Finally the last procurement business to go through digitalisation is the world of electronic component sourcing. Is making its steps, the power of technology is taking form and generating advantages for those who were early to jump on the digitalization train.
Here is a story that popped up this week, some platforms provide notifications for product termination notification, last week Taiyo yuden, a large passive component and semiconductors manufacturer informed of a termination of some of its magnetic electronic component (Inductors, chokes, ferrite beads, filters etc.) more known
With this information provided by platforms such as silicon experts, sourcingBot.com, z2data. Few manufacturers are able to stream all BOMs they found that contain this mpn (manufacturer part number) and locate all potential buyers and quickly suggest a replacement from their existing inventory.
We learned from industry sources, that some manufacturers in this industry who were already highly digitized and consume this level of granular data, are able to automatically submit RFQs to their client base according to existing BOMs.
Streamlined procurement doesn’t only save on costs and transfer business online, it just generates new methods to the purchase orders.
In one scenario, as this EOL (End of lie notification) included thousands of parts, this generated business opportunities within a day, with potential leads mounting to several millions of dollars in a day.
This is a classic success story that could impact digital transformation, As this level of response becomes normal, Distributors and part manufacturers cannot wait to be second.
As difficulties in allocation of electronics become the new normal, respected manufacturers prefer to mount and stock on inventory to avoid lead times and time to market constraints.
Finally, with the help of several AI based startups, significant manpower and venture capital. Sourcing world is able to make the shift. The main issue was data quality and incomparable data sources. At a certain point it seemed to the untrained eyes that its intentional by the large part manufacturers who wanted to maintain lead and market share. But with more and more holes appearing and more and more data providers appear specifically at this line of business, it is clear that there is no way back.
What has happened to the automotive industry open up wounds and makes manufacturers stock on inventories
When The automotive industry is experiencing extensive manufacturing slowdowns, it is clear that the level of anxiety of sourcing managers is increasing, sending many electronics and embedded computers manufacturers to stock up and hold on to inventories that were not seen in previous years.
In recent years supply chains have improved dramatically but even those advantages will not be sufficient with trade war looming at the electronics industry as many other industries.