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The subject on everyone's lips right now is lead times!
Even before the recession was declared officially over (?) CSM, along with most contract manufacturers, have seen a dramatic extension in material lead times. Unlike previous 'component shortages' in the past, no commodity seems immune! We have experienced some difficulty in sourcing components as diverse as humble passives through to transistors and diodes, IC's; and now bare printed circuit boards!
IC's typically direct from manufacturers such as TI, Omron, On-Semi and Maxim are, on average, quoting 10 to 18 weeks with some on 26 or 30 weeks! The worst case we've seen is 56 weeks, but this is more than likely, where distributors will just quote 'on allocation'. As lead times are put under pressure, we have experienced an upward trend on prices too.
Why is this?
Availability of components has been deteriorating over the last 18 months not only with the recession, but with the proliferation of new phones, cars, cheaper laptops, I-pods and I-pads, as well as the closure of wafer fabrication used in the manufacture of integrated circuits about 2 years ago... Original Equipment Manufacturers take up a large proportion of component manufacturing capacities and the knock on effect is the trickle of components into the electronic component distribution network, lengthening the lead times.
Printed Circuit Boards, whether from China or Europe have experienced supply chain problems on laminate and more recently copper, both used in their manufacture. Recent strikes in Chile copper mines have limited the supply chain as well as speculation on the metal markets driving up the price of raw material.
What can CSM do for you?
Reserving stock is out of the question now and even ordering in advance scheduled drops will not guarantee secure availability. The advice from some distributors seems to be; buy it, take it and pay for it all in one go - although they may only let you have a restricted quantity!
Our experience at CSM is that, relatively few items on a BOM are subject to extended lead times and, usually, quite low value items can restrict the build of high value assemblies. What CSM are able to offer is, if you're not able to fully commit to assembly orders at this time, then at least place orders with us for long lead components. This option could help preserve assembly ship dates and minimise the impact on your cash flow.
CSM will place orders on our suppliers immediately in order to seek secure delivery dates. As the lead time ticks away, you could release further purchase orders for the assemblies they relate to. If you can't, we will simply invoice you the cost of these pre-ordered parts and hold them temporarily in our MRP controlled stock as 'customer free issue'.
On despatch of your assemblies we can either adjust the final price on invoice to reflect the cost of pre-purchased components, or, credit the value of the components and invoice the full price of the finished goods. Remember, you don't pay anything until the goods are delivered, although normal cancellation liabilities will apply.
Order your assemblies early, we'll source and secure components and manufacture to your delivery schedule in the foreseeable future. | 
