Power
Procurement strategies for electronic components
As the power electronic supply chain continues to experience considerable strain, GD Rectifiers explores the increasing importance of distributors within the automotive industry
T
he projected annual growth rate of electronic components is expected to increase by seven per cent between 2020 and 2030 due to the latest automotive
trends such as electro mobility, autonomous driving, digitalisation, connectivity and new mobility concepts.
The forecasted growth rate means that original equipment manufacturers (OEMs) and suppliers have to plan with an increasing number of variants, resulting in the demand for many more components. Vehicles and components will have much quicker development times and shorter product lifecycles so buyers must adapt quickly to the product itself and understand production capacities. The anticipated demand could cause problems for various electronic components leading to a shift in the relationship between customers and distributors.
Traditionally a lot of high-volume business in the automotive industry has been direct business between manufacturers and OEMs and electronics manufacturing services (EMS) providers. However, the distributor’s role is changing and in times when component allocation is at its maximum capacity and lead times are significantly increasing, it’s imperative for buyers to maintain close relationships with distributors.
When buyers and procurement specialists explore buying options, they consider component availability, different packaging quantities and alternative packaging sizes. They can also explore components with wider specifications and higher tolerances, which whilst being a suitable alternative, might cost more. Buyers can also explore higher quality grades, temperature ranges and even alternative supplier products that deviate from the OEM.
Most distributors offer tools that match components via their in-house search engines and in addition to finding alternative options, distributors offer extensive support and assistance throughout the component sourcing process.
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customer demand and expectations are continuously met. GD Rectifiers prides itself on its attention to detail from a customer’s initial touchpoint and ongoing customer service right the way through to delivery and installation. Distributors will keep clients up to date on industry news and developments such as component obsolescence, account information, order updates and product performance reviews. GD Rectifiers works with its longstanding customers on their QA strategies and documentation required to support industry compliance.
In order to minimise risks, buyers and distributors could partner together to highlight a second source during the design phase, which will add flexibility and a contingency, should products obsolescence affect the design or end application later down the line. Components such as resistors, capacitors, discrete semiconductors and integrated circuits can be replaced with similar package variations.
One of the main advantages of partnering with a distributor on short- and long-term procurement strategies is that in a very crowded and competitive marketplace they know the market and products exceptionally well, including the latest developments and they can provide an overview of available technologies, reduce response times and act as a consultant and service provider during the development phase of a product. Today it’s important that distributors are recognised as long-term partners rather than just separate entities, they can provide a wealth of expertise and market insight through their partnerships, extensive product and OEM knowledge.
Cost reduction
Distributors are able to buy components in bulk and secure the best possible pricing from manufacturers, and in most cases, will receive supported pricing on the product range as an official distributor. Distributors have good relationships with product and inventory
Components in Electronics
teams to ensure they have access to the full range, including upcoming product launches, lead times and availability. Distributors tend to hold a large range of everyday components in stock so that they can pull orders from their shelves quickly enabling the customer to have a next day delivery option.
Distributors like GD Rectifiers can work with customers to offer alternative components that are electronically and mechanically interchangeable to reduce costs and lead times.
Risk management
Distributors work as an extension to your business, with their knowledge and expertise they are able to secure the best price, lead-time and component at your disposal. When partnering with an authorised distributor you can rest assured that the components you purchase are directly from the OEM, eliminating all risks of buying counterfeit goods. Partnering with a reliable and trusted distributor will enable you to determine anticipated risks and safeguard your business from any problems that could arise during the procurement process, including product quality, supplier reliability, customer satisfaction, company reputation and customer service.
Product and supplier management Distributors such as GD Rectifiers offer seamless product and dedicated account management services, ensuring that
Global sourcing
Distributors stock and have access to a wide range of products from the world’s largest manufacturers. OEM components are manufactured all over the world, ensuring a widespread and cost-effective production with the fastest possible time to market. Distributors are often referred to as a ‘one stop shop’ because ordering through one is easy, time- and cost efficient, and speeds up the products’ time-to-market. GD Rectifiers stocks over 200 products, which are readily available in its warehouse on a next day delivery, and has access to the world’s leading products with the best possible lead times.
Quality management
Distributors are continuously speaking to the factories and are usually aware of any real-time quality assurance or delivery issues, enabling them to notify customers immediately. Distributors work closely with manufacturers to offer direct access to the OEM sales and technical teams alongside the distributor sales teams in the event of any product issues or testing requirements that require discussion. Distributors will work with customers on potential non-conformance, audits, supplier risk scorecards and delivery reports to support their procurement strategies and processes, ensuring industry compliance at all times.
www.gdrectifiers.co.uk.
www.cieonline.co.uk
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