Supply Chain Managementfor Hardware Startups

Mighty Net

2

Mighty Net / CEO• Might Electronic BU Head• MakerPro Industry Consultant• TRIPLE Lecturer• StarFab Accelerator Mentor• 500 Rookies Fund Mentor

『 You jump off a cliff and you assemble an airplane on the way down 』Reid Hoffman, Founder of LinkedIn

Hardware is Hard?

Manufacturing is easy

Integration

Scale

Dec 2013

• Kickstarter $297,824 as 745% over target

2014 Sept.

• Much-delay, non-tech prototype release

Jan 2015

• Last update and delay again due to the LED display

Dec 2013

• Kickstarter $297,824 as 745% over target

2014 Sept.

• Much-delay, non-tech prototype release

Jan 2015

• Last update and delay again due to the LED display

The success of the Kickstarter funding project (20 times beyond the target) has put huge pressure on the Zano team to force them to develop additional features and to expand production scale for each order.

Zano team rushed into production before functional product has NOT yet proved in order to catch the deadline.

1. Do Not have working relationships with any other solutions company or EMS factories

2. Paid 50% of money to secure the 20k Units LCDs3. Marketing team with very limited hardware experience

Design ≠ Manufacturing

Right Demand and UX（User Experience）

Cost + Function + ID + Schedule = 1

Cost underestimated and

Incorrect Target at Crowd-funding

No experience in Hardware Supplier Chain

Chip Solution

Chip Agent

DesignHouse

Certification Lab

EMS

ODM

Forwarder

Software is Solo, Hardware is Symphony

Internal Expert

Expectancy Match

Factory is your 1st customer

Next Product

Breaking up

1. NDA

2. RFQ Package

3. Quotation

4. Quality Plan

5. Certification

51

Factory Language

NDA (Non-disclosure agreement)

RFQ Package

1. Company Background

2. Product application

3. Quantities (Qty/lot, Annual Forecast)

4. Inquiry service (Design, Manufacturing, Sourcing)

5. Inquiry data (BOM, Gerber & Drawing)

6. Quotation

Functional Block Diagram

Schematic

BOM

• Type

• Brand

• Part No.

• Usage

• SMT X-Y

PCB Gerber• Format : CAM

• Material : RF4

• Finishing

• Copper oz

• Color

• Trace

• Polarity

• Panel Design

Drawing

• Material

• Finishing

• Tolerance

• CriticalDimension

Quotation

Might Electronic CO., LTD.

No 40, Lin 2, Yua n S ha n Ts ue n, Hs in Fe ng Hs ia ng, Hs in

Chu Hs ie n,Ta iwa n, R.O.C.

TEL:   +86-769-85555526               FAX: +86-769-85555529

To: NO#

Addre s s : TEL.

FAX.

e-mail:

Term of Lead Time: 14 We e ks once Re ce iving Firm Orde rs

Term of Payment: 50% Down with Orde r, 50% Down be fore S hipme nt

Term of Shipment: FOB TAIWAN

Currency: US D Date:

Exchange Rate (USD/NTD): 1:32.8 Offer Validity:

Mode l: Q 'ty:

Ma te ria l Cos t

S MT

DIP

As s e mbly Cos t

Te s t

P a cking

Tra s porta tion

Ha ndling Cha rge

Tota l

NRE Cos t (Non-Re curring Engine e ring)

P CB S te ncil Cos t

P CB S e t up Cos t

Te s t Fixture Cos t

Tota l

Remark

1. S ome compone nts a re quote d with s ubs titute s .

2. P rice is including 1% s cra p ra te .

3. Any furthe r Engine e ring Cha nge (ECN) will be re vie we d a nd re fle cte d to ne w quota tion.

4.

5. Te s t a nd Fixture cos t ne e d to be dis cus s e d.

6. P a yme nt Te rm could be re vie we d a nd dis cus s e d for long-te rm bus ine s s .

QUOTATION

Item Description of ModelQuantity Unit Price Amount

(PCS) ($) ($)

For MOQ is s ue of compone nts , cus tome r ha s to s ign a contra ct to gua ra nte e to buy ba ck a ll our

inve ntory if the re is no orde r in 3 months .

• Lead Time

• Payment Term

• Trade Term

• Scrap Rate

• MOQ Issue

Trade Term = Responsibility and Expense

Certification

Antony Lien / CTO17 years Hardware Design

IC Distributor

Mike Liang/ CMO30+ years PC/IT MarketingWorldwide Sales Channel

Ray Tai / CEO14 years EMS/ODM

Supplier Chain

Daniel Wu / CSO16 years Product Manager

Product Strategy

Alvin Li / Chief Designer20+ years ID/UX DesignIntegrated Innovations

Ray Hu / RD Leader14 years Mechanical Designer

Production Planning

Vincent Lo / PMME Design

Fixture Design

Ken Huang / PMProduction Operation

Process Design

Mos Lee/ PMHardware Design

Testing Design

William Yang / SISystem Design

Automation

Wuulong Hsu / SILinux OSIC Design

Sebastian Hsieh / MarketingGrowth Hacking

Website Planning

ID / ME Design EE Design System Integration Cloud Service / OTA

Maker Community Supply Chain Matching Designer E-commerce Maker E-commerce

Co-working SpaceＣloud Accelerator HW Accelerator Incubator

UX UI Design

CE E-commerce

HW Accelerator

TRIPLE & MakerPro Visiting

New Product Interview

Taipei Computer Application Show 2015

HsinChu Maker Faire 2015

RAPAQ Design Match 2015

Venture AP 2015

TRIPLE Singapore Startup Trip

Taiwan Cloud Accelerator Event

2016 Maker Faire Taipei

Date：2016/5/7-2016/5/8

Visits the US Maker & Accelerator

Date：2016/5/18-5/28

2016 Computex

Date：2016/5/31-2016/6/4

2016 Maker Faire Shenzhen

Date：2016/10/18-2016/10/24

Mayor of Hsinchu City visit us

Date： 2016/11/21-2016/11/23

US-Taiwan Startup Meetup

Date： 2016/11/29

Plug and Play to visit us

Date：2016/12/4

Launching event of MiniPlan v6

Date：2016/12/22

『And the more you know how to make things, the better designer you’re going to be』

Yurchenco, ID of Apple Mouse