Experiencing longer lead time? Solution is already here!

SourcingBot
Aug 22, 2017 · 4 min read

According to the Electronic Components Supply Network (ECSN), the global demand for electronic components is increasing. This growing demand has created extended lead-time problems. A smaller number of products have lead times of up to a year. Lead times could continue to increase causing problems for a supply chain.

ECSN Chairman Adam Fletcher explains [https://www.electronicsweekly.com/news/business/distribution/demand-surge-causes-shortage-components-2017-07/], “Stronger-than-forecast global demand for components has followed an extended period of low capital investment by the companies that make them.”

Challenges in the supply chain sector

Most manufacturers and their authorized distributors work hard to resolve supply problems and offer customer protection from extended lead times. Some companies may experience extended lead times if risk management issues are not resolved. Delays in supplying electronic components occur when suppliers cannot respond to changes in demand.

Sourcing, product development, procurement, marketing and distribution are all supply chain functions. Sourcing improves quality and lowers prices while adding value to the supply chain.

Technical innovations within the electronics industry have helped increase the availability of electronic components in the global market. Consumer demand for these products depends upon the reputation of high quality electronic components. Unfamiliar and unknown electronic components may lead to lower consumer demand.

The electronics industry is constantly facing competition as newer technology products enter the global market. Makers of electronic components continue to research and monitor existing customers due to changes in customer preference. Both products and markets call for constant research and development.

Risk management for the supply chain

B2B companies can use historical information to develop risk management strategies to resolve frequent delay problems. Supply chain visibility helps resolve delays in the supply of electronic components. A global tracking network system can help customers track the status of orders while waiting for delivery. Companies can monitor and reduce the risk of delays.

Electrical component suppliers depend upon the capability to deliver a few components to a hobbyist or thousands to a manufacturer within a given timeframe. Delivering enough quantities to customers ensures that the suppliers of these electronic components maintain customer relationships for future business growth in the global market.

Supply chains are complex and face many challenges during the logistics stage. Some problems can include incorrect delivery addresses or delivery to hard-to-find locations. Parking, traffic and product damage are other delivery issues B2B companies need to address. These problems can cost electronic component manufacturers time and money.

Incorporating technology in the warehouse can improve the sourcing process for B2B suppliers. These solutions will help to eliminate human error. A cloud-based solution connects mobile workers to back-end systems that share real time information. The electronic component companies will benefit from these higher levels of productivity.

Risk management includes faster service, the acquisition of alternative processors or cameras for a mobile phone. Warehouse employees can work faster and more efficiently when their hands are free for other tasks. Improvements to customer service can lead to increased sales of electronic components. Companies benefit from a streamlined supply chain, better visibility, huge cost savings, fewer product returns and happier customers.

Supply chain startup Pin2Pin is solving the problem

Pin2Pin is working to solve the problems smaller manufacturers are encountering. Pin2Pin is collecting data on search volumes for specific part types. Present seasonal trends include the ability of customers to purchase parts at different times of the year when there are more supplies available. When there is a greater inventory of electronic components, then the ability to save time and manage inventory costs is greater.

Pin2Pin can use technology and data to stay abreast of market trends. Tracking and analyzing the data for electronic component marketing trends provides needed production information. Production can change to meet the needs of the market. Pin2Pin is working with a part manufacturer to build a data platform that will help predict future market trends for electronic parts.

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SourcingBot

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Electronic component marketplace

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