Press Release: Verical “DemandMatch” Slashes Sourcing Times for Electronic Components Shortage Buyers February 3, 2010
Bulk Search Tool Matches Open Orders with Available Supply for Multiple Shortages
- DemandMatch™ automates workflow to shrink sourcing time from hours or days to minutes
- Online catalog eliminates the spreadsheets, phone calls and web searches used by buyers spending 40 percent of their time sourcing 1 percent of their parts purchases
- Industry-first sourcing feature only available on Verical
SAN FRANCISCO — February 3, 2010 — Verical, Inc., the online outlet for electronic components, today announced DemandMatch™, the industry’s only bulk search tool that matches open requirements with available supply automatically. With DemandMatch, open requirements generated by planning systems are matched with available supply at www.verical.com, segmented, and returned via email to the buyers responsible for purchasing the components. Available now, DemandMatch dramatically reduces the time it takes buyers to procure parts “on demand,” slashing sourcing time from hours or days to minutes.
“Parts shortages are weekly, hair-on-fire problems for EMS companies,” said Chris Cookson, vice president of operations for Verical. “When a production line goes down, it can cost hundreds of thousands of dollars per day in lost revenue and market share. Worse still, if orders are perishable then each lost sale impacts the bottom line at the gross margin level. EMS companies spend anywhere from one to ten percent of their total material spend filling shortages by sourcing from the secondary market. Buyers typically spend over 40 percent of their time sourcing the 1 percent of the parts they purchase to cover shortages. DemandMatch puts out the fire, saving companies time and money while keeping production lines up and running.”
DemandMatch automates the workflow for sourcing time-critical components that can’t be obtained through the primary channel. On a weekly basis, buyers armed with spreadsheets and telephones spend countless hours calling distributors and brokers, hunting down parts needed to fill gaps between planned and actual parts requirements. Despite the huge outlay of time, these “on demand” requirements make up only one to two percent of the total parts purchased. DemandMatch compresses sourcing time to zero by processing open requirements sent automatically from buyers’ enterprise planning systems and notifying buyers of matches via email within minutes.
DemandMatch in Detail
DemandMatch delivers in-stock supply information to buyers with extremely short deadlines, allowing them to fill their time-critical needs for production shortages, new product introduction builds, and repair orders. Groups of factories can be served simultaneously. DemandMatch emails buyers only when exact matches or drop-in replacement upgrades are available for immediate purchase and delivery. Buyers need only click on hyperlinks embedded in the email to view matches.
The DemandMatch process begins when Verical receives an electronic requirements report from the planning systems of participating OEM and EMS companies. These lists may be submitted in any electronic format, including industry-standard protocols such as RosettaNet, web services, XML, cXML, xCBL or EDI. Alternatively, buyers may upload lists directly to the Verical website by registering and then clicking on the “Buyer’s Workbench” tab.
After the requirements list is submitted to Verical, DemandMatch automatically generates match lists and segments them by buyer. The individualized match lists are subsequently emailed to each buyer. Each email includes hyperlinks that navigate users to matches in the Verical outlet. There, buyers review the matches against their open requirements, select the parts they wish to buy and check out.
Cookson, who held the position of VP, supply chain solutions at Solectron prior to joining Verical, said, “DemandMatch delivers component solutions to buyers in advance of the Monday morning shortage meeting, provided that their planning systems are calibrated to send information to Verical after running over the weekend. If our automated tool can enable buyers to get parts in the air two days earlier than through a manual sourcing process, we’ve reduced their risk considerably. Their lines stay up, penalties are avoided, and they can deliver their finished products on time.”
For more information on Verical, Inc., please visit https://www.verical.com. For additional perspectives, visit and subscribe to the Verical blog at http://www.verical.com/comm/category/blog, and follow Verical on Twitter at @Verical.
Verical Website: https://www.verical.com
Company Overview: https://www.verical.com/about/
Blog: “The Electronic Components Source” http://www.verical.com/comm/category/blog
Verical on Twitter: http://www.twitter.com/Verical
Verical on Facebook: http://www.facebook.com/Verical
Industry Insights: presentations, articles, websites; https://www.verical.com/about/resources/industry.html
Counterfeit White Paper: “The Real Solution to Fake Parts: Securing Supply Chains through Data Transparency and Better Market Design”; http://bit.ly/counterfeitwhitepaper
Verical is the creator of the Verical marketplace, an online outlet for electronic components that provides buyers traceable, branded goods at discount prices. Top manufacturers and franchised distributors publish slow-moving inventory to Verical to optimize prices and yields anonymously. Founded in 2007, Verical is a San Francisco-based start-up backed by Valhalla Partners. The company is experiencing rapid growth with over 27,000 parts available today in the Verical outlet at www.verical.com.
DemandMatch is a registered trademark of Verical. All other brand names and product names are trademarks or registered trademarks of their respective companies.
Tags: electronic components, distribution, electronic component catalog, electronic components outlet, excess inventory, online catalog, shortage purchasing, shortages, supply chain integrity, supply chain security, DemandMatch
Susan D’Elia, media relations for Verical