Cost Reduction is a Top Priority in the Supply Chain

There is no surprise that cost reductions top the high-tech supply chain executives ranking of the three biggest issues or projects for 2014, according to the Annual North American Hi-Tech & Electronics Report from eyefortransport. The survey of supply chain executives also reveals that the most effective strategies for reducing costs include improving internal efficiencies,…

Building Vendor Relationships in Electronics Distribution

A recent survey conducted by Electronic Purchasing Strategies revealed that electronic purchasing professionals spend an average of nearly 7 hours per week interacting or negotiating with vendors.  This was the most hours of any of one particular task. The survey also revealed contracting and maintaining vendor relationships as their primary job role.   Despite a society…

Component Suppliers Lag in Automotive Supply Chain

Electrical/electronic component suppliers ranked last among the six automotive segments – exterior, powertrain, interior, electrical, body and chassis – reviewed in PwC’s North American Automotive Supplier Supply Chain study. While electrical/electronic component suppliers ranked first in gross profit margins, which suggests low raw material component costs, low-cost labor and lower-than-average total landed costs, said PwC,…

How Will IoT Impact Purchasing?

The Internet of Things (IoT) – which represents a great opportunity for component makers and OEMs in the electronics market – has implications for the millions of users of IoT applications. Purchasing, I’d imagine, is one of those applications. When I look at purchasing issues, I break them into two separate groups: my issues as…

Positive Disruption from IoT Growth Demands Quality Vigilance

The Internet of Things (IoT) news is all around us and ties directly to very promising forecasts of industry-wide growth from devices to components. However, counterfeiters look to times of change as an opportunity to introduce fraudulent parts into supply chains because change also brings companies into unchartered waters. For those who are not aligned…

The Role of Social Media in Supply Chain Risk Management

A study conducted by Accenture found that supply chain risk management is seen by companies as a priority.  Seventy-six percent of companies who participated in the survey described supply chain risk management as important or very important, and 25 percent of respondents reported that they are planning to make increased investments of at least 20…

Surging China Alters Components Distribution Hierarchy

The East vs. West struggle for economic dominance and relevance is turning the global electronics components distribution market on its head. A mere nine years after it was incorporated, WPG Holdings Ltd. is threatening to upstage Arrow Electronics Inc. as the No. 2 global electronics components distributor in what is shaping up as the most…

More Wafer Fabs Set to Close in 2014

Semiconductor manufacturers closed 72 wafer fabs from 2009 to 2013 and another nine fabs are scheduled to close in 2014, according to IC Insights. The hardest hit were 150-mm wafer fabs as suppliers looked to gain greater efficiencies. The Global Wafer Capacity 2014 report finds the semiconductor industry has closed or repurposed older capacity ≤200-mm wafer…

Electronics Supply Chain Redefining China’s Role

Compared to other industries, the technology industry has a truly cross-regional reach. Supply chains for products like semi-conductors, consumer electronics, mobile devices, PCs, tablets and printers are global in nature, as parts are being supplied from across the world. However, there is a shift in production and consumption as the attractiveness of emerging markets continues…

Electronics Purchasing and Voting With Your Pocketbook

Walmart critics say the mega-retailer doesn’t pay its employees enough. Among the arguments in favor of Walmart boosting its employees’ wages is “it’s the right thing to do.” Corporate social responsibility (CSR) has become a very popular branding tool for many businesses. But how about from the business standpoint? Walmart is one of the darlings…