Anglia sounds alarm bell on CEM/broker ‘cartel’
The issue centres on how blurred lines between manufacturing, distribution and open-market sourcing affect company governance. Anglia said it believes in forging strong, three-way supply chain partnerships between component manufacturer, the customer and the distributor.
Responding to recent mergers and acquisitions activity, Anglia Components has warned of a looming potential imbalance in the supply chain, where traditional lines may become blurred, leading to a lack of transparency and compromised independence.
“Last week, the news sneaked out that one of the leading electronic component brokers had been bought by a major CEM, confirming rumours that had been floating about for months,” said Anglia’s CEO Steve Rawlins. “This is concerning because it places too much buying power in the control of one organisation, leaving the supply chain at risk. If this were to become a trend, with other Tier 1 CEMs buying brokerage companies, it could easily result in artificial shortages and price hikes.”
Anglia said it is speaking from experience: 25 years ago, the company set up its own CEM operation, which was in Rawlins words ‘a disaster’ as customers were confused and worried by the potential conflict. The experiment was swiftly terminated.
The issue centres on how increasingly blurred lines between manufacturing, distribution and open-market sourcing affect company governance. Anglia said it believes in forging strong, three-way supply chain partnerships between component manufacturer, the customer and the distributor.
“We operate with full transparency in the best interests of our customers,” said Rawlins.
Anglia Components is a privately-owned UK and European distributor of semiconductors, optoelectronics, interconnect, passive and electromechanical components with franchise agreements with leading component manufacturers.
