3 Reasons Why Independent Distributors Are Your Best Electronics Supply Chain Partner
We see a mixed outlook for the current shortage – from how long it will last to which components are affected. But one thing all industry professionals agree on is that the electronics supply chain is becoming more complex than ever.
In 2022, dozens of products in the supply chain will either be out of stock or see price increases of 10-40%, including raw materials, electronic components, packaging materials, and semiconductors. A variety of factors are driving these shortages and price increases, from procurement to raw materials to labor and logistics. Combined with rising demand for electronic components driven by 5G and the Internet of Things, the current supply challenges are exacerbated.
Critical component lead times further complicated an already challenging logistics. Now is the time for OEM and EMS companies to branch out from traditional distributors to protect supply chains from future disruptions. A great electronics supply chain partner should:
1. Build a global supplier network to minimize supply disruptions
We’ve said this before, but it bears repeating: the scope of sourcing matters critically during times of shortage. Complex global supply chains are easily tripped up by factors such as weather and shipping accidents. Accessing global supply nodes can ease these challenges.
It’s important to note that scope of support offered by an independent distributor should match their range. With a global supplier’s extensive range, that means you need 24/7 support, no matter your location. Multilingual team members can ensure that no matter your sourcing needs, you’ll work with someone who can handle issues smoothly. Tariffs and other factors complicating logistics should be managed by experienced professionals.
An electronic supply chain partner may access global hubs to cut your lead times and get access to the inventory you need, but you should enjoy working with them while this is happening.
2. Offer a wide range of services to meet your needs in any market conditions
Going outside your standard sourcing channels presents opportunities even during the best of times. Finding value opportunities takes creativity and commitment from a sourcing partner whether the market is hot or not.
Customization of offerings from an electronic supply chain partner should take into account your specific needs and pain points. Finding a partner that approaches challenges with enthusiasm and enjoyment provides that extra edge as well. Bring your biggest challenges to the table, and see what an independent distributor can offer. Creative approaches include ideas like leveraging data to find ROI on your excess components during a shortage.
3. Bringing robust quality processes to your procurement
By casting a wider net, you bring in more sourcing options, but risks are inherent in the electronic component supply chain. This is not a challenge unique to electronic distributors. In fact, no link in the electronic components supply chain is immune to these challenges.
Any electronic supply chain partner must demonstrate rigorous quality control measures for all of their suppliers. Demanding exceptional quality for all parts requires a well-designed process of thorough vendor vetting and oversight. Established vendor relationships create an excellent baseline. But ongoing supplier management is what sets an exceptional supply chain partner apart. The quality control process should offer open access to audit and engage, allowing you to gain insight into how your electronic supply chain partner is ensuring the success of your sourcing and the overall health of the supply chain.
To summarize:
Independent distributors can engage global supplier networks, offer a range of logistics solutions, and ensure robust quality control, making them the ideal electronic supply chain partner among any market conditions.
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