One of the biggest challenges facing electronic product manufacturers is being able to find the correct parts, integrated circuits, and other components required to build their products. Further adding to this challenge is when components become obsolete or scarce, making it more difficult to find exactly what is required. Any time this occurs, manufacturers are left either dealing with paying higher prices for those items they require, or having to adapt their product designs to function with more readily available components. Electronic component procurement is one method for preventing part scarcity and ensuring there is plenty of stock available, even in cases where the parts are obsolete.
When an electronic product manufacturer takes advantage of the services available from an electronic component procurement company, they are able to ensure a regular flow of parts and components for the entire production run. The first step is to determine exactly what items are required to build and assemble the finished product. After developing, designing, testing, and approving the final design, the next step is to order the correct inventories of each component and part. Procurement firms normally give manufacturers different options, like reserving a large number of required items and shipping them in small batches as needed, or ordering large quantities in a single order.
Electronic Component Procurement Methods
There are advantages and disadvantages to both procurement methods. Large batch ordering means the manufacturing firm has to set aside space within their facility and carry inventories of every single component and part they require. The firm has to invest a large amount of money into parts inventories upfront, which may be difficult for smaller operations. The main drawback to stocking large inventories of parts is if updates are made to product designs and specific components are no longer required, or if the product is discontinued. Unless these components and parts are used in multiple products, the manufacturer ends up with leftover inventories of items that are never going to be used, not to mention wasted company resources.
Reserving components and parts, and having them shipped in smaller batches, ensures the manufacturer is receiving only what they require, when they need it. Normally, as soon as the parts arrive, they are used, so there is very little inventory to stock. In the event the product’s design changes or is discontinued, most electronic component procurement firms work with the manufacturer, so they do not have to accept any remaining parts and components from the reserved batches that have not yet been shipped. The disadvantage to this method would be if the manufacturer did not reserve the right number of parts and components and, later, the parts became scarce or obsolete. Then they either would have to modify the product design, or pay more for the parts and components because they are not readily available.
For assistance in finding and procuring the rights parts and components for your electronic products, including hard-to-find, obsolete, and discontinued parts, contact us today at 321-773-9991.