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How to find your way in the electronic components market

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16/09/2020
How to find your way in the electronic components market

Do you need electronic components for your company? Are you sure you know how to find your way in this complex and articulated market?

When you purchase electronic components, different types of suppliers are available. From the direct relationship with an electronic manufacturer to the official distributor to the use of independent distributors and brokers. But for all these categories there are many advantages and some disadvantages. Throughout the life cycle of your product, you will likely have to use a combination of different suppliers along the way. In this article, we examine 3 different options and explore some of the pros and cons associated with using each one.

Direct purchase from the manufacturer

Electronic equipment manufacturers design, manufacture, and brand their devices. They are responsible for releasing new technologies to the market and phasing out older products when demand begins to decline. Unfortunately, they can cause problems for original equipment manufacturers (OEMs) if they are not informed in time of planned obsolescence or if they do not want to invest in a potential redesign. Electronic manufacturers tend to sell their products in two ways; either directly to the end-user (which tends to be sufficiently expensive) or through several authorized distributors. As a buyer, dealing directly with the manufacturer is usually the most desirable way to purchase electronic devices or components. However, as mentioned above, it is not always possible to do so unless your company has significant levels of activity.

Official distributors

These are the reference points you can turn to create a constant and not necessarily fast supply chain. They come between you and the main manufacturers, oftentimes because of this, they do not guarantee the absolute best price of components.

Broker

The broker is neither a manufacturer nor an authorized distributor. It has no connection with a particular franchise. It is “specialized” in the procurement of parts difficult to find and obsolete. Unfortunately, purchasing outside the franchise can involve a high degree of risk, sometimes with reduced technical and after-sales support and, of course, potential gaps in traceability. As in any industry, when demand is high, the market naturally heats up and prices offered through the grey market can begin to fluctuate wildly. Unfortunately, in an allocation scenario, for example, it is not uncommon for the same component to be sold multiple times. When you find the stock of “available” brokers online, you should always pay attention to the codes, quantity, and date offered to get a better idea of the stock levels actually available. If you see many sellers advertising very similar quantities and date codes, it is likely that none of them have the stock physically and all of them are connected to the same source. But if you need to use them, we recommend that you select a central group of brokers that you check regularly in order to minimize the level of risk you expose your business to.

Independent distributors

Independent distributors come between you and major manufacturers and offer you the best components at more advantageous conditions than official distributors. For example, if you need a LED driver, Infineoncan offer you BCR420U, FZ1200R12KE3, IPD90R1K2C3, or SFH350V in a very short time. The independent distributor, as opposed to the broker, tends to build a solid relationship with the customer, through advice and objectives set to be achieved and supply from reliable and continuous sources. The broker often instead tries to get the maximum profit from every transaction, taking advantage of the necessity of the client to have at all costs of the determining components.

Do you want to build an ongoing relationship that guarantees precision and reliability? We are at your disposal. Contact us, it’s really worth it!

 

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