A Reliables Alternative-parts strategy for Electronic Components Buyers

Visit a supply chain management class, and you are sure to overhear a lively discussion on the ways in which businesses can reduce the risk of supply chain interruptions. Perhaps nowhere is this topic more relevant, though, than in the electronics industry. Given the dynamics of today’s market, buyers must have a reliable source for alternative electronic components to mitigate risk and avoid disruptions

Many rely on Verical as their go-to resource for electronic parts in both stable supply chain environments and when disruptions inevitably occur. Verical’s electronic components marketplace has over one million parts available — all warrantied, traceable, and 100% guaranteed. With Verical’s competitive pricing structure, buyers can locate and purchase hard-to-find electronic components while managing budget constraints.

These traits are invaluable to today’s buyer seeking alternative electronic parts. And, it seems, the need for an alternative-parts strategy is more important than ever. Let’s look at three real-life scenarios challenging today’s supply chains and where Verical can help.

Three factors challenging buyers of electronic components

1. Shortened lifetime of electronic products

The rapid pace of technological development has shortened the shelf life of electronic products. Formerly measured in years, the lifespan for these products — and oftentimes their electronic components — is now measured in months. This can leave buyers scrambling to find obscure or no-longer-manufactured electronic parts.

2. Global disruptions

Global supply chains are subject to a myriad of natural and man-made disasters. Most businesses have some type of strategic plan to combat uncertainty. But quite often these plans fall short of fully minimizing supply chain disruptions. In the aftermath of a devastating 2011 Japanese earthquake and the resulting tsunami, Mitsubishi Electric Corporation found that more than 200 of their suppliers were located within the affected area. While they had previously identified alternative electronic components suppliers, testing of these suppliers required a three-month time period, leaving Mitsubishi without electronic parts, despite their planning efforts.

3. Electronic components industry acquisitions and mergers

Merger and acquisition activity within the electronic components industry hit a 12-year high last year. Solid performance in recent years has left many companies cash-rich, increasing opportunities for acquisitive growth. Seeking to improve margins, companies have bought competitors or sold off low-performing product lines. Some companies are joining forces to deliver more interconnected solutions as integrated system offerings become increasingly more in demand. But sometimes this M&A activity can catalyze a reduction of part types, leaving some supply chains without a part supply they once could depend on.

As supply chains grow progressively more complex, supply chain risk-management strategies will continue to generate discussion. And the need for a reliable alternative-parts supplier will be a central part of those conversations.

It's suggested alternative parts feature makes the Verical online components marketplace the go-to resource for alternative-parts buyers, while its transparent pricing structure makes Verical a trusted daily operations partner. Verical connects buyers to over 750 electronic component manufacturers through a searchable inventory of available parts valued at over $10 billion.