# Ep. 2 - Sourcing: A Broad Overview

- Show: [Open Hardware Manufacturing Podcast](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast)
- Published: 2023-08-03
- Length: 1h 03m
- Page: https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview
- Listen: http://opulo.io

## Summary

Stephen Hawes and Lucian Chafar of Opulo discuss sourcing strategies for their LumenPnP pick-and-place machines, covering vendor selection on Alibaba, the importance of WeChat for communication, and negotiation tactics. They detail the process of validating components through samples, using GD&T for critical parts like staging plates, and managing cash flow by balancing air freight speed against sea freight cost savings. The hosts also explain Incoterms (FOB, DDU, DDP) to manage import duties and shipping responsibilities, emphasizing the need for dual-sourcing to mitigate supply chain risks.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=0) Introduction and Sample Validation
- [10:01](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=601) Engineering Validation and GD&T
- [13:02](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=782) Finding Vendors and Using WeChat
- [25:34](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=1534) Negotiation and Price Breaks
- [35:36](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=2136) Payment Terms and Banking
- [42:13](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=2533) Incoterms: FOB, DDU, and DDP
- [53:04](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview#t=3184) Reordering and Managing Relationships

## Topics

- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Prototyping & iteration](https://hardwarepodcasts.com/topic/prototyping)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Logistics & fulfilment](https://hardwarepodcasts.com/topic/logistics-and-fulfillment)

## Most relevant to

early-stage companies

## Mentioned

- LumenPnP (product)
- Alibaba (tool)
- WeChat (tool)
- AliExpress (tool)
- McMaster-Carr (company)
- PCBWay (company)
- RobotShop (company)
- Servocity (company)
- Amazon (company)
- DHL (company)
- UPS (company)
- GD&T (other)

## Related episodes from other shows

- [Overcoming Global Supply Chain Obstacles in Electronics](https://hardwarepodcasts.com/podcast/ontrack/2025-10-29-overcoming-global-supply-chain-obstacles-in-electronics) (OnTrack)
- [Mitigating Risk Through Smart Procurement w/ Aaron Brimer](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2020-12-22-mitigating-risk-through-smart-procurement-w-aaron-brimer) (The Manufacturing Executive)
- [Scaling Manufacturing](https://hardwarepodcasts.com/podcast/oxide-and-friends/2025-09-19-scaling-manufacturing) (Oxide and Friends)
- [How to Evaluate Suppliers and Manufacturers with Mike Morena and Shawn Litingtun](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-04-10-how-to-evaluate-suppliers-and-manufacturers-with-mike-morena-and-shawn-litingtun) (Predictable Designs Podcast)
- [What's In A Name?](https://hardwarepodcasts.com/podcast/the-amp-hour/2010-08-07-whats-in-a-name) (The Amp Hour)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Open Hardware Manufacturing Podcast.