Commoditization & Consolidation: Scourge of IP&E Market

There are numerous challenges ahead for interconnects, passives and electromechanical (IPE) components manufacturers, component distributors and equipment makers. Commoditization – the rapid erosion of pricing and profit margins – isn’t a problem for just suppliers. It poses a challenge for distributors and, in the longer run, OEMs too; what they gain in lower pricing for…

Resolving Emergency Components Shortages

Every purchasing person knows that from time to time some suppliers are not going to be able to help with either emergency shortages or alternate source component research and subsequent supply. When this is the case, things around the factory start to heat up and depending upon the urgency of the requirement, the company firefighters…

5 Areas Engineers Impact Procurement

In putting together the slides for a technical review, I realized that two thirds of the staff at Lytica have technical degrees; mostly electrical engineering but also computer science, mathematics and related fields. While not a total surprise, it is unusual to have this technical depth in a supply chain company and it is also…

In Distribution, How Much Support is Enough?

Although the electronics supply chain is far more complex than a typical consumer transaction, buyers of all types share some common experiences. Consumers order things online as do many electronics purchasers. So I’d like to use this blog to post a question: How much attention do you want from an online store/distributor? Here’s why I…

IP&E War Heats Up Electronics Supply Chain, Part 1

Large, billion dollar transactions are unusual in the interconnects, passives and electromechanical (IP&E) components market but recent developments point to a stirring in the sector that will have major impacts on OEMs, suppliers and parts distributors serving the sector. True, IP&E components are anything but glamorous and the main vendors — Amphenol, AVX, Kemet, Molex,…

Avnet’s Fay: Hynix Fire Exposes Supply Chain Vulnerability

For years now I have been advocating the importance of having a comprehensive and proactive risk management strategy to protect the continuity of the supply chain when a disruption occurs. And though I believe that there is indeed a greater awareness of the importance of risk management, the apparent panic ignited by the recent Hynix…

TTI’s Knight: Mouser, Sager Complement Global Strategy

Unlike its bigger competitors TTI Inc. wasn’t initially a leading consolidator in the North American electronics components distribution market but the company has since been playing catch up with several strategic deals, including the  purchase of Mouser in 2000 and more recently, Sager Electronics. More such deals may be on the way although these are…

Severe DRAM Allocation? Reality Suggests Differently

Spot prices for DRAMs have shot up 19 percent since a recent fire at a SK Hynix plant in China halted production at the industry’s second-largest memory supplier’s facility but fears of “allocation” – one of the most dreaded words in the purchasing community – will eventually prove unfounded. The SK Hynix plant shutdown sparked…

Essential Design Tips for Purchasing Pros

One of the most effective means of communication is by means of an illustration. If that illustration contains dimensional data and design characteristics that predict what a future product may look like, then the illustration can be referred to as a concept drawing. A concept drawing does not contain critical parametric or component values because…

Web Down! Surviving the Inconceivable Supply Chain Disaster

Site down isn’t just a problem for the likes of the New York Times and other media outlets that have ticked off a despot somewhere in the world. An onslaught of “denial-of-service” attacks in segments of the economy that have heavily embraced e-commerce and other online process management functions could spell disaster and trigger massive…