SRX Electronics Manufacturing Services Form Integral Element of Customers' Businesses
SRX is a leading Electronic Manufacturing Service (EMS) company, committed to providing high-quality Contract Electronics Manufacturing. SRXGlobal is the single, largest EMS provider in Australasia with manufacturing facilities in Australia, New Zealand and Malaysia.
“We form an integral part of our customers' businesses once they've made the decision to outsource their manufacturing,” says SRX’s Executive Chairman Joe Browne. “We essentially act as an extension of their business. This is distinct from the traditional model of just being a commoditized EM supplier. That's not us. The key differential for us is the essence of being a necessary part of their business.”
SRX provides a powerful suite of services that grant their customers a variety of ways to successfully extend their businesses. As specialists in electronic manufacturing, SRX provides competitive advantage to OEMs, allowing them to focus on their own core business drivers such as New Product Development, Sales and Marketing.
Prototyping: Using experience and knowledge from volume production processes, SRX operates a dedicated fast-turn prototype department, using flexible and highly capable placement equipment.
Design for Manufacture & Test: Having a product optimised for manufacture is vital to achieve in-built quality and a commercially successful outcome. Advice on production methods and capability and the right test solution are key requirements for a 'right first time' product introduction.
Procurement: The Company’s improvement programme with key vendors encourages close relationships and promotes excellence in all aspects including quality, delivery and commercial performance.
PCB & Box Build Assembly: SRXGlobal can provide their customers with one of the most technically advanced placement capabilities in the marketplace. They have many years of experience in the demands of fine-pitch placement and BGA technology.
Test: The Company also offers a whole host of capabilities including AOI, Boundary Scan, Flying Probe, ATE, and custom functional test rigs with the capability to develop all of their own test solutions and programs in-house.
Service & Repair: SRX provides OEMs with after-sales support including end-to-end electronics repairs, service and logistics solutions.
Quality Management: SRX operates a Quality Management System structured around the requirements of ISO9001:2008, ISO14001:2005 and ISO13485:2004 and is registered as meeting the requirements of the standard with SGS.
Building Rapport and Maintaining Flexibility
SRX endeavors to target customers with the greatest potential for long-term relationships. “We target companies where we’ll be dealing with the senior management team, building rapport with the CEO or CFO,” says Mr. Browne. He also points out that this targeted approach allows SRX to maintain a broader approach to their customers, because they do everything from early-stage design involvement, prototyping, NPI, volume manufacturing, etc. Furthermore, when the Company’s Australian and New Zealand customers get to a certain size, SRX can take them to their low-cost manufacturing facility in Malaysia.
The Company’s approach to targeting customers also lends itself to SRX maintaining a greater degree of flexibility with their target customers. “When we're dealing with customers in the U.S. and Europe, it's more about our ability to build their product in its entirety and ship it to their customers in the Southeast Asia region — that's our differentiator when we've got our Malaysian hats on,” says Mr. Browne. “Depending on the geography of our customer, it can be a slightly different pitch, but the common theme is that we like to be that extension of their existing business.”
Long-term Customer Relations
SRX customers are granted an added degree of confidence knowing that SRX will be there with them the entire way. This is reflected in SRX's sales cycle, which can take from two to three years from when the Company initially meets a potential customer to when they do an NPI build and launch into a volume-build manufacturer. “Because it's such a lengthy sales cycle, it has to be more than ‘We're a few percent cheaper than your incumbent’. Because someone who's prepared to move from one manufacturer to another for a small price savings, if it's all about price, invariably they'll be leaving us in a year's time for another few percent savings elsewhere, and that's obviously not attractive to us,” says Mr. Browne. “By and large, most of our current customers have been with us for many, many years; 10 years in some cases.”
Continuous Improvement Strategies
SRX’s comprehensive commitment to continuous improvement is one of the primary factors that motivate its clients to lock in for the long-term relationship. “For us, it's investing in tools, equipment, software products, for example, that expand our capabilities. Because we've been in business for such a long period of time — our business has been in operation for nearly 25 years — we're very strong on the traditional operations side of things. Therefore, where we've put our focus is on products, such as Valor MSS, which is a software suite that allows us to be more involved with our customers in the design stage — design for manufacture, design for test, component selection, to make sure components selected fit in with our existing supply chain — to make sure that we can deliver the best cost. Those are the areas where we are always focusing on expanding what we can do for our customers,” says Mr. Browne.
Being a privately owned business, SRX has a degree of flexibility from an entrepreneurial perspective, which again fits with targeting OEM's that are similar in size to their own business. “Their spend with us is very significant to both parties. We look for more flexible ways to set up commercial arrangements and expand what we do with them,” says Browne.
A powerful local network also helps the Company continuously improve. “We have a strong network we've developed with four or five local design houses who we consider strategic allies. We meet with them quite regularly. They are involved with brand-new products and brand-new technologies, and being in that network helps us receive early notice of the next technological advancement, innovation or improvement in the pipeline," says SRX's CEO Paul Appleby.
Additionally, SRX has the traditional suite of Six Sigma, operational performance standards, LEAN manufacturing, etc., in place. And each of the GM's that run the operational parts of the business — the Company has a GM in New Zealand, one in Australia and one in Malaysia — they all come from very strong OEM backgrounds, with very strong engineering and manufacturing skills, so all of that is very well embedded within everything SRX does.
Large Business Manufacturer of the Year
SRX bring together the key elements that their customers demand, offering the IP protection, high quality, process control and ease of doing business in Australia, combined with their low-cost country sourcing capabilities and their genuine passion to help their customers succeed. As such, SRX is the fresh winner of the 2014 Large Business Manufacturer of the Year awarded through Business Victoria, an organization of the State Government of Victoria.
“We never had a customer come to us yet who’ve asked for us to build a product that is beyond our capabilities,” says Mr. Appleby.