Distribution
Component shortages: What’s the delay?
The demand for electronic components is growing exponentially, CIE speaks to Paul Bentley, managing director of GD Rectifiers, on the reasons for long delays and how to avoid component shortages
3) Explore using alternative mechanically
interchangeable devices in stock from the same manufacturer where possible, 4) Be open to using equivalent parts
from another manufacturer if you cannot accept the lead time and there is no stock elsewhere,
5) Remember to purchase from authorised distributors to ensure product traceability.
Paul says, “For both customers and distributors that are experiencing long lead times, our advice would be to
contact GD Rectifiers. We can help you source the components you need quickly at the best possible price. We work directly with the factories to ensure the fastest delivery time of non- stocked products. We can also offer alternative parts for your requirements from our wide product portfolio, recommending comparison products that will achieve the same superior performance.”
gdrectifiers.co.uk
T
he demand for electronic components is growing rapidly because of the increase in handheld devices with
relatively short product lifecycles and the surge of electronics being used in new technologies. Two key reasons for the increase in demand is the automotive and IoT industries, causing pressure on the market by placing stronger than anticipated demands on manufacturers. With an unusual level of demand such as automotive systems and requirements for display systems, LED lighting, sensors and artificial intelligence features have all contributed to the inflation of components required by the market. And as a result forecasts suggest that in years to come the number of MLCCs could rise to 22,000 in just one car.
In addition to this, the annual
production of electric vehicles is set to reach 2.4million units in 2021 compared to just 409,000 in 2014. This colossal rise is the result of new emissions regulations and incentives from the government which doesn’t appear to be slowing down any time soon. Similarly, 30 years ago IoT devices were
a dream and far from reality, yet today smart devices are adding a further burden to an already constrained market. It is forecasted that IoT devices are set to grow by almost 31 billion worldwide in the coming years which causes growing concerns for manufacturers.
The industry is experiencing long delays because a large number of customers are panic buying and double-ordering components to try and eliminate further production delays. This does, however, in the short term put immense pressure on the supply chain which is why companies should implement a longer term strategy and put in place effective planning and a flexible order system for their projects. This type of strategy will protect customers from unexpected supply chain issues,
38 September 2019
especially the current shortage the industry is experiencing. Forecasters are predicting that the current component shortages will continue in to 2020 so it’s extremely important for businesses to devise a buying strategy from here onwards. This is not the first time the industry has seen long delays for components and it will definitely not be the last, but implementing a buying strategy, including working with your distributor to forward buy and place scheduled orders, will enable your business to better manage inventory demands in the future. Having stock on the shelf is vital for distributors in today’s market. Most companies stock against their forecasts but at GD Rectifiers it’s important for us to have a wide range of components available straight away which is why we also ensure we have access to additional stock. GD Rectifiers is a global manufacturer and distributor of products, services and solutions to commercial and industrial users of power electronic components. We distribute state-of-the-art power semiconductors, circuit and auxiliary devices and design and manufacture our own range of heatsinks and power assemblies and controls. We have been supplying electronic components and customised devices to engineers, purchasing specialists and hobbyists for over 50 years. Delivering unrivalled customer service, ensuring high- quality components are delivered on time and in budget, making us one the UK’s leading independent distributors. Paul Bentley, managing director of GD Rectifiers shares his top 5 tips on how engineers and buyers can best avoid component shortages in the near future: 1) Provide your distributor with a product
forecast to enable scheduled drops, 2) Organise scheduled or call-off orders
to ensure your distributor has stock on the shelves,
Components in Electronics
Avnet Abacus wins best distributor award
Distributor garners award for its performance across the Central Europe region
A
vnet Abacus, one of Europe’s leading interconnect, passive, electro-mechanical and power distributors and a regional business unit of Avnet has received the award for ‘Best Distributor for the Central Region 2018’ from Omron, a global
leader in electromechanical and sensing technology. Omron’s distribution awards are based upon a wide range of criteria including: sales
growth by both value and percentage with respect to the previous year; number of customer visits performed jointly, including both Omron and the respective distributor; number of sales quotes and resulting conversion ratio; increase in market share over the entire distribution network; new design projects approved by Omron; and finally, marketing communications activities carried out by distributor. “Since first engaging with Omron about five years ago, we have enjoyed increasing success across Europe, and most notably in the Central Europe region,” says Alan Jermyn, vice president of marketing at Avnet Abacus. “While Omron is world renowned for its portfolio of relays and switches, we see major opportunities for its growing range of highly innovative sensor products, especially in fast-growing building automation and industrial IoT markets and applications.”
avnet-abacus.eu www.cieonline.co.uk
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