Electronics Production | August 14, 2009
Tip 1: The First Step to Shortage Purchasing: Trust
The key to earning trust is...to be trustworthy. There isn't some kind of marketing gimmick that will pull the wool over our eyes and bedazzle us into trusting someone without good cause. How can someone demonstrate that they're trustworthy? Transparency, simplicity, reliability, speed and a willingness to fix what is wrong.
Transparency is a big buzz word in supply chain these days, but what does it mean, really? When you are purchasing parts from a broker, don’t you hate it when you have to call for pricing or when they have to “check with their overseas warehouse”? What do they have to hide? If a company is truly dedicated to earning your trust, they won’t play games with you. They will push as much useful information at you as they can and will be totally forthright if there is something they don't know. Simplicity. Getting parts from one place to another shouldn’t be too hard. Why do so many brokers and independent distributors make it that way? Everything is a hassle. Haggling over price is torture. Your assembly line is about to go down, but the more desperate you sound, the higher the price will be. When you place an order, it practically takes an act of Congress to get updates. Why is expediting so difficult? What are they hiding? If someone is really looking out for you, wouldn’t they make things easy? Not easier, but truly easy. Do suppliers give you a great price up front? Do they give you tools to see all your options at your pace? Do they push updates to you when your precious order is being processed? Reliability. Like clockwork. Sure as the sun rises. If a supplier performs at a high level each time, every time, you will feel more comfortable calling them in an emergency. Before you let down your guard, ask a simple question: is the company dependable or is it the salesperson? If the answer is the salesperson, don’t be too eager to jump. You may have a good relationship with the person on the phone, but there are countless decisions being made by employees all over that salesperson’s company that will affect your delivery. Is your contact the one looking out for you, or is the whole company aligned with getting you your order. What if your contact is sick or moves to a new firm? Ask around — maybe smaller companies get unreliable treatment from your supplier but the big guys are fine. That's not a good sign — when will you get the bad deal? Speed. Haste makes waste, but when your job is on the line, you need the right parts as fast as possible. Think a second about how speed happens — it isn’t an accident. Haste is a knee-jerk reaction, and the results can be sloppy. Speed is the result of a lot of preparation and work to get things ready for your shortage. How fast is the search? Does it take a conversation to find out what parts are in-stock, what their date codes are and what the price is? Do the items get drop-shipped to you, or do they have to stop off at the middleman? Speed takes a lot of work, and you should keep a mental clock ticking every time you go searching for parts. Humility. A willingness to fix what’s wrong — no one is perfect, and you can learn a lot from someone by how they make up for an error. Do they launch into the blame game, or do they look out for you and try to understand how the process broke down? Are they actually interested in how a mistake was made, and do they actually do anything about it? Apologies from the salesperson are nice, but a willingness to fix the process is that rarest of traits: humility. Finding a trustworthy supplier in the shortage market is a difficult task indeed. Deciding whether a supplier is trustworthy is much simpler: if they are willing to be open and transparent in all their dealings, then they might pass the test. How should a buyer assess the trustworthiness of their supplier? Look for transparency, simplicity, reliability, speed and humility. These traits are notoriously hard to fake, and when found together in one place, they represent something special. Every transaction presents golden opportunities for buyers to observe their supplier’s true character, and the smart buyer will look for those telltale signs. More tips and best practices to come addressing the Seven Challenges for Electronic Component Shortage Buyers. Author: John P. Brown is co-founder and VP of Marketing and Strategy at Verical Image source: AMD
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.
PCB manufacturer SQP invests in new plasma treatment system As part of the continuous upgrade of the PCB manufacturing processes the Slovakian PCB manufacturer SQP International has invested in a new plasma treatment system.
Nordson delivers solid quarter considering COVID-19's impact on global end markets Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
Cicor expands its clean room set up in Bronschhofen Swiss EMS provider Cicor Group is currently expanding its site in Bronschhofen with a 60 square metre ISO Class 6 clean room.
Senate Dems to Trump: Release details of TSMC plant deal Democratic lawmakers are pressuring the Trump administration to respond to serious questions about Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) plans to build a USD 12 billion plant in Arizona, which the company announced last week.
SOS LAB completes series A+, inks MOU with ON Semi LiDAR sensor maker SOS LAB has secured series A+ investment funding of USD 8 million as of April.
Expanded US rules sanctioning Huawei to have little impact on memory industry TrendForce believes that the latest updates to the sanctions will have a relatively low impact, in the short term, on Huawei’s shipment of smartphones, notebook computers, and servers – products for which Huawei is relatively well stocked on components.
PCB Connect expands with new office Due to the PCB suppliers’ successful growth in Denmark, the company has now decided to invest further in the Danish Market.
Panasonic, Tesla discuss beefing up Nevada battery plant Panasonic Corporation this week said strong demand for battery cells from its U.S. partner, Tesla, has led to negotiations on the expansion of their joint plant in Storey County, Nevada.
Flex taps new leadership for automotive business Flex has named Mike Thoeny, president, Automotive Business Group, effective June 1, 2020.
Current pandemic slows down business development in German component distribution German distribution of electronic components (according to FBDi e.V.) continues to decline in the first quarter of 2020. The order situation improves slightly, at a low level. The FBDi calls for future-oriented course-setting and investments in infrastructure.
Progress is being made for BMW’s new plant in Hungary Preparations for the future BMW Group plant in Debrecen, Hungary, have reached important milestone. Following successful preparation of the land by the City, the official handover process has now started.Load more news