Electronic Components Sourcing: Overcoming Supply Chain Challenges

Sourcing high-quality electronic components is essential to create quality products for your brand. Choosing the right parts ensures that your products are functional and useful for end users. 

However, electronic sourcing isn’t as easy as it seems, especially in the face of supply chain challenges. Sourcing must be handled carefully to ensure you receive high-quality product parts. Below, you’ll learn more about sourcing and overcoming supply chain challenges using different sourcing options.

Effective Strategies for Sourcing High-Quality Electronic Parts

Sourcing electronic components involves looking for high-quality parts that you can use in your products. Sourcing agents find electronic parts on your behalf, which helps ensure you work with the best supplier at the most affordable price without sacrificing quality. Businesses that don’t utilize sourcing services typically store their sourcing data in spreadsheets or separate files, making information difficult to find.

Sourcing electronic parts for your products is a time-consuming process with various challenges. If you’re trying to source your electronic parts but aren’t sure where to start, it’s best to utilize a professional sourcing agent. These agents can organize data about potential electrical component distributors in one place, making the process less complex. 

Many markets and industries rely on sourcing agents — or electronic components brokers — to source components for electrical system designs and other applications. Some of these markets and industries include the following: 

Aerospace
Military
Automotive manufacturers
Electronics manufacturers
Consumer electronics

Market Solutions

Any product that requires electronics must source quality electronic parts. Distributors help ensure you find high-quality parts at an affordable price.

How Supply Chains Affect Sourcing Components

Supply chain challenges affect the ability to source components. Some of the ways that supply chains affect sourcing include:

Logistics disruptions: The challenges from the COVID-19 pandemic disrupted the supply chain, especially regarding travel — many global ports and airports shut down worldwide. As a result, goods, including electrical components, piled up in storage. The limited international trade flow made accessing components necessary for numerous industries harder. While these lockdowns have lightened up, many sectors still face challenges from continued logistics disruptions. 
Production delays: Many manufacturers are still trying to catch up from the delays caused by COVID-19. They still have a limited supply of components, making it challenging to source the electronic components necessary for their products. 
Limited third parties: Many companies focus on having one major supplier, but other businesses are looking for alternatives to diversify their sourcing after the pandemic. However, fewer third-party suppliers are available since many companies are looking into other options. 
Labor shortages: COVID-19 has caused labor shortages, which has created challenges in keeping up with demand. As a result, fewer components were available throughout the pandemic, and manufacturers are having trouble keeping up. Labor shortages in transportation also make it more challenging to have components delivered on time, which limits what businesses can supply their consumers.

Component Supplier Options

You have a few options regarding where to purchase electronic components from:

1. Buying From Manufacturers

Electrical components manufacturers are responsible for their products’ design, production and branding. Manufacturers help ensure products reach end users through authorized distributors or a direct line. There are many benefits of buying directly from an electrical component manufacturer, including the following:

Shortening the supply chain
Access to high-quality, genuine products
Quality after-sale services
Accountability if something goes wrong

While there are many benefits to buying from the manufacturer, there are also some drawbacks. For example, periods of disruption could cause manufacturers to prioritize large authorized distributors over your business. Higher spending levels are also necessary to become an eligible customer.

Reliable Manufacturing Services

2. Distributor-Based Purchasing

You may prefer distributor-based purchasing, which includes several selling channels, such as wholesalers, international distributors and retailers. You’ll also have access to numerous online stores to reach a broader market. Some of the pros of distributor-based purchasing include the following:

Access to expert distributors
Delivery of products on time
Finding products that best suit your needs

A potential drawback of distributor-based purchasing is that it lengthens the supply chain, which leaves your business vulnerable to more disruption if a setback occurs. Another drawback is that product quality, packaging and price could be compromised.

3. Working With a Broker

Brokers don’t have formal ties with authorized distributors. Distributors can get hard-to-find parts, but there is some risk. You may not need after-sales support, or you may receive counterfeit goods. Some brokers also have higher prices than if you chose a different option.

4. Working With a Catalog Supplier

Another sourcing option is working with a catalog supplier. These suppliers offer various products in small quantities, allowing you to buy them in smaller amounts and receive your delivery quickly. Another benefit of catalog suppliers is that they’re more convenient than other sourcing options.

However, since catalog suppliers are more convenient, prices are often higher than other sourcing options. If you’re looking for a more affordable option with a larger supplier, you may be better off buying directly from the manufacturer or utilizing distributor-based purchasing.

Strategies to Combat Constraints

Using the right electronic component sourcing strategies can help you combat supply chain issues. Methods you can use for electronic sourcing components and overcoming limitations include:

Optimizing your selection process: One way to maximize your component selection process is by adopting a de-risking sourcing strategy. This strategy involves avoiding obsolete components, understanding their lifecycles, and only utilizing reputable vendors. Using a de-risking strategy helps you find reliable and genuine components. You can also plan for new component purchases when you keep up with their lifecycle, allowing you to anticipate delays before they happen and purchase in advance.
Partner with a contract manufacturer (CM) with supply chain services: Some CMs don’t offer supply chain services to help you overcome the challenges within the supply chain. Choosing a CM with these services can make navigating constraints within the supply chain more manageable, helping maintain your electronic component supply so you can keep up with demand.
Decide on a supply chain packaging service type: You can choose from three supply chain service levels that will determine your CM’s and your responsibilities. These levels include full consignment, full turnkey and partial turnkey. Full consignment means you are responsible for managing your supply chain, and some responsibilities shift toward your CM with the other two levels.

Get Expert Help with Your Electronic Component Sourcing Today!

We’re a trusted electronic components supplier who offers a wide range of services, including manufacturing, rapid design and prototyping, and automation and cost engineering. We aim to consistently exceed our customer’s expectations by putting them first and delivering superior service. We can help you find component-sourcing solutions to help you handle the challenges within the supply chain.

We can help you bring manufacturing solutions to reality, helping you achieve your goals and meet your customers’ demands. Contact us today to learn more about how we can help you find solutions for your business!