and Mexico multi-location capability, in conjunction with our Web-enabled Inovaxe-ERP and documentation system, provides our customers with the ability to develop contingency plans.

2. Are there any new product developments that Zurvahn has been focusing on lately?

Definitely. The design of ODM products for industrial control and automation has been a focus for us. These are board-level, state-of-the-art solutions, which for measurement and control application include flow measurement, motor control, gas furnace ignition and display/keyboard human interface.

3. How is 2008 shaping up for Zurvahn?

2008 is going to be an extremely important year for us. We have expanded in numerous key management areas and have hired a VP of Business Development that will focus on helping our customers design new products and redesign with lower costs, while eliminating obsolete components.

We also added a new VP of Sales, who comes from Arrow, and brings professional multibillion-dollar sales organization experience. Finally, our executive consultant will focus on looking at our competitors to find the right candidates for our acquisition plan this year.

4. What challenges do EMS manufacturers face currently?

The biggest challenge lies in adapting to new changes in the supply line to meet customer demands for lower pricing and carrying inventory for their products. It is all about managing, inventory and obsolescence. The second and third tier EMS providers must be willing to invest far more on ERP systems as well as building design engineering capabilities.

5. How has supply chain management changed over the past couple years?

As the tier one manufacturers transfer their build capabilities to China, India and other Far East countries, many supply chain professionals from that market segment have found their way into second and third tier OEMs.

Practices of first tier rules of engagement have been appearing in the high-mix/low- to mid-volume market. As a result, managing cost, excess and obsolete, and total inventory on hand has become a serious challenge for the mid- to low-volume segment of the EMS market.

Zurvahn has responded with our Z-club member partnerships with five key electronic distributors. We facilitate bringing these suppliers close to our end customers. This partnership is based on our customers negotiating pricing with these suppliers and then we focus on reducing acquisition costs. As a result, we are in a better position to manage our inventory and serve our customers.

6. How have your Asian operations helped your business? Does this offer any advantages to your customers?

Our operations in India and China have served our strategic advantage immensely. As price is becoming more of the negotiation factor, we can cost effectively provide many custom parts such as sheet metal, labels, switches, transformers, PCBs, plastic, etc. from our global suppliers.

For further information, visit http://www.zurvahn.com

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