Pure PCB believe that the cost for its PCB production should be set by key market cost drivers up to a certain technology level; and that beyond this level the price of a circuit board is generally driven by process capability, overhead management and competitive forces.
To ensure that Pure PCB remains one of the most competitive suppliers of Printed Circuit Boards in the market place we have a forensic cost program in place ensuring we are constantly benchmarking all aspects of our operation.
Factory Cost Benchmarking
On a monthly basis Pure PCB conducts in excess of 20 surveys of Printed Circuit Board factories; assesing factory costs, overhead analysis and finished board prices on an Ex Works & DDU basis. This pricing is then averaged into a market cost by technology which we use to compare our cost of production and make adjustments to our finished PCB pricing accordingly.
Logistics Cost Benchmarking
Similarly with our factory cost management our logistics team is constantly reviewing the key cost drivers of the logistics process to ensure that we are taking advanatge of changes in aircraft fuel costs and freight fuel surchages along with ensuring we have the most competitive costs per kilo out of our key origins.
Working with data from sources such as Platts and IATA we independently verify the cost of our freight providing us the maximum leverage with our freight partners.
This process of establishing our costs versus the market cost of freight spans both our freight forward partners as well as our expedited freight couriers allowing us the security of having some of the lowest delivered costs in the market place.
Commodity Cost Management
The Pure PCB team pioneered the development & publication of a PCB "Market Watch Report" to all of its customers as a means of establishing the key cost drivers within the industry and providing a consistent, transparent and creditable method of monitoring cost trends in the PCB market place. We continue to report monthly on the trends in commodity cost pricing, labour rate trends, and general market conditions, and are generally seen as the go to people when customers want a succinct overview to the market place.
Today our "Market Watch" reporting underpins our position as one of the most competitive producers of PCB technology in the market place, ensuring that we capitalise on the advantage of lower commodity costs during reductions in the market, and ensuring that we focus on negotiations across the supply chain to mitigate product cost increases when the market costs rise.