Rebel at Future Electronics stocking policy

Oznog

Enlightened
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Dec 2, 2006
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Well I had a long talk today with a great sales guy Ron at Future about many things, including the lack of availability of singles. They have 500x reels but rarely show sub-500x stock as available, but they used to have singles available. Which to me makes sense IF you are low on 500x reels because you don't want to disappoint a big mfg by saying sorry we're out of standard reels but we have a broken one and we wish you best of luck in getting that set up in your machine. Project managers like to order a 500x reel of devices and 500x reels of driver components and have 500x products.

I found out something that surprised me. Future now has ample stock of the 500x reels. And IMHO if they break a 500x reel there is enough market that it will be completely sold before becoming obsolete, and they get to charge a 20%-100% premium on sub-500x quantites. The reason they don't break is not a Future stocking decision but actually from Luxeon, Luxeon specifies a Minimum Release Quantity of 500x reels and does not allow an official vendor to break a reel on their own, the broken reels that people have been getting samples from were supplied by Luxeon to the vendor in that form. Probably the reason here is that, if you've ever dealt with Rebels, the little tray row has problems with the plastic cover film peeling off and dropping the devices out, and also there are specs in how long the device can sit outside the packaging before it needs special procedures for reflow due to increased moisture content.

Oh, hmmm... one thing I didn't think of. With a 5x order, well any yahoo can cut 5x off a reel. With a 100x order, I bet Future's going to have to address the issue of how to physically count off exactly 100x devices before cutting. Huh, well, Digikey, Mouser, and the rest of Future stock provides any quantity of reeled smd devices this way. So whatever the solution obviously there IS some kind of solution out there.

I think this is a downer because it's smothering the developer market. I could even live with them providing broken reels "as is" without warranty even. I mean most of us reflow with toaster ovens or heat guns anyways so it's not exactly like we follow all Luxeon specifications and are probably voiding any warranty anyways.

Ron says he can start some dialogue on that issue. I don't know what will come of it, in the end Future and Luxeon will do whatever generates the most profit and I expect nothing more or less from them. I think the case for readily available sub-500x quantities is strong, it not only is a sale you would not have with only 500x reels available but the small mfg looking to do an experimental run of 50x parts may turn into a 1000x customer.
 
Really? Luxeon is preventing the release of Rebels in quantities of less than 500? Simply put, that's retarded.

For a 100x order, they could use a ruler to measure, or use one of the machines used in automated assembly, because those reliably count large numbers of parts from reels. Alternatively, they could hand-cut the broken reels into fives or tens and then add those together for an order.
 
I had ordered five of every color from Future about 6 or 8 months ago, and they finally sent me an email last month asking me if it would be OK to cancel the cyan and one other, because the waiting list was too long for those parts. They told me that it would be months more before I could get the last two colors in quantities of 5.

It was annoying because honestly at that point I would have just canceled the whole thing, but they had already sent out an incomplete order.

So yeah for some reason they've decided they don't want to sell these parts to individuals any more. Maybe this is some Philips strategic decision.

However, if you have a corporate identity to use I'm sure it will be no problem. Just sign up for corporate account with Future and they will send engineering quantities as much or as little as you want. Maybe they will even send free samples. At least that's the impression I got from talking to Future Asia.
 
From what I can tell Luxeon prevents its primary vendors from selling this way. There are operating agreements that a vendor signs and to break it would jeopardize the ability of the dealer to get another shipment of devices, perhaps open themselves up to lawsuits. Of course if you care to buy a 500x reel and resell there's no law against that but such vendors will need to charge a premium, lacking the visibility and reputation of Future may have difficulty moving even 500x parts.

The 500x reels are unfortunate for the RGB designer. To make white actually seems to require at least 2x reds for every green (not sure about blue). You could put 1x red/1x green on an RGB board but it's only going to be able to utilize half the green's power and it is more cost-effective per "white" lumen to utilize 2x red + 1x green per board. This causes a lowest-common-denominator problem, I'd need to either buy 500x red + 500x green and find another use for the 250x unneeded greens OR be forced to buy 1000x red + 500x green.

Well, there IS http://www.luxeonstar.com they carry Rebels in singles so apparently they DON'T have this restriction. I wonder, could Luxeon be trying to protect LuxeonStar.com when they handed the 500x MRQ to Future? LuxeonStar seem to be showing much lower lead times than I recall seeing before, AND are now carrying the top-quality bins and they didn't do that before. And the price is not as bad as I recall either. They're not looking too bad actually, these were the reasons I passed them up as a vendor before.

LuxeonStar is expensive though. Well... like here's Future's breakdown on broken-reel on the LXML-PH01-0040:
1 2.7617 $2.76 5 2.0759 $10.38 10 1.8724 $18.72 100 1.4372 $143.72
And LuxeonStar is:
1-9$2.29 10-24$2.17 25-49$2.05 50-99$1.94 100-249$1.82 250-999$1.71 1,000+$1.51
So actually LS is cheaper on singles. Huh! But if you're looking for midrange like 100x, Future did way better prices (IF they have broken reels). LuxeonStar has no stock and a 2-wk leadtime, Future will have stock of reels but so far their "broken" reels seem to all be in Europe and there IS a long lead time to get them sent to the US distributor.

But the price breakdown is inconsistent. The Green-80 LXML-PM01-0080 for example. At Future these are $2.49 in 500 reels now if I read my notes correctly, the website price is out of date since Luxeon has now shipped tons of these top bin items. They don't have plans to provide broken reels though.

Meanwhile LuxeonStar is still giving:
1-9$4.48 10-24$4.25 25-49$4.03 50-99$3.80 100-249$3.58 250-999$3.36 1,000+$2.97
which is insanely expensive. Actually I think I'm going to give them a call on this maybe it's just a matter of the website being out of date?
 
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As of this morning, Future is showing quantity 1 in stock for high-bin R, G & B. Did you try ordering online?
 
As of this morning, Future is showing quantity 1 in stock for high-bin R, G & B. Did you try ordering online?

The red-orange 50 is showing "call for availability". I'm not sure those availabilities or prices are accurate. The green-80 is showing at $4.69(!) with no quantity discount, IIRC I think they're not actually in the US and there would be a lead time involved in getting them from a foreign Future office, but they might not even want to do this shipping for a small number of devices anyways. My notes are not completely clear on this point. IIRC I ran into a similar situation calling about price and availability months ago, the situation on both fronts was different than the website suggested. Now don't get me wrong I believe if you ordered at a $3 price on the site they would not raise the price on you. But the actual cost may be lower OR like I say the stock may not quite be as "available" as indicated, this is probably what happened with snarfer's cyan order. When in doubt call. I can tell you this every time I've called, I got someone immediately and the person on the other end of the line ALWAYS knew exactly what was in stock and where it was and if it's out of the country what it would take to get it into the USA. As always, be professional and have your questions on a list before calling.

Future's website is not always up to date, and the situation with Rebels keeps changing or has these complications of the stock being outside the USA. For awhile Rebel's supply from Luxeon was really touch-and-go, only small quantities, release dates pushed back over and over, and they didn't always ship every color in the product line esp not in the top bins. But more recently they've provided Future with tens of thousands and filled out all the colors in their product line card.

Even still the demand for Rebels from high volume mfgs is uncertain so they're not sure who needs them where. In 500x reels having 2000 is only 4 reels and it doesn't necessarily make sense to ship half of them from a European or Asian office to the US office because someone in Europe may still request all 4 of them and you'll have to ship them back! Once you have a sales history and know what volume a market needs then you can set up a system to get what people need where they need it.
 
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That's exactly what happened with my cyans. They had plenty of them in Singapore but would not send them.

I can understand from a business standpoint why they would have this policy. They probably do have to prioritize their bigger customers who need full reels for volume production.

And of course they are hardly the only manufacturer to work this way, still easier for an individual to order from Future than, for example, Nichia.

Still it is annoying, and I didn't feel they handled my order in a professional manner. They violated their own stated policy by shipping my incomplete order without asking. I would have told them to cancel the whole thing if they weren't going to ship it complete.

My feeling is that I'll wait until they have full availability on these parts before I spend any time developing anything with them. By that time maybe another less annoying company will be offering a competitive product anyway.
 
By that time maybe another less annoying company will be offering a competitive product anyway.

Exactly.With Cree releasing the XP-E,this may turn out to be a problem for Lumileds.

The XP-E looks to be a real competitor.

-Michael
 
XP-E isn't going to come in colors, is it?

Future does have information accuracy problems with the website. And it kinda sucks where the website HAS specific designations of "in stock" vs "lead times" leading to a high yet false confidence that if you order an in-stock item it will always be available to ship immediately. But I can tell you this- call on the order and you won't be disappointed, the info you get will be accurate.
 
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Well I called on the order and specifically told them not to ship until it was complete. Then one day I get an email out of nowhere stating:

I have been asked by my Marketing Group to release the available stock that has been sitting allocated to your above online PO. This was released last evening, July 24th under Fedex tracking...

So I was not impressed by that at all. Why didn't they ask me if I still even wanted the order that had been sitting around gathering dust for 6 months? Also I found it really hard to believe that they couldn't come up with 8 of the 70 lm Cyans and 8 of the 80 lm Cool Whites to make it complete. Keep in mind that I put my order in before the recall even started. So I had to be pretty much at the front of the line at that point.

Well anyway I have to wonder whether maybe part of the problem at this point is that they've been over-hyping the product and they're stuck with a whole bunch of low bin parts they need to get rid of.
 
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