Presentation - Bigston Corporation

BIGSTON CORPORATION
Quality, Service, Innovation
MESSAGE FROM THE CHAIRMAN & PRESIDENT
We appreciate this opportunity to introduce you to Bigston Corporation.
Since 1972, Bigston has built a reputation for quality service to the electronics industry.
Our state-of-the-art facilities provide a variety of services to industry leaders including inspection, product
renewal and repackaging of electronic products.
We also offer outsourced customer service, manufacturing and logistics programs to our clients.
Bigston employees take pride in helping our customers and are committed to excellence.
Our employees receive on-going technical training and work diligently to achieve total quality in all aspects of
our servicing and manufacturing processes. Bigston is a certified minority enterprise.
Bigston’s commitment to excellence is best demonstrated by the long-term relationships we share with some of
the premier names in the electronics industry.
We invite you to review the enclosed material to learn how Bigston can offer solutions to your servicing needs.
In addition, we are available to answer any questions you might have about our facilities and services. We
would be pleased to provide you with a customized proposal for your product renewal, servicing, manufacturing
or outsourcing project.
Again, thank you for considering Bigston Corporation.
Sincerely,
Kimitaka Sekiguchi
Chairman and President
2
WHO WE ARE AND WHAT WE DO
WHO WE ARE
 A privately held U.S. Corporation
 Bigston is certified as a minority owned and controlled business
 An American company with a Japanese heritage of quality and service
WHAT WE DO

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
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Third party service provider for the electronics industry
Customer service and depot repair
Refurbishment services
Recall and retrofit operations
Fulfillment
Parts Depot
Consumer returns and exchange services
Electronics assembly
Kitting
3
COMPANY PROFILE
Bigston Corporation
 Founded: 1972
 Representative: Kimitaka Sekiguchi
 Address: 255 Beinoris Dr
Wood Dale, IL 60191
 No. of Employees: 50
 Sales Amount: $2.5M/Year
 Business Category:
Refurbishing/Repairing & manufacturing
of Electronics Products
 Phone: 847-439-3500
Bigston de Mexico S.A. de C.V.
 Founded: 2000
 Representative: Kimitaka Sekiguchi
 Address: Ave. Industrial Falcon S/N,
Parque Industrial del Norte
Reynosa, Tamaulipas, C.P. 88730,
Mexico
 No. of Employees: 100
 Sales Amount: $1.3M/year
 Business Category: Refurbishing of
Electronics Products
 Phone: 52-899-929-4454
Affiliated Companies
 BMC (Assembling of NY Subway
Monitors
 BBJ-Japan (Engineering)
4
LOCATIONS
HQ/Factory in USA
255 Beinoris Dr , Wood Dale, IL 60191
24,923 square feet (2,315 square meters)
Factory in Mexico
Del Norte Industrial Center Building #1 - Reynosa, Mexico
75,250 square feet (6,991 square meters)
5
TIMELINE
1989
Started a factory
service center for
SONY
1982
1980
Started
refurbishing
business for
Sharp
Became independent
from HQ and
concentrated on Repair
Service
1988
1981
1979
Started
refurbishing
business for SONY
Moved to Elk
Grove Village
facility
1990
Started
refurbishing for
Panasonic
Added repair service
business. Started
repair service business
for Sears
1972
Started the sales of Audio Equipment as a
subsidiary of a Japanese corporation
6
TIMELINE (Cont.)
2007
2000
• ISO9002
certified
• Founded Bigston
de Mexico (for
Panasonic)
• Started a factory
service center
for Canon
• Minority Company
(MBE) certified
• Started refurbishing
for Onkyo & Casio
Started
refurbishing for
Imation
2011
2003
1997
2012
Expanded
operation in
Mexico (for Sharp)
Started
refurbishing
toner cartridge
for Canon
2013
Started
refurbishing for
Yamaha
Started refurbishing
for Omron
1991
Expanded facility to
65,000 sft.
7
ORGANIZATION
CEO
Takeshi Kusumoto
Has held a variety of
marketing, factory adm.,
customer service positions
at SONY Japan. Started at
Bigston in 2006.
President
Tom Sekiguchi
23 years sales, marketing, domestic & international
supply chain management. U.S. Customs brokerage
license. Started at Bigston in 2005.
VP Sales/Marketing
Ralph Petrella
Started at Bigston since 2005 and has
worked for engineering, customer service
and marketing.
VP Operations US
Rob Findlay
Has held a variety of Sales, customer
service and technical positions at Sony
America. Started at Bigston in 2004.
Manager - Operations
Sasha Ramirez
CTO, IT & Manufacturing
Mike Cullen
Advisor
Kimitaka Sekiguchi
Founder of Bigston Corp. in
the US. Over 40 years
management, marketing,
and manufacturing
experience.
President MX
Tomoko Sannomiya
Started at Bigston in 2007 and has
worked for customer service and
production management.
Has 8 years experiences of IT system programming,
production management with skills of designing
electronic products. Started at Bigston in 2007.
Work experience at Nissan Mexico and Mex. Foreign
Affairs. Has worked as a plant manager since 2001.
Executive Engineer, Eng. & QA
Susumu Kobayashi
More than 40 years QA and Engineering in Onkyo
Japan. Started at Bigston in 2013.
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CORPORATE PHILOSOPHY/VISION/MISSION
Happiness
for
Employees
Product
Quality
Improve
Contribution
Stable Profit
to
Society Customer's
Satisfaction
Corporate Mission
 Provide customers with quicker services with lower cost and higher quality so that the customers would enjoy
his/her equipment over a long period.
 In addition, provide clients of manufacturers with the analysis data of returned defective units so that the
manufacturers could improve their product quality and reduce market defect rate.
Corporate Vision
 Create a company always rated high by society and customers in this field of repair service.
 Create a company with continuous sound management backed by all employees’ cost consciousness.
 Create a company where all employees respect, understand and help each other and feel happy physically
and spiritually.
Corporate Philosophy
 Our behavior principle is “Customer First” and we offer the value to the customers with “Effort, Good Faith
and Technology”.
 We contribute to society and global environment with repair service of electronics products.
9
KYOCERA PHILOSOPHY 1
The Six Endeavors
1. Work harder than anyone else
2. Be humble, not arrogant
(Don’t let success go to your head)
3. Reflect upon your motives
(Determine if your motives are pure. If not, change them)
4. Appreciate your life
5. Do good for others
6. Don’t dwell on the past
10
KYOCERA PHILOSOPHY 2
The Twelve Management Principles by Dr. Inamori
1.
Clearly state the purpose and mission of your business. Set high objectives that are noble, just and
fair.
2. Set specific goals. Once targets are set, share them with all employees.
3. Keep a passionate desire in your heart. Your desire must be strong and persistent to penetrate
into your subconscious mind.
4. Strive harder than anyone else. Work steadily and diligently, one step at a time, never relenting in
tedious tasks.
5. Maximize revenues and minimize expenses. Measure your inflow and control your outflow; don't
chase profit, but let it follow your effort.
6. Pricing is management. Pricing is top management's responsibility: to find that one point where
customers are happy and the company is most profitable.
7. Success is determined by willpower. Business management requires a persistent, "rock-piercing"
will.
8. Possess a fighting spirit. Management requires a more combative mentality than any martial art.
9. Face every challenge with courage. Be fair and never deceive others.
10. Always be creative in your work. Innovate and improve continuously. Today should be better than
yesterday; tomorrow, better than today.
11. Be kind and sincere. Business is based on partnerships and must bring happiness to all parties.
12. Always be cheerful and positive; hold great dreams and hopes in the pureness of your heart.
11
WHY BIGSTON
EXPERIENCE
EXPERTISE
STABILITY & GROWTH
Bigston has been a service
An American Company with a
A private held corporation,
provider to the Electronics
industry since 1972. Our
customers have included many of
the premier names in consumer
electronics including Canon, JVC,
Panasonic, Sharp, Onkyo, Casio,
Sony, Toshiba, Medion, and Sanyo.
Japanese heritage, Bigston
understands superior service and
quality utilizing internal auditing
system and 5S methodology to
achieve best in Class KPI’s.
Bigston has always been
conservatively managed. A
certified Minority Owned Business
(MBE) Bigston’s growth over the
past 35 years has been through
organic growth, not acquisition.
We offer a stable resource to CE
manufacturers, retailers, and
insurance providers.
12
WHY BIGSTON
COMPETITIVE ADVANTAGE
Bigston prides itself on its responsiveness
to our customers’ specialized needs. Our
newest facility, a licensed Maquiladora in
Reynosa, MX. provides Pricing, Speed to
Market, and high volume capabilities to
better meet today’s customer needs.
TECHNOLOGY
From advanced web-based IT systems for
tracking production and quality control to
advanced on-board technical repairs (BGA
machines), refurbishment, fulfillment, demanufacturing, reverse engineering, and
assembly, Bigston is a technology leader.
Product capabilities include LCD (clean room
panel repair), Digital Camera, Home Audio,
Compact Stereo, Gaming, Car Stereo,
Phones, Keyboards, GPS, Vacuums, Air
Conditioners, Printers, POS, Desktop &
Laptop PC, Projectors, Blu-ray, and
Microwave Ovens.
13
SERVICE CAPABILITIES
Third Party Services
 Customer service
 Fulfillment
 Product Kitting
 I/W & O/W Repairs
 Recall/Retrofit Programs
Reverse Logistics
 Consumer returns and exchanges  Reverse Engineering
 Kitting and Assembly
 Refurbishment
 Triage
 De-manufacturing
Manufacturing
 Design services, from concept to full scale production
 One stop shop for life cycle of products
Remanufacturing
 Toner recycling program
 Cost saving solutions
 Environmentally friendly
14
MAJOR REFURBISH/REPAIR PRODUCT CATEGORIES
 Digital camera / Camcorder
 DVD / Blu-ray
 Receiver / Home theater / Mini
system
 Gaming
 Car stereo
 Telephones
 Cell phones
 Electronic musical keyboards
 Guitar
 GPS
 LCD’s / Panel
 Cash register / POS
 Desk-top PC’s, Laptops & Tablet
PC’s
 Projectors
 Microwave ovens
 Blood pressure monitors
 Pedometers/Nebulizers
 Vacuums
 Air conditioners / Air purifier
 Printers (Ink-jet & Laser)
 Shredders
 Toner Cartridge
 Shavers/personal care products
15
MAJOR CLIENTS
Current
16
BUSINESS SUMMARY
Refurbish AV Products
 Purchase/Refurbish/Sell AV
Products
 Repair Customer Units
 Fulfillment Service
 Inventory Control and
Distribution of Repair Parts
 Call Center Service
 Assemble/Sell AV Products
Return
Return
Retailer
Return
Fulfillment
Manufacturer
RMA Receive
Repair
End User
Call Center
As-Is Purchase
Sales
Refurbish
Part Center
17
REFURBISHING PROCESS (USA)
Shipments
from
Dealers/
End Users
Receive in
System and
Create RMA
Discrepancy
Report
Inspect
Repair
Board/Panel
Functional
Repair
BER
Salvaging
Parts
Recycling
Company
Scrapped
Units
Shipments
to
Dealers/
End Users
Shipping
Part
Procurement
& Inventory
Control
Cosmetic
Repair
NPF
Scrap
Cleaning
QC
Manifest
Accessory
Kitting
Rejected Units
Repack
QA
Rejected Pallets
18
REFURBISHING PROCESS (MEXICO)
Shipments
from
Dealers/
End Users
Receive in
System
Receive
in McAllen TX
and create
RMA
Discrepancy
Report
Functional
Repair
Receive in
Warehouse
in McAllen
and transship to
Dealers/
End Users
Mexico
Salvaging
Parts
Transfer to
McAllen USA
Shipping
Scrap
Repair Board/
Panel, etc.
Cosmetic
Repair
BER
Transfer to
Reynosa MX
USA
Inspect
NPF
Part
Procurement &
Inventory
Control
Cleaning
Accessory
Kitting
QC
Manifest
Rejected Units
Repack
Scrapped Units
Recycling Company
in Reynosa
QA
Rejected Pallets
19
VOC – KPIs FOR CUSTOMER SATISFACTION
QUALITY
• QA reject 0%
• Inventory accuracy 100%
COST
• Lower cost of labor, packing materials and transportation
• Lower scrapping ratio of units/parts
TIME
• Flexible production capacity
• Shorter TAT for IW Customer Service < 2 days
• Backlog for Refurbishing < 0.3 Month on Hand
(IRP Ordering and Accurate Forecasting of Parts Usage)
20
QUALITY CONTROL
VOC - QA Reject 0% Inventory Accuracy 100%
Quality Control for Refurbish & Repair
MIL Standards AQL=1.5
Lot Size: 51-80
Sample: 13
1 Defective Unit  Lot Reject
 Feed-back of Technical Data of Returned Defective Units to manufacturers
–Support factory quality audits on new models (frequently)
–Report to evaluate new models (weekly)
–Provide epidemic failure parts samples for factory analysis (as needed)
21
BIGSTON IT – COMPUTER BASED SYSTEM
Bigston has a sophisticated computer
system to coordinate all processes.
• Java web based system - Accessible from any
browser
• Real-time production
• Rapid development and turnaround
Capability to integrate via edi/XML/flat file
enables data transfer between systems
• Set up RMA pre-alerts
• Send fulfillment requests
• Inventory transactions and synchronization
22
BIGSTON IT – COMPUTER BASED SYSTEM
Flexibility to customize system
reports to suit your needs
Bigston’s customers have direct
access to information using the
Internet.
23
TAT
VOC - Flexible Production Capacity
Shorter TAT for IW Customer Service < 2 days
TAT for Jan. 08 - July 08
Backlog for Refurbishing < 0.3 Month on Hand
6.8
Production for Jan 08 - Jul 08
30,000
18,697
15,344
15,000
2
10,000
20,820
18,228
2.9 2.7 2.7
3
5.4 5.3
2.3 2.3 2.3 2.2 2.1 2.3
19,049
15,810
20,000
18,496
17,171
20,208
4
25,822
25,000
19,224
24,601
5
4.9 4.7
4.9
5
30,000
4.7
24,410
5.7
4.4
3.7
20,000
1.8 1.9 1.6 1.7
4.3
4.3
25,000
26,447
22,325
6
6
21,852
6.3
23,044
19,634
7
19,534
7.15
20,365
16,118
8
3.6
3.5 3.2
15,000
1.3
1.6
10,000
1.9
1.3 1.6 1.5
1
5,000
5,000
0
765
546
602
613
473
508
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
r
M
ay
Ju
ne
Ju
ly
Au
g
Se
pt
O
ct
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Ja c
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Ju 8
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0
Estimation Production
Technical Production
Quantity Received
QC Rejects
Daily TAT
Overall TAT
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COST REDUCTION
VOC
- Lower Cost of Labor,
Packing Materials
and Transportation
- Lower Scrapping
Ratio of Units/Parts
LCD Panel Repair
Camera Lens Repair
Component Level Repair
Bigston has focused on
component
level repair for Lens Assembly
of Camera and Mounted Circuit
Boards of LCD TV, Camera, and
Gaming, to reduce the repair
costs. The LCD panel repair is a
recent addition.
Diagnosis by techs & repairing
by parts changers
Recycling of Packing Materials
Recycling of cardboard
boxes for packing cushions
Utilizing cost effective labor in
Mexico for labor intensive work
Re-painting of cabinets
25
BUSINESS MODEL (1) FOR CLIENT’S COST REDUCTION
Purchase As-Is + Refurbishing
High Tech
Products
Sell
Returned
Products
RMA
Credit
Retailers
Manufacturer
Bigston Elk Grove
Return
Center
In IL
RMA
Process
Border
RMA
Process
Dealers
Retailers
Return
Center
In TX
Labor
Intensive Refurbishing
Work
Bigston Mexico
Sell
Refurbished
Products
26
BUSINESS MODEL (2) FOR CLIENT’S COST REDUCTION
Bigston’s Return Center in McAllen
RMA
Credit
Retailers
Manufacturer
Receive and re-ship
Returned Products
Extra
Freight Cost
Bigston started to receive Returned
Products and process RMA check on
behalf of Manufacturers in McAllen
Return
Center
In TX
Save
Freight Cost
Border
Refurbishing
27
BUSINESS MODEL (3) FOR CLIENT’S COST REDUCTION
Bigston’s Fulfillment Service with Drop Ship
Receive and re-ship
Refurbished Products
RMA
Credit
Extra
Freight Cost
Retailers
Manufacturer
Dealers
Retailers
Save
Freight Cost
Return
Center
In TX
Border
Drop-ship
Stock
Refurbishing &
Fulfillment
28
PROFILE BIGSTON DE MEXICO
Bigston de México, S.A. de C.V. (operating since Dec., 2000)
Space (sq ft)
Warehouse &
Production
Locker Room
Cafeteria
Office
Maintenance
Aisle
Others
T O TAL
Headcount
58,673
16,577
75,250
Plant Manager
Manager
Supervisors
Prod. Leader
QC Inspector
Technician
Parts Changers
Warehouse
Receiving/Shipping
Operator
Others
(Indirect 12 / Direct 79)
T O TAL
Operation Status
1
2
1
5
8
30
5
3
1
29
6
Production Categories *24
(handling 3 customers)
Shifts
2
Refurb Capability (units)
50,000 / month
*Capability can be brought
up by increasing HC or
setting up 2nd shift.
91
* Product Categories
Mini-System, Car Audio, Boom-Box, Small Audio, Portable CD, Microwave Oven, Commercial MWO, VCR, DVD,
Receiver, Home Theater, Camcorder, Shavers, Vacuum cleaners, Power Tools, DVC, DSC, Telephones, LCD,
LCD Panel, Projector, Air Conditioner, Air Purifier, Calculator, Organizer, Printer (Ink-jet & Laser) and Tablet PC.
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INDUSTRIAL PARKS – McALLEN/REYNOSA
Source: McAllen Economic Development Corporation
30
IMEX FLOW
Unload
Customer USA
Receiving/
Credit
Data Entry
Work Order
Stage
Verify
Bigston
File of Export
Contents
Qty/Model/
Descriptions/
CO/Wt/Price
Unload
Verify
File/Product
Broker
U.S. Custom Broker
Validation of
U.S. CBP
MX Custom Broker
Invoice
for
Customs
Pedimento
SISTEMAQ
USA
MX Custom Broker
Send Go
Sign & Info.
Trailer #
Departure Time
Truck #
Drivers Name
Invoice #
Content
All
Load
Forwarding Ag. & PSC
Transfer Company
Verify Load
Pick-up
Trailer
Customs
Clearance
Cross
Border
Pedimento
Unload
Reynosa
Verify
Invoice
Refurbish
Customs
Purpose
MEX
Record
Model/Qty
Incoming Report
by
Pack/Label
Palletize
Verify/
Pallet/
System
Customs
Clearance
Make File
of Export
Contents
Load
MODEL
QTY
C/O
WEIGHT
COST
Pick-up by
Transfer
Co.
MANUFACTURING
TIMEDOMAIN light (White) - Eggshaped Audiophile Quality
Speakers
• Patented egg-shaped design.
• Compact, lightweight,
easy to carry, and stylish.
• Delicate and natural sound.
• Built in amplifier.
• Perfect for iPod, iPhone, iPad,
MacBook
• Made from high quality powdercoated aluminum 9
• Heavy Duty, long life foot switches
20 Banks, 6 MIDI notes per bank
• Assignable program changes per
button PAD mode: play synths or
pads with your feet
• Dedicated 'STOP' button across all
banks
• 5-pin MIDI & expression jack
• All-access bank & 16 MIDI channels
• USB bus powered or 9V power
supply
Yoshii9, largest of the
TimeDomain speakers, can fill
larger areas with full, rich
sound. Speaker diagram faces
upwards instead of forwards,
allowing the music to spread
evenly throughout the room
without directionality.
32
REMANUFACTURING
Waste Toner Cartridge Recycling Program
Waste toners are the container used to collect the toner waste from the 4 color cartridges being used in a copy machine. It
serves an important purpose for many laser machines. Like the brake pads on a car, waste toner bottles are not often talked
about but can cause problems when they stop functioning.
Benefits:
•Cost Savings
•Environmentally Friendly
•Recycling savings
•Containers have an extended service life
Before
After
33
SECONDARY MARKET SALES
Bigston has a robust and diverse sales network to sell your refurbished products, excess
inventory, shelf pulls, phase out inventory, etc. into the secondary marketplace.
• Protect your primary market channel
• Recover highest possible revenue for your returns
inventory
• Flexible options such as ‘As Is’ purchase, revenue share
on sold inventory, and commission sales rep with tiered
sales volume pricing
34