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Supply Chain Management

NEO Tech’s Lean Supply Chain philosophy increases schedule flexibility, reduces transaction costs and minimizes inventory liability. As a significant purchaser of electronic components, we capitalize on economies of scale, long term supplier agreements, and the industry depth of our procurement personnel. Our centralized commodity team helps support hyper-aggressive cost-reengineering strategies as well as obsolescence and quality challenges. Our specialized NPI procurement team ensures on-time project launches.

Supply Chain Management

  • Leverage component purchases globally for lowest possible cost
  • Customer-specific supply chain solutions
  • Bonded component buffers/proximity warehousing
  • Dedicated NPI purchasing resources
  • Evaluate and recognize vendors with Supplier Rating System (SRS) and Star Supplier Award program
  • Partnership between Supply Chain Management (SCM), Quality Assurance, and third party auditors to evaluate suppliers, issue Supplier Corrective Action Reports (SCARs), and maintain our Approved Vendor List (AVL)
  • Dedicated Component Engineering Resource
  • Distribution or direct purchases based on customer requirements
  • Supplier-managed kanban bins with protected bond quantities in production facility
  • Proprietary algorithms used to set optimum bond sizes
  • Leverage electronic date interchange transactions with suppliers to manage forecast, lead times, and inventory
  • Manage traceability to lot numbers and serial numbers as required by industries/customers
  • Component life cycle management

Strategic Commodity Management

  • Mechanical: Cables, cable assemblies, custom  metals, custom plastics, bare boards
  • Electronics: ICs, bare die, passives, interconnects
  • Global pricing and terms agreements with key  suppliers
  • Lead supplier business reviews and performance  evaluations
  • Audits of custom component suppliers

Parts Obsolescence Management

  • NEO Tech uses both production engineering and design engineering based techniques to
    mitigate difficult replacements
  • Principles utilized are:
    • Proactive component engineering recommendations
    • Technology roadmaps
    • Product life cycle analysis
    • Buying and maintaining stock of end-of-life (EOL) parts
    • Maintaining a relationship with manufacturers so we are informed of developing EOL parts
    • Working with the customer to identify alternatives

Counterfeit Components Risk Mitigation

  • NEO Tech buys from a limited number of Certified Approved, franchised distributors only
    • 99% of bare die comes from five suppliers
    • 70% of PCBA components come from six suppliers
    • Preferred Independent Distributors are audited for their supplier vetting processes and counterfeit detection abilities
  • Original manufacturer Certificate of Compliance (CoC) is required
  • Lot Acceptance Test (LAT) data or equivalent is required
  • Suppliers must be ITAR registered with the State Department when a government agency is the end-customer
  • Suppliers parts must meet all NEO Tech and customer quality clauses
  • Uncertainty or doubt about parts and paperwork trigger third-party analysis for validity
  • We have had zero counterfeit incidences in our four decade history
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NEO Tech’s Conflict Minerals and Supply Chain Transparency Policy

NEO Tech is committed to operating in a socially responsible way. We follow the Electronic Industry Citizenship Coalition (EICC) Code of Conduct as well as support the non-usage of conflict minerals mined from the Democratic Republic of Congo (DRC) region.

NEO Tech fully supports the humanitarian goals of the Dodd Frank Act – eliminating illegal mineral trading and the funding of armed conflict while supporting legitimate commercial ventures. Since the supply chain for Conflict Minerals is complex, and consists of many tiers, including mines, traders, exporters, smelters, refiners, alloy producers and component manufacturers, tracing these minerals to their sources is a challenge. We are committed to working with our supply chain to increase transparency regarding the origin and traceability of minerals contained in our products with the goal of ensuring that all products sold by NEO Tech to our customers are “DRC Conflict Free.”

Additionally, NEO Tech is committed to human rights and we expect that our business partners will share this commitment. Since 2004 the EICC has built upon the Code of Conduct which prohibits the use of forced, bonded, indentured labor or involuntary prison labor. We audit our suppliers to this code and take seriously all forms of non-conformance. The EICC also has a Freely Chosen Employment (FCE) task force designed to help identify opportunities to share best practices among members, expand the Code of Conduct, and make recommendations on available tools and training. On January 1, 2012, the California Transparency in Supply Chains Act of 2010 went into effect in the State of California. The Act seeks to supply consumers with information regarding companies’ efforts to eradicate slavery and human trafficking from their supply chains. Set forth below is information about NEO Tech’s long standing efforts to ensure that our suppliers are not engaging in conduct that could be considered slavery or human trafficking.

NEO Tech conducts supply chain due diligence consistent with the DOJ and OECD guidelines. Our efforts to address these issues include notifying our suppliers of our policies on conflict minerals and human rights, as well as requiring that they disclose their status with respect to the use of conflict minerals. The aim is to ensure that only “conflict free” and “slavery free” materials and components are used in products that we procure.

If we discover the use of these minerals produced in facilities that are considered to be “non-conflict free” in any material, parts or components we procure, we will take appropriate actions to transition product to be “conflict free.” Likewise, if we discover human trafficking or slavery was used to source labor for any material, parts or components we procure, we will take appropriate actions to transition products to a more socially responsible supplier.