The electronics supply chain is a complex network of electronic part suppliers, manufacturers, and buyers all trying to stay ahead of the latest trends. The supply chain has been strained by increasing demand and aging equipment, but there are steps you can take now to ensure you've maximized your sourcing power to stay in control when you need to find that part.

Electronics supplier relationships have dramatically changed

The electric parts industry has changed drastically in recent years. The rise of internet-of-things (IoT) products, increased use of analytics and cloud computing, and more automation are just a few examples. As a result, suppliers need to be much more flexible than ever before if they want to remain competitive. This means that you can’t just Google “electric part stores near me”, instead it means you need to level up your strategies for supply chain electronics.

Supply chain management is an important aspect of managing any business—especially those in the electrical parts field—but it's even more critical now than it used to be. When you have multiple suppliers providing you with different parts for an end product it is essential that your supply chain works well so that your end product doesn't experience delays or failures.

Establish preferred supplier relationships

The first step in establishing preferred supplier relationships is to have a thorough understanding of what it takes to make that happen. A good relationship is about more than just finding the right products for your needs; it's also about building trust and a long-term commitment.

A good supplier should be able to meet your needs, both now and in the future, so that you're not constantly looking for new ways to find parts. You want them to be reliable when it comes down to the wire—meaning they can deliver on time or early if necessary—and provide any sort of additional support needed.

Diversify suppliers

Diversifying suppliers is an important part of risk mitigation when building your find part strategy. The more sources you have, the less likely you are to be hit by a sudden spike in price or supply disruption. It also helps if a supplier fails to meet your expectations if they're not your only source. There are other benefits too: by diversifying your suppliers, you can get better prices, better products and better delivery times. 

Don’t get stuck in a last-minute situation where you search for part number in a pinch but, if you do find yourself there, Amplio is a great resource to get in touch with manufacturers. 

Build international supply chain networks

As a sourcing manager, you should have intimate knowledge of the global supply chain and how it works. It's important to understand the nuances that exist in different regions, such as which countries produce more than others or where labor is cheaper. Building international supply chain networks means having access to this information when making decisions about where to source from.

You can build these connections through trade shows, industry conferences, and networking events like LinkedIn groups created specifically for sourcing managers (you'll find an example below). These connections will help bring new suppliers into your network and allow you to share insights with other sourcing managers who may be able to help you improve your sourcing processes over time.

Be comprehensive in the supplier vetting process

To ensure the best possible results, you'll want to be comprehensive in your supplier vetting process. Here are some tips for making sure that happens:

• Ask great questions. Asking questions is the first step toward uncovering if a supplier will be able to meet your needs, so don’t be afraid to ask! The more specific and detailed your questions are, the better prepared suppliers will be when they respond with answers that help illuminate their capabilities and potential fit for working with you.
• Interview references carefully. Each time you interview a potential partner or supplier, it’s important that you learn as much as possible about them by speaking with their previous clients—usually referred to as “reference calls." Reference calls should include asking about how long they have worked together (and how many projects), what product categories they service (and which ones they specialize in), whether or not there were any issues while they were working together (and if so what kind), what makes this particular partnership work well/poorly compared to others.

Expect shortages

It's not uncommon for the demand for a particular electronic component to increase sharply and then drop off precipitously, especially if it's been in high demand for an extended period of time. As soon as you know this is happening, you'll want to start looking for alternate suppliers and making sure that you have enough on hand before the shortage hits full force. But don’t start looking for electric part store near me! Instead, you can do this with Amplio's component marketplace seamlessly to identify alternative parts supply options, including those in a secondary marketplace used to offload excess inventory– enabling companies to double and triple source their most important components.

Conclusion

If you’re a manufacturer who relies on electronic components, it’s time to make sourcing power a priority. With supply chain management becoming increasingly complex and global, it’s important to have the right tools in place to find a part and to manage your electronic component inventory for optimal efficiency.