 Now that the
"shift happens" puns are all done, what's the take-away from the annual
Electronics Components Industry Association's (ECIA) Executive Conference? There
were several. The message that the industry has to continue to look forward was
loud and clear. But equally compelling was the suggestion that distributors and
suppliers still have a few past issues to work through: namely, design-win
compensation and ship-from-stock-and-debit. These two practices, which were put
in place decades ago, no longer work for everybody in today's supply chain. EPS
takes a deeper look at these issues in Distribution: Some Policies No
Longer Work .
Another
unsettling issue is the continually eroding profit margins suppliers and
distributors are wrestling with. The electronics industry is in the midst of a
long period of adequate or over-supply and price increases aren't viable.
Additionally in China, the industry' fastest-growing market, prices and profit
margins are lower than in the rest of the world. Sometimes, customer engagements
aren't profitable. Arrow Electronics recently disengaged with a customer for
profit-related reasons, and you can read more in Arrow Shows When to Drop a
Customer.
One of the way
distributors are reducing costs to maintain margins is by spreading more of
their services over the Internet. The free tools that the channel offers
customers usually focus on design or purchasing. Arrow's latest offering to the
market covers both, as we explain in Arrow Tool Links Purchasing and
Engineering.
The electronics industry has been struggling with
counterfeits since its inception and distribution is particularly vulnerable to
bogus parts that may slip in to the channel though product returns. A solution
that has been supported by a U.S. Government procurement arm, the Defense
Logistics Agency, has polarized the industry. The solution involves marking
components with DNA derived from plants. Marking the components enables
customers to confirm whether the parts came from an OEM factory; an authorized
distributor or another source. Aspects of the practice have been called into
question, which EPS examines in DNA Marking Roils
Anti-Counterfeit Camp.
Also this month,
Distribution Dispatch highlights EPS November Hot Products.
We'd like to hear from you about the stories
we've run and topics that you'd be interested in. One of our charters at EPS is
to help buyers do their job better. Let me know how I can help at barbara.jorgensen@epsnewsonline.com.
Barbara Jorgensen
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Forget Re-Shoring, China is still
it
It's easy to find evidence to
convince anyone China will in future play a diminished role in the electronics
manufacturing market. Link
Capturing B2B Potentials of
RFID
With RFID technology coming on line for many different business
sectors, I could not help but notice the impact for B2B applications with
respect to the management of critical data to ensure they can survive the
untimely demise of a product in the field. Link
Flextronics Places Huge Bet
on Google
Google Inc. is fast becoming the hottest must-have
partner for many supply chain service providers in the electronics manufacturing
industry. With the Web search engine provider expanding its roster of
electronics hardware, sales and profit opportunities running into billions of
dollars have opened up at the company for semiconductor makers and other
component suppliers, distributors, contract manufacturers, logistics providers
and independent design firms. Link
Consumer & Mobility Alter the
Electronics Landscape, Part 1
Electronics Here, There,
Everywhere: Implications for Industry Design Chain & Supply Chain Landscape.
That was the initial headline for this article but the lengthy wording worked
against this choice and a shorter title was substituted. Link |
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Distributors Weigh Tough Talk with
Customers
Now that all the "shift happens" puns are done, what is the take-away from
the ECIA Executive Conference that was held in Chicago a few weeks ago? Link |
Transitional
EOL Cuts Last-Time-Buy Pains
Semiconductor
End-of-Life (EOL) announcements can cause procurement stress and lines-down
situations. When an EOL notification is issued, the original equipment
manufacturer (OEM) may find themselves in the position of having to make a
last-time-buy (LTB) purchase that will cover the duration of its manufacturing
and/or in-field maintenance. Link |
Digi-Key in
China? Yes, Soon, Too
Digi-Key Corp. is expanding operations globally and
plans in the near future to establish its first office in China in furtherance
of an internationalization program that will see the electronics components
distributor putting "boots on the ground" in key European, Middle East and Asian
locations, according to company executives.
Link |
Schuck
to Head Arrow Global Components Group
Arrow Electronics Inc. said Eric
Schuck will take over as president of its global components business effective
January 1, 2014. Schuck will replace Peter Kong who is scheduled to retire from
the company on March 31, next year, according to a statement released by the
company. Link |
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