A visit to Matomo Technologies, HP`s Proudly South African PC assembly partner, reveals a modestly-sized operation that can put out 650 to 700 PCs a day, combining low cost, quality, productive staffing policies and a high black empowerment quota.
Fabrizio Burba, GM of Matomo, a subsidiary of the Matomo Group, says both parent and subsidiary are around 85% "empowered".
Once it was smaller than the current 1 300m^2. "We started out with one assembly line in March last year. With that, by April this year - the month in which we assembled the Independent Electoral Commission order for 2 000 PCs - we put out 10 000 PCs. Meanwhile, we expanded. We worked pretty long hours."
In September 2003, Matomo moved to its current facility in Midrand with 30 assemblers and some temporary assemblers on hand to cut costs, four support technicians for a total of 70 000 PCs produced thus far and three management members.
Assembly here
Matomo only does a few configurations, focusing on specs that allow it to contain cost. "But we are able to supply modifications, also high-powered machines, if that is what the customer wants," says Burba.
Although Matomo operates independently, Burba makes it clear that HP`s hardware configurations are what it follows, and the distributor (not Matomo) requests any modifications from HP.
Burba explains the channel model: "Distributors such as Tarsus, GLAD and Axiz import the parts, supply them to us, we build the PCs according to the order and HP`s [and Microsoft`s] specifications, and supply them back to the distributor, which sells to a reseller."
Despite the many links in the value chain, the end-user can expect to pay R4 999 to R6 999 for PCs, specced up to P4 CPU, 256MB RAM configurations.
Burba adds that many components can be sourced locally, including memory (Kaliba Technologies), Microsoft`s certificate of authenticity and replication and imaging disks (by Bowline), as well as the "pizza box", which holds some ready-to-assemble parts. These include install guides, Chinese keyboard, CDs, Chinese mouse (this can also be sourced locally), and a local power cable. The box holding the finished PC is also local.
The chassis, with power supply and motherboard, is Chinese. The packaging of these components is "sardine-like" freighting. "Assemblers buy in more efficient freighting formats."
Another saving comes in Matomo`s low support costs - from inception, serial numbers of components were made to correspond with motherboard and chassis, combating fraudulent support claims and driving failure rate down to 1.6%, well below industry average, says Burba.
Full serial number histories are uploaded nightly to HP`s Houston office in a demonstration of the strict specifications in accordance with which assembly is undertaken. Burn-in - a running test - is done for a maximum of one hour.
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