Electronic Component Procurement and circuit board components Sourcing Solutions

Q: What are some key metrics to track for electronic component procurement performance?

A: Key metrics to track include:

• Supplier lead time accuracy – Ensure quoted lead times match actual delivery times.
• Supply chain flexibility – How easily can you switch volume between suppliers?
• Component quality – Monitor defects-per-million and field failure rates.
• Procurement costs – Track costs over time to identify improvement opportunities.
• Inventory turns – Faster turns mean you are managing inventory levels optimally.
• Component shortages – Quantify the revenue impact of component allocation and shortages.
• Counterfeit infiltration – Detect and log occurrences of counterfeit components.
• Time-to-market – Impact of component availability on product introduction schedules.

Q: How can you identify the optimal suppliers among the thousands of options globally?

A: Key factors in identifying the best suppliers include:

• Technology specialization – Suppliers focused on specific component technologies.
• Quality certification – Suppliers certified to critical standards like ISO-9001.
• Reliability data – Suppliers willing to share reliability data on their components.
• Technical support – Availability of engineering resources for troubleshooting and keeping designs up to date.
• Business stability – Favor well-established suppliers vs. unproven ones.
• Logistics capabilities – Suppliers with warehouses near your factories simplify shipping.
• Responsiveness – How quickly do suppliers address requests for quotes, samples, etc.
• Previous experience – Consider supplier relationships from other companies.
• Volume capabilities – Ensure suppliers can support your production volumes as you scale.

Q: What is the best way to manage costs in an unpredictable component market?

A: Recommended techniques to better manage procurement costs include:

• Aggregate orders – Place less frequent bulk orders instead of many small ones.
• Leverage long-term contracts – Agree to consistent pricing for specified terms.
• Pursue supplier partnerships – Work closely with suppliers for mutual benefit.
• Design with flexibility – Allow alternative component choices depending on market dynamics.
• Pool demand – Coordinate procurement across business units or sites.
• Monitor market trends – Stay on top of shortages, price swings, and market forces.
• Use distributors – Leverage authorized distributors for buying flexibility and economies of scale.
• Standardize designs – Reuse designs and components across product families to maximize volumes.
• Perform online auctions – Use online platforms for competitive bidding.
• Offer volume discounts – Negotiate better pricing for aggregated orders.

Q: How can you tell if you are receiving authentic vs. counterfeit components from suppliers?

A: Strategies for detecting counterfeits include:

• Purchase from authorized channels and distributors only. Avoid untrusted brokers or aftermarket sources.
• Physically inspect components for exterior defects and inconsistent markings.
• Verify lot codes and date stamps match official numbering systems.
• Perform sample x-ray inspection of internal structures for alterations.
• Confirm electrical parameters like consumption, output, response times, etc. match datasheet specifications.
• Check for blacktopped or remarked surfaces that may hide exterior changes.
• Validate certificates of compliance and material analysis reports for chemistry consistency.
• Conduct failure analysis on suspect components to determine cause.
• Leverage dedicated counterfeit detection technologies like laser scanning, thermal imaging, acoustic microscopy, and others.

Q: What are some ways to get better pricing from electronic component suppliers?

A: Tactics to get better component pricing include:

• Consolidating spend to fewer suppliers to increase volumes.
• Entering into long-term volume-based pricing agreements.
• Paying early to take advantage of early payment discounts.
• Leveraging distributor relationships for aggregated discounts across suppliers.
• Having suppliers compete for business through quoting processes.
• Using EMS providers that aggregate orders across customers.
• Ordering in bulk quantities rather than small orders to get quantity breaks.
• Removing costly special requirements like custom packaging.
• Downselecting to lower cost standard components vs. expensive proprietary ones.
• Sharing future demand forecasts to help suppliers with planning and allocation.
• Committing to minimum order quantities.
• Avoiding highly constrained components that carry supply premiums.
• Switching to newer component families with better pricing due to technology maturation.