Our ability to source electronic components globally, allows us to find what you need when you need it, keeping your supply chain moving and realising product sales.
How We Can Support Your Shortages?
We have heavily invested in a worldwide supply chain to support our clients with new sources and availability without compromising our quality deliverables.
We have a multi-layered procurement strategy with 8 regional managers and 60+ sourcing specialists globally.
This is all backed up by our propitiatory software system giving our purchasing and sales teams the opportunity to offer connected supply chain and inventory management solutions tailored for our clients.
As well as this, we also continuously review all vendors to ensure compliance. We have reciprocal trade agreements with some of the world’s largest OEMS & CEMs.
global purchasing offices
dedicated purchasing professionals
direct manufacturer relationships
Qualified Market Sources
1000 Accounts with franchised distributors & agents
Current Market Conditions
We have seen an increase in lead times and restriction of supply since the middle of 2020 with the pandemic only compounding the issue. Allocation hit in earnest in Q1 2021, beginning in automotive applications, but this has filtered through to all technology sectors.
Other factors such as raw material shortages, trade disputes and technology drivers from a move to home working have had an impact. Pent up demand and a bounce back as certain regions eased their lockdown measures lead us to believe that supply issues lead us to beleive that the current supply chain restraints will remain throughout 2022 and as a minimum into Q1 end 2023.
Just as it has with most industries around the world, Covid-19 has played a major part in the disruption that the electronics industry is enduring. The pandemic has caused falls and surges in demand that have impacted production levels and made the market unstable.
The fast growth of new technologies
The pandemic isn’t the only factor that is causing the semiconductor shortage. The fast growth of new technologies means that demand is outstripping supply for universal components such as semiconductors and MLCCs.
US-China Trade War
Further compounding these issues is the ongoing trade war between the US and China. When Huawei was blacklisted in the US, several US-based microchip producers were forced to cease trading with the Chinese tech giants, resulting in financial difficulties for both parties.
How do I prepare my supply chain for shortage issues?
Despite these problems, OEMs and CEMs still need semiconductors to create their products. Semiconductor dependent microchips are used in almost every modern electronic device, including cars, computers, smartphones, games consoles, and smart assistants.
The best way to navigate the semiconductor shortage is to work with an independent, data driven, hybrid distributor with real experience in managing component shortages. Being independent, rebound electronics is uninhibited by the restrictions of traditional franchise agreements, allowing us to add real value by offering.
An unrestricted approach to component sourcing globally giving us the best chance to find the product needed keeping supply chains moving.
Is the fast growth of new technologies causing the semiconductor shortage?
The fast growth of new technologies means that demand is outstripping supply for universal components such as semiconductors and MLCCs.
The burgeoning smartphone and IoT markets are putting additional strain on already stretched manufacturers of microchips, but there is still demand for older technologies that also use microchips, such as the automotive industry.
As microchip producers choose to focus their limited resources on the technologies that have better profit margins, other industries are left wanting.
Increased production of microchips requires an increased supply of semiconductors, and manufacturers are struggling to keep up.
Will investing in good technology help shortage difficulties?
You will need to ensure you have the right digital platform in place that connects all parties and is easily accessible if you are to achieve complete visibility in your supply chain.
This will likely mean investment in new technology, which you will need to choose based on the pain points and visibility goals you have defined, as well as the arrangements you have made with internal teams and external partners.
Automation technology such as track and trace systems, smart sensors and RFID technology can help to boost efficiency and easily communicate data to all parties.