DISTRIBUTION
How effective G
lobally, businesses are constantly under threat of major disruption because of problems beyond their control, whether it be the global pandemic, Brexit or the wars in Ukraine and the Middle East. However, despite the troubling times of late, there are several things that businesses can do to protect themselves against the chaos. Here, Lee Slater, European operations manager at electrical connector specialist PEI-Genesis, shares his top three tips for maintaining an effective electrical connector distribution network despite all the current global challenges and the disruption they can cause. Electrical connectors are critical components in most major industry sectors, from aerospace and defence to healthcare and medical to devices and even oil and gas. Therefore, it is crucial that connector suppliers can maintain component supply, regardless of ongoing global situations, or most major industries will suffer as a result. Naturally, geopolitical issues are beyond any business’ control, but this does not stop them having major impacts on operations.
Inventory management The first thing businesses can do to protect operations against supply chain disruptions is maintain strategic stockpiles of critical connectors. This means that, in the event of system failure, maintenance can be
20 MAY 2024 | ELECTRONICS FOR ENGINEERS
distribution helps navigate global challenges
Top three tips for maintaining electrical connector supply despite ongoing global disruptions beyond your business’ control
conducted quickly and effectively, without waiting on long lead times caused by the macro geopolitical issues beyond their control.
Going back five or ten years, businesses tended to use a just-in-time (JIT) strategy, where they aligned materials orders from different suppliers with their production schedules to minimise inventory requirements and associated storage costs. However, it is now clear that businesses should switch from a JIT approach to using a just-in-case one (JIC) instead. JIC strategies help ensure ongoing component availability despite supply chain disruptions, meaning businesses can reliably keep operations going, even in the event of increasing component lead times.
Component diversification Next, businesses should have contingency plans for the possibility that sourcing electrical components, such as connectors, from a particular manufacturer becomes challenging as a result of these issues. This means that if a disruption hits a particular region, or supplier, that there are ready- made backups in place to minimise delays and keep systems up and running. PEI-Genesis can help with this as it supplies connectors from most major manufacturers, including Amphenol, ITT Cannon, Nicomatic and Positronic, and also has its own
proprietary connector brand, Sure-Seal. This means it can always support customers with a suitable connector for the job regardless of any one supplier’s production status.
Local supply and support Finally, working with suppliers with global supply footprints helps minimise disruptions as it means components can be sourced locally without relying on global shipping conditions. This is critical as, since the coronavirus pandemic, shipping times from China more than doubled.
Furthermore, there has been a global shift in buying preferences in recent years, with most businesses now preferring to source components from local suppliers, reducing lead times and shipping costs and improving access to support when needed. This is particularly true in the US, where President Biden has introduced the Made in America plan to encourage businesses to buy in America with financial incentives. PEI-Genesis has facilities in Southampton, UK, Philadelphia, US, and Zhuhai, China, meaning it can supply electrical connectors and technical support across Europe, America and Asia as swiftly as possible. Furthermore, we have invested significantly in our connector inventory in recent years to now stock over ten million dollars more connectors than we did two years ago.
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