Distribution: Some Policies No Longer Work

One charter of a trade association is to examine and if possible rectify industry policies and practices that don’t make sense for its members. But there are several issues in the electronics supply chain over which members of the same trade association may never see eye-to-eye. Distributors and suppliers – both members of Electronics Components…

Digi-Key Ventures Deeper into Supply Chain

One of the most significant recent developments for global distributor Digi-Key Corp.  has been the expansion from a traditional low-volume high-mix (catalog) order model into the small production and prototype business. The two models are very different and traditionally don’t sit side-by-side in broadline distribution organizations. Electronics Purchasing Strategies managing editor Barbara Jorgensen recently spoke with Dave Doherty,…

SMTC Bags SpiderCloud Business

SMTC Corp. said it has signed an agreement to provide contract manufacturing services to communications equipment vendor SpiderCloud Wireless in North America, helping to boost sales at the EMS provider. The sales potential and volume shipment of the transaction was not disclosed and privately-owned SpiderCloud does not disclose its revenue numbers. Aside from the additional…

Benchmark Acquires EMS Division of CTS

Benchmark Electronics Inc. said it has bought the electronics manufacturing services unit of CTS Corp., paying approximately $75 million for the division. The business services the industrial, aerospace & defense, medical and communications market, according to a statement issued by Benchmark and CTS. Like many other medium-size contract manufacturers Benchmark has been deepening its offerings…

Flextronics Trims, Acquire in bid to Win

Flextronics International Ltd.’s strategy for achieving financial stability seem simple enough except that, these days, drastic cost-cutting involving plant closures don’t necessarily go well with aggressive small and medium-size acquisitions. There’s a method to the madness, though, and company executives in recent presentations to analysts and investors have insisted this strategy is helping the contract…

India: Distribution’s Next Hotspot

India isn’t the hottest market for electronics right now but with more than 1.2 billion people, it has the potentials to become one in future, hence the attention being paid to it by many of the world’s biggest electronics equipment manufacturers and other players in the industry supply chain. Component distributors, especially, are avidly exploring…

What if the Prodigal OEMs all Return?

It’s a barely noticeable trickle now but what if all the prodigal Western OEMs who shifted production en masse to low-cost locations in Asia suddenly move even a single-digit percentage of their manufacturing volume back home? Will the electronics supply chain be able to handle the flood and does the industry anymore have the intellectual…