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Home » Purchasing Resource Library » No More Scrambling for Parts: Distributors
Help Fulfill Demands
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NO MORE SCRAMBLING FOR PARTS: DISTRIBUTORS HELP FULFILL DEMANDS

March 15, 2022

(Source: William Potter/Shutterstock.com)

Published August 27, 2021

Mouser Electronics technical content team | Estimated reading time: 4 minutes

The electronics industry and supply chain have faced significant challenges in
recent years. Reduced raw resource availability, chip shortages, and
transportation issues continue to wreak havoc on already-fragile supply lines.
Demand continues to rise as well, with data-driven processes, 5G devices and
infrastructure (which require upgraded hardware), industrial automation, and
other applications driving demand higher and higher. The resulting supply-chain
delays and uncertainty have left customers scrambling for parts, nervously
waiting, and needing support in planning inventories and schedules. Electronics
distributors work to fill needs and solve pain points as customers grapple with
component shortages and increased demand.


THE NEW JOURNEY

Designers are thinking differently about the way they approach design and where
they source products. Sadly, in some instances, engineers have slowed their
design work. Others have continued to design without being able to produce.
Conversations have shifted from keeping good pace and timing to what they can
and can't do—what projects to keep, what projects to eliminate, and what
projects can be done without certain components. This new journey has also
complicated the task of sourcing and buying components.

“These tasks are stressful to begin with and even harder when parts are also in
high demand,” said Coby Kleinjan, Mouser Electronics vice president of Americas
Customer Service and Sales. Currently, buyers find themselves not just wondering
whether they bought too much or too little. They're juggling multiple
manufacturers for each product.

Sourcing and buying components are complex tasks in the best of times and
extraordinarily difficult in today's design and manufacturing landscape. Whereas
Just-In-Time (JIT) and lean manufacturing have dominated electronics design and
manufacturing for decades, these processes rely on two characteristics absent in
today's supply chain: predictability and reliability.

"With reduced access to raw resources, chip shortages, and transportation
issues, the state of the electronics supply chain are anything but predictable
and reliable,” Kleinjan said. “Accordingly, customer needs have changed.”

Most significantly, customers work on forecasting component needs further ahead
of manufacturing testing and production, and they want to be confident that they
have ordered the right amount. Seeking solutions, many customers are considering
their own inventory, and they want to harness data insights to help predict
needs. Customers also want simple, reliable, and streamlined support—in both
process and people—to help them navigate engineering and production.

One thing is clear: “Companies doing well are the ones who have adapted and
stayed flexible; the ones that are having a hard time are the ones who have
continued to use what they used yesterday,” Kleinjan said.


DISTRIBUTOR SOLUTIONS

Recent shortages and higher demand have strained familiar channels, disrupted
the status quo, and forced customers to find alternatives to help keep them
moving forward. Until recently, customers have worked directly with individual
electronics manufacturers to access product lines throughout design and
manufacturing processes. Electronics distributors are now filling this niche
more and working to solve other purchasing pain points, Kleinjan said.

Accordingly, distributors are increasingly aiming to understand customer project
needs and to help engineers innovate with new products instead of just reusing
designs from previous eras. This shifts the customer-distributor relationship
from being purely transactional to one of partnership.

“Now more than ever, customers need more than just support on components,” said
Chris Elwell, Mouser’s Director of Customer Development. “Providing strategic
value helps us cultivate a broader partnership with customers.”

Distributors are working to solve customers’ delivery and scheduling issues by
helping plan extended design and manufacturing schedules. Called predictive
anticipation, this means building out projects six or 12 months in advance,
sometimes even longer, and having components arrive at the right place and time.

“Scheduling and delivery are critical,” Elwell said. “Because distributors are
at the center of the supply chain, we're able to help customers with these
challenges, sometimes even before they know what questions to ask.”


CONCLUSION

Reduced availability of raw resources, chip shortages, and transportation issues
have forced designers and buyers to seek new avenues for bringing projects from
design to market. In response, electronics distributors are filling roles
previously provided by manufacturers and are helping revive engineering and
production by collaborating with customers to solve purchasing pain points.

Mouser’s philosophy has always been to “do right” by customers and make
engineering and manufacturing as seamless as possible. Helping to solve new pain
points is an evolution of Mouser’s customer service philosophies and practices
rather than a change.

“Tomorrow's innovations require design engineers and buyers understand
challenges and needs, find the best solutions, and adapt—sometimes very
quickly—to changing conditions.” Kleinjan said. “That means we have to do the
same.”

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