Contractors Ogling Distribution Business Again

A turf war between electronics components distributors and contract manufacturers shouldn’t surprise anyone. The two groups operate razor-thin margin businesses and while they offer critical services neither is truly at the top of the electronics industry food chain. To further complicate matters, OEMs can (and sometimes do) reap major benefits from pitching distributors against electronics…

Intel Invades OEM Design World

Intel Corp. isn’t staying on the sidelines as OEMs review their design operations to improve efficiencies, slash costs and accelerate product time-to-market. The semiconductor vendor is directly inserting itself into the design environment with the hopes of cementing existing relationships and forging new ones as major technology developments and shifting consumer and enterprise demands drive…

distributors

Amazon.com Gets High Marks — But Not For Components

Amazon.com’s announcement that it has established a b2b site which, among other supplies, will be selling components has been met with skepticism from a number of decision makers in the electronics supply chain. The main concerns cited by participants in a LinkedIn discussion moderated by ERAI are traceability of parts and the possibility of defects.…

Even Electronics Design is now a Commodity

Electronics design – the last bastion of fat margins for electronics manufacturers – is the latest victim of the waves of commoditization that have eroded margins in the high-tech market for decades. Efforts to fight commoditization in recent years have focused industry resources on differentiation primarily in the design of proprietary products but even this…

Is Your Supply Chain Truly Agile? Don’t Guess

Stop guessing. Figuring out whether your company’s manufacturing supply chain is agile isn’t that difficult. That is, if you are willing to face the brutal truth that it probably isn’t as flexible as you think – just like the supply chains in operations at many other enterprises. That’s the assessment of a group of researchers…

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…

PC Market Slump is Good and Bad News for Purchasing

A purchasing professional serving a PC manufacturer today has very little to complain about. Component supplies are plentiful and prices keep trending in one direction: downward. The latest financial results from Intel Corp. and Advanced Micro Devices Inc., the biggest vendors of PC microprocessors, were dismal – for the chipmakers. At Intel, sales in the…

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…