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…

Market Price Normalization Improves Competitiveness

When we assess a new client’s spending against market pricing, we usually see a distribution of prices made up of overlapping distributions. A typical example looks like the Competitiveness Profile illustration below. The profile suggests three distributions. The first is a fairly tight distribution of good pricing positioned where half of the distribution is seen…

Purchasing: Do you Really Understand Pricing?

Since my company, Lytica Inc., introduced analytics based price prediction for electronic components, many major EMS and OEM companies have saved millions of dollars by applying this technology to their materials spending. As with the disruptive technologies described by Clayton Christenson in The Innovator’s Dilemma, those stuck like deer in the headlights clinging to a…

Lytica Unveils New Components Pricing Benchmark Report

Growing Ottawa based Supply Chain Analytics & Services company – Lytica Inc., announced Monday, the release of their new free BENCHMARK REPORT designed for companies that use electronic components within their products. “By uploading their costed BOM (Bill of Material) and AVL (approved vendor list) into Lytica’s secure website, a customer will receive a free…

Top 7 ‘Crimes’ Committed Often by Purchasing

I was speaking with my Purchasing Manager last week; Patrick is a very capable and effective purchasing professional who has become addicted to Lytica’s fast track cost reduction methods. We discussed surprising things that we have seen in procurement which we label as “crimes” because they rob shareholders of value. In no particular order, I’d…

6 Obstacles to Achieving Cost-Reduction Goals

Lytica Inc. tracks current prices paid – not distributor website prices – on about one million electronic components and uses this information to assess our clients’ spending competitiveness and estimate appropriate pricing for their worst price components. In many cases, we assist customers in implementing better pricing in their supply chain. From this vantage point…

Becoming & Staying a Leader: the Agilent Way

Although the company announced the split in September, the Board and senior management team at Agilent Technologies impress me for giving their shareholders and employees such a great Christmas gift. As announced, this great company will split into two separate units; one focused on life sciences and the other on test and measurement.  I like…