Distribution
Electronic distribution supply chain during Covid-19
As the electronic supply chain continues to experience considerable delays, we summarise some of the supply issues the industry is currently facing and the contingencies you can put in place to protect your stock
T
he power electronics industry is continuing to feel the strain and disruption from the impacts of Covid-19. The global pandemic is still sparking anxiety amongst electronics manufacturers as the world is starting to overcome and recover from it. Supplier delays are becoming increasingly common not just because of Covid-19, but also due to Brexit, material shortages, mergers causing urgent requirements for system upgrades and the forever growing demand from the automotive industry for electric vehicles.
At a time when the industry is trying to quickly recover and increase production, manufacturers are naturally anxious about getting back on track and fulfilling the increased demand. The delays will likely have a ripple effect on the industry for the rest of the year, the longer the supply chain is affected by the epidemic, and the more it spreads to other parts of the world, the more fragile and open to various strains the supply chain will be. Custom delays are another reason for lengthily lead times, caused by a combination of factors, including Covid-19 and Brexit. A large number of manufacturers are also suffering from material shortages which is putting an unexpected strain on the industry, particularly those semiconductors that are required for EVs and EV charging systems. With large key players merging with similar positioned brands and OEMs, the buy-out company has to adapt to new IT infrastructure which can sometimes cause slight delays to the end customer. Whilst buyers and procurement specialists often experience electronic components lead times being pushed out, an abundance of new projects that had previously been put-on hold because of Covid-19 are starting to gain momentum again. This can often prove difficult for engineers who have designed parts in specifically for a project, having worked out their costings, launch timescales, roll-out programme and in some cases, a maintenance schedule, are often looking for parts to be readily available.
40 May 2021
It’s important during times of uncertainty that buyers and distributors work closely to nurture their relationship and ensure their supply chain remains with as little disruption as possible.
GD Rectifiers explores the five simple steps purchasers can take to ensure the fastest possible time to market for your power electronic components and applications, avoiding any unnecessary delays to your supply chain.
Extend order coverage
Manufacturers and distributors are strongly encouraging customers to put together an annual forecast or place a forward order so they have order coverage for 3-6 months depending on usage. Customers are encouraged to work with distributors to ensure they have buffer stock in place and on the shelf, ready to be sent out when demand increases. The benefit of creating order coverage, or increasing your existing coverage is to protect customers from any unexpected supply chain issues, including delays, material shortages, increased demand in other sectors like the automotive or medical industries. Customers should also be rest assured that in the event that demand starts to slow down or there are any unforeseen changes to the demand, customers can start to slow down orders with the factories to allow the stock to start moving.
Explore replacement or like for like components
When lead times are pushed out, buyers should consider exploring a replacement component instead. Sourcing an alternative part in the interim can be a difficult and time- consuming task which is where distributors can help. Distributors are best placed to offer recommendations for customers based on the product specification and end application, providing an impartial proposal with the best and fastest solution in mind. GD Rectifiers partners with the majority of its customers as a sole provider, ensuring all of their requirements
Components in Electronics
are in one place, eliminating the need to spend valuable time and resources dealing with multiple suppliers.
Discuss designing-in a new component
Distributors can work with customers to facilitate designing-in a new component which is often required when a part becomes obsolete or is no longer suitable for new designs and applications. The benefit of using a newer, modern-day component is that it will have an increased product life-cycle, should be easier to repair or replace when carrying out routine maintenance work and should help prolong the life of your systems with minimal delays. Distributors can also work with the OEMs to design-register a custom part, manufactured for a particular job, which disables any other company from using that part, giving you the peace of mind you need to trust your design with us.
Consider product contingencies In large organisations that have supply chain teams and departments, many buyers find it helpful to have an online product contingency system which highlights other part numbers that can be used in lieu of the original components. Customers can work closely with their supply chain teams on creating a list and updating it frequently when new designs break through and older modules are made obsolete. Distributors can occasionally support the teams with this process and work with you to offer electronically and mechanically interchangeable parts. The benefits of having this list or function in place, is to ensure buyers can react quickly when product availability is limited, for reasons such as: factory shutdowns,
machinery breakdowns, maintenance work, material, fab or die issues, product clearing issues at customs or if the product is in exceptional demand. This is something only larger organisations tend to be able to take advantage of because the system has to be updated regularly with new and obsolete parts removed and added in real time.
se a distritr that hlds scient inventory
Customers should choose a distributor that holds sufficient stock and can provide a temporary buffer to your allocation if required when lead times lengthen. With over 170,000 components in stock on our shelves ready to go, GD Rectifiers are well equipped to handle your power electronic component requirements. GD Rectifiers works with customers to mitigate stock shortages by encouraging them to hold stock at their factory which allows us to track component usage and prompt customers when a reorder is required.
Distributors like GD Rectifiers, work with customers to provide ongoing technical support and advice, consulting on new projects from concept right the way through to installation. We can also help engineers with refurbishments and routine maintenance work, providing you with the information you need to have the confidence to carry out upgrades and replacements. We provide technical expertise every step of the way, whether it be to provide a solution for a cost-saving exercise or to improve the reliability and performance on an existing system, we partner with customers to find the right solution for you.
gdrectifiers.co.uk www.cieonline.co.uk
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