Sourcing thermal imaging detectors: Everything you need to know from signing a contract with a supplier to final delivery

In the thermal imaging industry, it can take a significant amount of time to launch production on components and deliver them. This is due to the industry’s rigorous authorization processes and complex contracts between customers and suppliers. Unfortunately, these things cannot be avoided. This is because thermal imaging is a regulated industry. For security reasons, there are safeguards in place to prevent infrared technologies and products from being used for purposes other than those for which they were intended. When evaluating a potential supplier, it is important to find out how your supplier will handle each of the many stages involved from drawing up the initial contract to delivering the final product.

Read on to learn more about how one infrared detector manufacturer onboards new customers and their projects.

• The initial assessment

The infrared detector manufacturer begins by assessing the customer’s needs. This step is crucial in allowing the supplier to determine whether or not they can actually serve this customer or not. The customer’s project, objectives, and target market will be assessed via a detailed questionnaire. The idea is to secure the future partnership and to begin to get an idea of the scope of the relationship to lay the groundwork for trust-based and efficient collaboration. Here again, the supplier has certain legal obligations. Thermal imaging detector exports are tightly regulated.

Next, the supplier will have the potential customer approved by a compliance auditor to ensure that there are no regulatory or ethics issues. Suppliers often have their own in-house regulatory compliance departments for this purpose. The supplier’s compliance experts will look at a set of indicators, such as the end product, target market, and destination country, to make sure that any laws that apply to the project will be adhered to and that the project does not raise any ethics concerns. Government authorities determine the list of countries authorized for infrared detector exports depending on the geopolitical situation. And the list changes from time to time. So, it is important for your supplier to be up to date on the latest regulations.

It can take a significant amount of time to complete the qualification process. However, it is necessary in order to secure the relationship and make sure that you will actually be able to manufacture your future product. If your supplier fails to adequately complete the necessary regulatory filings, for example, you could be subjected to penalties and product deliveries could be brought to a halt, maybe even permanently. Finally, this assessment phase gives you an opportunity to lay the foundations for a long-term partnership based on trust, a must for a quality customer-supplier relationship.

Would you like to learn more about the customer onboarding process? Book a fifteen-minute call with our customer onboarding expert to find out what criteria you need to consider and get answers to your questions.

• The export license application

Once the customer has been qualified by the supplier, the next step is to apply to the relevant government agencies for an export license.

Your supplier should be experienced with the application process to avoid wasting time and delaying the production and delivery of your product. Therefore, it is important to choose a supplier with expert knowledge of export regulations and of the expectations for the export license application. 

• Manufacturing and delivery

Once an export license has been granted for your product, your supplier can schedule production and delivery of the volume you have ordered. At this stage, your supplier should be able to provide you with a firm delivery schedule. In the thermal imaging industry, production cycles are several weeks long, especially for cooled detectors. The main thing, however, is on-time delivery, or OTD, which is what allows you to keep your own schedule running on time. OTD is a key indicator of your supplier’s credibility and the quality of the customer-supplier relationship. 

The ability to effectively navigate all of these stages is vital when launching a new product. Your time to market will depend heavily on how reliable your supplier is. In terms of your business, the capacity to predict time to market is important. You have to be able to ensure that your product will reach the customers who need it when they need it. There are a few additional steps to consider to ensure that production goes smoothly. The support of a supplier that understands your needs and requirements is essential.

Would you like to learn more about the customer onboarding process? Book a fifteen-minute call with our customer onboarding expert to find out what criteria you need to consider and get answers to your questions.