Distribution Tackles Market Upheaval with Executive Overhaul

The electronics distribution industry is experiencing significant changes in the ranks of its senior executives as the sector fights to spur growth and reverse years of lackluster performance. That’s what happens when companies don’t perform as well as expected but recent changes at the apex of the leading distribution companies indicate the sector may be…

Procurement Execs Tighten Their Belts

U.S. manufacturing has been on a bumpy ride for the last five months: The Institute for Supply Management (ISM)  has reported industry contraction since October 2015. The pace of contraction slowed a bit in February and is inching closer to a level of 50.0, the demarcation line between growth and contraction on the ISM index.…

IMP: Turning Inventory Liability into Higher Value Asset

Excess inventory is a blight on the electronics industry, a seemingly unending and expensive drain on resources at manufacturers and component suppliers. Nearly two decades after one of the most savage downturns in the history of the industry, though, a supply chain management services provider says it has figured out a better way for reducing…

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…

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…

OEMs Retain Firm Grip on Purchasing Power

Purchasing conditions continue to whipsaw in the electronics industry but OEMs and contractors remain on top of the food chain, benefitting from weak pricing and easy availability of supplies amidst heavy discounting by harried vendors. However, OEMs, too, are stressed with uncertain demand, the stronger dollar, a potential hike in U.S. interest rates and conflicting…

America II: Primed and Reloaded for the Franchised World

Brian Ellison is very passionate about his company. He wants the customers, suppliers and employees of America II Electronics to see and understand the dramatic changes the components distributor has engineered in only a few years to reposition itself in the electronics supply chain. In the last weeks Ellison has crisscrossed North America to educate…

Conflict Minerals Rule: An Exercise in Futility?

Electronic and paper documentations showing efforts by OEMs and component vendors to comply with the Conflict Minerals Rule are piling up at high-tech companies worldwide even as a courtroom battle rages over the legality of the legislation, according to interview sources. Although a Federal Court has ruled that a portion of the law violates manufacturers’…

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…