Tag Archives: Procure International

E-Commerce Increases Opportunities, Risks in Electronic Parts Procurement

As e-commerce opens up the electronics market to a growing number of suppliers, this shift in how companies get their components opens up new opportunities and challenges that they’ll need to carefully navigate to get the best value. Differentiation of the electronics supply chain means that electronic component procurement professionals have more options, but not all of those options are good.

Buying and selling components online has quickly usurped the place of traditional electronics component procurement. Today, 50 to 75 percent of all new business and almost half of total sales volume in the industry derives from e-commerce. This change has disrupted the electronics components industry, creating greater competition, but also introducing greater uncertainty into the market.

A Larger Sales Area

The rise of e-commerce platforms has provided sellers of electronic components with a global marketplace. In the past, electronics component manufacturers were often confined by geography and communications limitations to one country or region, unless they had a huge sales force traveling to make connections and sales. Today, all companies desiring to purchase electronic components need to do is get online and do a brief web search to find several companies worldwide offering the parts they want.

This increased availability of components has created a more competitive market in terms of price, but has also created some challenges for manufacturers and electronic component procurement professionals alike. Because e-commerce has globalized the market, manufacturers and buyers must work out compliance and tax issues as components move from country to country. Not all countries’ regulatory schemes are alike, and ensuring that components comply with the law is important to avoiding fines and penalties. Providing adequate communications is also a challenge, as buyer and seller may be on opposite sides of the world and speak different languages.

Perhaps two of the largest challenges created by e-commerce’s differentiation of the components market place involve customer support and counterfeit components. Electronics component procurement professionals are used to a high level of support for making purchases, and online sellers may struggle to deliver the 24/7 support presence a globalized market requires. Providing adequate proof of authenticity of electronic parts is also a key challenge for component distributors in a globalized marketplace.

The Support Challenge

In the old model of electronic component procurement, support was simple. Buyers called their parts vendor, who they often had a longstanding relationship with, and requested the information they needed. This was done during regular business hours, or maybe involved a little scheduling to accommodate vendors and buyers who were in slightly different time zones.

E-commerce flipped all of that on its head. Suppliers and buyers are often on opposite sides of the globe, and buying and selling online has taken much of the human contact involved in procurement out of the equation. Buyers still want a high level of support – particularly those purchasing EOL or obsolete parts – and companies that can provide 24/7 support have a distinct advantage over those that don’t. Providing online options for tech support, such as the ability to chat with support technicians can help bridge the gap, as can online tools that answer common questions.

At Procure International, we have a model that works well for providing component buyers with the support they need for active parts, as well as EOL and obsolete parts. Sales staff members are trained to provide support to design engineers, procurement engineers, and other consumers. The company also goes the extra mile to provide clients with means to authenticate the provenance of their components, assuaging any worries about counterfeit or bogus parts.

Stopping Counterfeit Parts

An unfortunate side effect of the rise of ecommerce in electronic components sourcing is the rise of unscrupulous parts suppliers. Electronic component procurement professionals logging on to the Internet to find parts can often have a difficult time distinguishing legitimate parts vendors from fly-by-night websites that offer bogus credentials and a slick online storefront to trick buyers into purchasing substandard parts.

The proliferation of counterfeit parts cannot be understated. It is wide and impacts many industries. IHS, an information and analytics provider, reports that about 10 percent of all technology products sold worldwide are counterfeit. A 2011 Pentagon report found that 1 million bogus electronics components had been sold to the Pentagon. The Semiconductor Industry Association reports that electronics component counterfeiting costs that industry $7.5 billion per year.

There is a huge market for counterfeit and bogus electronic parts. Counterfeiters have a wide variety of methods to acquire and make bogus parts. Some retrieve parts from industrial waste to use as a template to create counterfeit parts. Others salvage discarded parts from electronic waste storage facilities, refurbish them, and rebrand them so they can be sold as new, legitimate components. Another common tactic involves taking lower cost, lower quality parts and rebranding them as higher-end components.

The problem of bogus and counterfeit parts is especially pronounced in the markets for EOL and obsolete parts, where buying options may be limited. IHS reports that one out of every two obsolete electronics components is counterfeit.

The consequences of buying pirated or counterfeit electronics can be huge for manufacturers. These substandard parts can malfunction, causing the products they are used in to fail, creating not only a bad consumer experience, but also the potential for legal liability if the product failure causes injury or other damage.

Online sellers are taking steps to separate legitimate vendors from sketchier dealers in electronic components. Legitimate sellers are stepping up efforts to present credentials to buyers and to provide online tools they can use to trace the origin of components.

Although the explosion of e-commerce in electronics component procurement does have some drawbacks, the increase in availability and competitiveness it injects into the market vastly outweigh these disadvantages. With a good dose of wariness among buyers and increased steps to provide reliable authentication and customer support by electronic components manufacturers, these disadvantages can be greatly mitigated.



Stock Up on Potter and Brumfield Relay Switches to Avoid Production Delays

There are a wide variety of electronic systems and sub-systems on the market today which rely upon Potter and Brumfield relay switches, from small personal consumer electronics and automobiles, to large manufacturing equipment and electronic products of all sizes. Having an ample supply of relay switches made by Tyco Potter and Brumfield is essential to maintaining just-in-time manufacturing and production schedules.

One way to avoid delays in production and manufacturing processes is to obtain all of the relay switches you require directly from an electronic component procurement firm. Electronic component distribution and procurement suppliers normally stock an extensive inventory of electronic parts and components, not only from Potter and Brumfield but also all of the other major electronic parts and components manufacturers needed to produce your finished goods.

Benefits of Obtaining Potter and Brumfield Relay Switches from a Procurement Company

Ordering Potter and Brumfield relay switches from an independent components procurement company has its benefits over ordering directly from the manufacturer. First, if there are shortages of certain relay switches, due to material shortages or phasing out a product line, you you can rely on available supplies from an electronic component procurement company. Normally, independent distributors monitor market conditions and are well prepared to meet customers’ demands whenever there are shortages from the manufacturer or the manufacturer discontinues a product line.

Another key benefit of obtaining your electronic parts, components, and relay switches through an independent procurement firm is having the flexibility to order only the quantities of the items you need and have them delivered when you want them. An independent distributor is able to set aside the quantities of everything you need to complete your production run, and then ship the items in smaller shipments as you need them.

Further, your company gains the benefit of one-stop-shopping for all of the electronic relay switches, components and parts you need. Rather than having to deal with hundreds of manufacturers, you can deal with a single point of contact. Having only one vendor also makes it much easier to keep track of raw material inventories, to track shipments and to manage record-keeping.

To learn more about component sourcing services available from us here at Procure International, or the broad range of electronic items we stock, feel free to contact us today by calling 321-773-9991. We stock extensive inventories of products that are approved for use in manufacturing finished goods for government agencies.

Astec Emerson Offers Solutions for Network Power Systems

Astec Emerson offers electronic manufacturing firms many options for electronic parts and components. Astec Semiconductor produces power management integrated circuits (ICs) for Astec Power components that are optimized to fit the specific requirements and needs of electronic manufacturers. Astec Power builds standard, modified standard, and customized DC-to-DC and AC-to-DC power supplies for applications requiring a reliable power supply, with power options ranging from one watt to six kilowatts. Astec Power is a leading global supplier of the products they manufacture.

Being a wholly owned subsidiary of Emerson Network Power has allowed Astec Emerson to take advantage of the many different divisions under the Emerson umbrella of companies, and offers electronic manufacturing firms access to a wide range of technologies, including power components, climate systems, and power systems. In addition, Emerson Power has the solutions and services available to help support and build entire network power infrastructures to solve power reliability needs of business operations of all sizes.

Other divisions of Emerson Power besides Astec Emerson are Cambridge Products, Emerson Energy Systems, Aim Electronics, Copeland Specialty Scroll, ASCO Power Technologies, Engineered Endeavors, Connectivity Solutions, Lo Dan International, Control Concepts, Fiber-Conn Assemblies, TSI of Florida, Johnson Components, Viewsonics, Leroy-Somer, Vitelec Electronics, Liebert, Optical Connectivity, Liebert Global Services, Northern Technologies, and Liebert Hiross.

One common application for Astec Emerson AC power supplies is for networking devices and components, such as uninterruptible power supplies (UPSs), wireless routers, network hubs, and network servers. Applications for AC-to-DC power systems available from Emerson Network Power are addressing and satisfying the small power requirements many of today’s modern electronic devices require, such as digital loop carriers, microwave communication systems, FTTxs, cell site backhauls, radios, and DSLAMs. Power solutions from Emerson Network Power and its subsidiaries range from mini DC power systems to large DC power systems, as well as distribution bays, DC power retrofits, and DC UPS.

Obtain Astec Emerson Parts and Components from a Procurement Firm

There are several different methods for obtaining Astec Emerson electronic parts and components for use in manufacturing and network power systems. Manufacturing firms that use Astec Power and Astec Semiconductor products on a regular basis may obtain them through an electronic component procurement firm. Utilizing the services of a procurement company ensures you are able to source the quantities of the parts and components when you require them for your manufacturing processes. In addition, an electronic procurement company normally stocks a wide range of items, including discontinued products. As a result, if you are looking for specific components no longer built by Emerson Power or its subsidiaries, the best way to find what you require is to order them from a procurement company.

Besides stocking parts and components from Emerson Network Power and its subsidiaries, an electronic procurement supplier provides you access to numerous electronic parts and component manufacturers worldwide. Instead of having to source your parts and components from each individual manufacturer, you are able to find everything you require from a single supplier. For further questions, or assistance in finding electronic parts and components, feel free to contact us, here at Procure International, by calling 321-773-9991.



The Easiest Way to Find Electrical Parts and Components during Shortages

Depending upon the methods you use for electronic component procurement and managing your supply chain, obtaining all of the electronic parts and components required to build finished goods for your customers can be challenging at times. As has happened in the past, a major earthquake in Asia can result in the shutdown of production facilities, which causes shortages of key components. Whenever shortages like this occur and there is high demand for the part, prices start to increase at a fast pace. Since you are paying more during a parts shortage, you are often forced to pass the increase along to your customers or absorb the difference and sell the finished goods at a loss.

One effective method for dealing with unexpected electronic parts shortages is to source them from an electronic component procurement company. Procurement firms normally have large and extensive inventories of high demand parts in stock and available. Utilizing a professional independent distributor or electronic component procurement company in times of product shortages can be an excellent way to mitigate your risk.

Finding Obsolete Parts from International Suppliers Using Parts Procurement 

International manufacturers discontinue parts due to changes in new technologies or reduced production runs on parts as demand declines. This can make it difficult to obtain all of the electrical parts and components you require until your company has had time to redesign your finished goods. In addition to being a primary source during unexpected parts shortages, an electronic component procurement company is a beneficial supplier partner for hard to find and obsolete parts in industries like:

  • Data Communications
  • Medical Equipment
  • Wired and Wireless Telecommunications
  • Military and Commercial Space
  • Industrial Electronics

ISO 9001:2000 certification, government certifications, and strict quality control standards are all available when sourcing parts from a procurement company. All of the parts you purchase are identical to the ones you would normally source directly from the manufacturer, except you are sourcing them from an electronic component procurement firm.

Order hard to find, obsolete, and other electrical parts you need by contacting us at Procurement International. Call 321-773-9991 today.