Component Allocation: The Underrated Role of the Broker

Brokers or independent distributors play an essential role in the electronic component supply-chain: They buy overstock; They source hard-to-find components; They source better prices (since their prices are not controlled by the manufacturer). But they have another crucial role during component allocation: they regulate prices. Here’s how.  The regulating role of brokers during allocation — Photo on VisualHunt…

Save 20 Days of Inventory by Rescheduling Back-Orders

First, a disclaimer: My sincere apologies for this (potentially) misleading title. If you are in a low-mix high-volume industry such as computers, communications or consumer electronics, then the odds are that you experience no issues and therefore would gain next-to-nothing, from back-order rescheduling. However, if your business is high-mix low-volume such as industrial, military-aerospace, medical,…

Why Linking Supply Chain Objectives to Performance Will Never Work

Every business person knows that setting objectives is critical to business success. Recently, though, I’ve begun to suspect that most of us are managing objectives in the wrong way.  With a few tweaks, though, most organizations can use objectives to deeply impact overall performance.  Photo credit: CarbonNYC [in SF!] via Visualhunt.com / CC BY Let me begin with a graph. I’m…