Bradley’s Law: Pricing Competitiveness Mirror Supply Chain Influence

A company should expect to pay for a specific electronic device a price commensurate with their Competitiveness within that particular commodity. This Competitiveness is the measure of how the supply chain sees the company – Ken Bradley, Founder & CTO, Lytica Inc. When Ken Bradley founded Lytica in 2005 as a consultancy practice, his primary…

Midsized Manufacturers Expect to Outpace Market

Financial executives of small and mid-sized U.S. manufacturing businesses are optimistic about their growth prospects for 2016, according to research from the buying consortium PrimeAdvantage. At the same time, CFO confidence in the U.S. economy has fallen from last year with slightly more than half of executives – 54 percent — expressing optimism. This is…

U.S. Manufacturing: Mixed Bag in October

The trifecta of a strong dollar, low oil prices and concerns about China continued to dog the U.S. manufacturing market in October. The domestic industry’s leading index, the Institute for Supply Management’s PMI, moved uncomfortably close to 50 — the dividing line between growth and contraction. The PMI in October measured 50.1 percent, down from…

DFARS 2015: Zeitgeist or Bell Toll?

Proposed amendments to the 2012 Defense Federal Acquisition Regulation Supplement (DFARS) could have far-reaching implications for the electronics supply chain. On the face of it, the DFARS amendments seem to favor sourcing from component vendors and authorized/franchised distributors to the detriment of the open market and/or small business contractors. The amendments appear to tighten definitions,…

Battelle Builds a ‘Barrier’ Against Counterfeit Chips

Tom Sharpe clearly recalls the first batch of “clone” semiconductors that turned up under the microscopes at his company’s Sandy Hook, Conn., test facility three years ago. SMT Corp., where he is vice president, specializes in detecting counterfeit chips, and most of those it had detected before then had been poor-quality, previously used chips that…

Buyers’ Scarcest Commodity? Time

Procurement specialists have to focus on a lot of issues strategic to their organizations. But what is the problem that most bedevils buyers themselves? Time management. PrimeAdvantage, a buying consortium of small and midsize manufacturers, found time was the scarcest commodity among respondents to its 2015 survey. Because of  time limitations, 63 percent of respondents said…

distributors

Distributors Eye Competition in a Changing Landscape

Capturing market share away from one’s known competitors is a time-honored growth strategy for most businesses, particularly when the market is flat. But if a company is too focused on defending its turf, executives say,  it runs the risk of not seeing new competitors coming. Verical.com’s Chief Digital Officer and President Matt Anderson recently told Forbes magazine “… if…

A Peek Inside a Buyer’s Toolkit

Buyers have a host of tools at their disposal to help them do their jobs better and faster. These electronics components inventory search and/or data aggregator websites have one thing in common – delivering parts data that range from supply chain information including lead times, pricing, lifecycle/obsolescence information, and environmental compliance data;  to technical specifications…

Verical Sets Sights on Frictionless E-Commerce

When the Internet first enabled b2b e-commerce, companies that wanted to buy and sell electronics components tried a lot of different models. Marketplaces similar to Amazon.com appeared that displayed parts for sale (called OPI—other peoples’ inventory) no matter where the parts were located. Auction sites posted inventory (the eBay model) and allowed buyers to bid.…

Purchasers: Guardians of the Production Galaxy

The world of components buying is fraught with risks. Even the newest electronics components buyer at a contract manufacturer or OEM knows the terrain is riddled with dangerous obstacles ranging from non-optimal pricing conditions to delivery bottlenecks and the more intractable challenge of dodging counterfeit parts to ensure the supply chain doesn’t become corrupt. Those…