Forbes magazine includes a useful reminder that Focusing Only On Price Has A Cost and may actually lead to a loss of competitiveness.
“Most procurement and sourcing teams are evaluated on the basis of contracted or projected cost savings generated from sourcing events. These sourcing events, which only happen quarterly or annually, are based on some expectation of total future volume based on rough forecasts,” says Forbes, reporting comments from SupplyFrame’s Steve Flagg. “This is a persistent challenge since the global electronics value chain is increasingly complex and volatile. There are more risk factors than ever before.”
Instead, Forbes reports that semiconductor and electronics components should undertake “direct material strategic sourcing on a continual basis”. This can enable you to make more informed decisions and build a more competitive, innovative, profitable and resilient product portfolio.”
For help with competitive sourcing, you may wish to consult an expert in electronics component supply. With more than 27 years of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.
With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.
For more help with looking at supply chain options, contact Astute Electronics here