The electronics industry is experiencing a level of component shortages that it hasn’t seen in decades. For some in the supply chain it’s a period of prosperity—semiconductor bookings are up 30 percent year-over-year, market-watchers say. At the same time, industry trade group Electronic Component Industry Association (ECIA) warns “…due to component shortages, long lead times and allocation conditions are expected to continue.”
Component scarcity is impacting more than just the electronics industry. U.S. manufacturers across the board, according to the Institute for Supply Management, are in a period of uncertainty due to shortages and an impending global trade war. This, in turn, is prompting many manufacturers to hold off on planned capital expenditures until the supply chain becomes more stable. Manufacturers are trying to control costs while, at the same time, reduce expenses.
There are all kinds of tools available that provide visibility into the global supply chain. In the electronics industry, component distributors are in a prime position to leverage data to assist their global customers. SiliconExpert, a division of Arrow Electronics, complies data from thousands of component manufacturers, and the entire Arrow organization reaches millions of global customers. SiliconExpert has developed a cost management tool that “normalizes” all the disparate data points that come from this global network.
The electronics supply chain – despite many improvements—still has problems sorting and analyzing data. Companies operate on multiple IT systems due to M&A; there’s limited visibility into component pricing; business units within enterprises may use different spreadsheets and even have variances on pricing. A lot of data is still collected manually which is time-consuming, and duplicate part numbers are hard to identify.
Silicon Expert’s cost management tool:
- Combines data from OEM business units, contract manufacturers and SiliconExpert in a single web platform;
- Measures commodity management cost savings and trigger additional cost savings;
- Allows permission-based access to all contributing parties; each outside party only sees their relevant data
- Uploads BOMs or part lists
It also provides the ability to:
- Upload parts without impacting negotiation pricing or purchasing data
- Generate cost savings reports at multiple levels
- Evaluate part risk for many parts at one-time
- Edit and enter data real-time from within web portal without re-uploading
- Search parts, verify where used, where purchased and other information
SiliconExpert held a Webinar on its Cost Manager, focusing on Strategic Commodity Management, on Thursday, July 19, at 10 a.m. PST. The 30-minute, hands-on session is now available on demand, please register here: