Disregard Price Benchmarking at your Own Risk

Not benchmarking your electronic component spend? If so, continuing to disregard this critical diagnostic at your own risk. Quick. Name 1 inherently deflationary commodity. A commodity that, apart from the ebbs and flows due to supply and demand, always gets cheaper. The broad answer is electronics; more specifically – an integrated circuit (IC).  This month marks…

LCD Driver IC/Touch IC Market Faces Price Decline

Although the electronics industry continues to explore alternatives to LCD technology, it is still a major player in electronics products. The technologies that support LCD, such as driver ICs, have a vested interest in the success of the LCD market. There have been some significant developments in the LCD driver IC and the touch IC…

Price Cuts Shake Up LED Hierarchy

Declining prices are always a good news/bad news scenario in the electronics components industry. Buyers win when prices dip, but vendors have a hard time meeting revenue and profit goals. After experiencing a fall to the bottom and a price slump in LED during 2012-2013, quite a few LED enterprises have been forced to go…

distributors

Can the Supply Chain Survive the Free-Service Squeeze?

Outside of corporate management, engineers are the most valued—and best-paid—members of the electronics supply chain. So why do so many customers expect to get engineering services for free from their business partners? The distribution industry for decades has been struggling with this issue. “Giveaways” began with value-added services. Customers that bought components from distributors asked…

SiliconExpert Launches Pricing Tool

SiliconExpert Technologies, the leading provider of electronic component management tools, officially introduces their Price Analytics Tool which normalizes and displays component level pricing data on an intuitive interface, allowing supply chain managers to easily compare, analyze and manage pricing data intelligently. OEMs with multiple distributors and contract manufacturers can now easily compare component level pricing…

Tips For Thriving in a Flat IP&E Market

In some circumstances – political leadership, for example – long-term stability is a good thing. In the interconnect, passive and electromechanical (IP&E) market, a little upward or even downward momentum would be a welcome change for many companies in the electronics supply chain. “From the leadtime perspective, there has been very little change [from 2013],”…

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…

The Lure and Deception of Pricing Secrecy

Pricing secrecy is rampant in the electronics industry, governed by a strict regimen where suppliers are forbidden to disclose how much particular customers paid for their products and OEM and EMS provider procurement and purchasing experts consider pricing a “competitive weapon.” We are all living a lie. Let’s take one recent example from a large…