What to Look for in an Electronic Component Supplier
An electronic component supplier has a broad range of products in stock. They can also provide technical support and one-stop supply chain services.
Strategic purchasing requires careful planning to optimize for short- and long-term needs. This includes de-risking the selection process by understanding component lifecycles and only sourcing components from reputable manufacturers.
Direct Supply
Whether you’re an in-house EMS or a contract electronics manufacturer, a well-planned supply chain is essential to your success. You need a supplier that has the parts you need at the right time and that’s dependable. Depending on the situation, you may choose to work directly with a distributor or bring in a broker. Both have their pros and cons.
Using a component distributor can help you avoid the cost of carrying inventory or the headaches of sourcing components in an uncertain environment. Component distributors purchase large quantities of components and have warehouses to store them for their customers. They also often provide just-in-time delivery so you can get the parts you need when you need them. This can save you money, especially for small-quantity orders.
A good electronic component distributor can also provide the technical information you need to make an informed decision about the best parts for your needs. They can give you a complete list of alternatives that meet your requirements and specifications, along with detailed tracking information, high-resolution photos, detailed descriptions and specifications, and more.
With the COVID-19 pandemic still fresh in everyone’s minds, many manufacturers are looking to their supplier partners for electronic component supplier longer-term commitments to ensure a reliable supply of components that enable them to deliver quality products on time. With faster product development and shorter design cycles, this means that OEMs are looking for strategic supplier partners who understand how to support their short-term procurement requirements with their long-term supply chain goals.
Catalog Suppliers
The right supplier catalog will help you evaluate alternatives and select components based on technical specifications. A reputable supplier will also provide efficient inventory management practices, which helps minimize delays in purchasing and shipments. In addition, they will proactively communicate any potential shortages or supply chain disruptions to ensure transparency and allow you to make adjustments accordingly.
Specialized distributors offer genuine, fully-tested parts and complete specifications. They typically sell in small quantities and ship promptly. They will often charge significant markup and shipping costs and may not stock all products from a manufacturer or have all part numbers. Chinese suppliers (Alibaba, AliExpress, eBay stores) are often cheaper than specialized distributors but may not be authentic and may not have full specification data.
A well-rounded supplier should have a strong presence on the Internet and be able to support ecommerce transactions with a secure, reliable web portal. The portal should include a unified electronic parts catalog that allows users to identify the component line or series, model, schematics and parts by number and name. It should also display the actual part number, quantity required and lead time from a consolidated source so that engineering teams can choose the correct alternative to avoid costly redesigns.
As chip shortages and geopolitical conflict impact the global supply chain, a good electronic component supplier will be able to quickly identify alternative sources and provide alternates with shorter lead times. They will also be able to leverage their vendor relationships with open market distributors to fill in gaps for hard-to-find or obsolete components.
Brokers
Electronics engineers working in procurement roles or managing their own business need to be aware of the different types of supply chain suppliers, including brokers. This type of supplier buys parts from multiple companies, inventories them and sells them on to customers in smaller quantities. They can also provide a range of value-added services such as decaping a random sample and X-raying the lot to ensure all the parts are identical, which is particularly useful for sourcing out-of-date or hard-to-find components.
Brokers are typically small-scale entities that may have limited stock or inventory at their disposal. They may operate from a garage or basement and aren’t necessarily known to the manufacturer/customer purchasing these parts. Unlike brokers, independent distributors are often established firms and operate from more substantial facilities. They can offer additional resources like a global network, quality control and inspection processes, excess inventory management and market intelligence to their customers before, during and after a transaction.
Brokers who make immediate quotes and ordering available online are usually legitimate, but should be treated with enhanced due diligence. They are more likely to buy components directly from authorized distributors and sell them on quickly, rather than sourcing from the grey market where they can be difficult to validate supplier origin and warranty. It is important to understand that brokers can re-mark components to increase their selling price and should be investigated thoroughly using the date code, reference number and manufacturer name.
Open Market Distributors
When components are in short supply, manufacturers can use a number of sources to find the parts they need. These options include authorized distributors and brokers. Brokers, however, have earned a bad reputation for inflating prices and selling substandard products, leading many to avoid them. An alternative to brokers is open market distributors, or OMDs. These independent electronics distributors work with suppliers and customers around the world to match supply with demand. They maintain extensive inventories, managing stock levels to ensure that both common and specialized components are available. They also provide logistics and warehousing services.
These distributors also prioritize quality and offer 24/7 customer support. They use the latest inspection equipment and meet industry standards to ensure the quality of their products. They can even perform X-ray microprocessor systems testing, decapsulation, solderability testing and other types of analysis on the inside and outside of the component to make sure it is the right product for the job.
In addition to providing a wide range of electronics components, OMDs can also help manufacturers reduce their design and manufacturing costs. They can help them select the best parts for their applications, assist with product development and quality control, and even offer value-added services like kitting and custom packaging. They can also offer a variety of online platforms and tools that simplify the selection, ordering and tracking of electronic components.
