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ECIA Executive Conference: a Forensic Look at Supply Chain Security Page 10 ELECTRONICS SEPTEMBER 2018 sourcing NORTH AMERICA ECI a A E fore xec : nsi utive Conference c look y at supply chain securit ALSO INSIDE: Defense • Passives • Connectors • Development Kits • Semiconductors AN MMG PUBLISHING TITLE 180803_QualR_ELECSRG_US.indd 1 7/31/18 3:37 PM Editor's Word On the cover – September 2018 ECIA Executive Conference: a forensic look at supply chain security page 10 Contents 04 Think of the Economy Keeping up with the good times little ones Unless you have been holidaying on a remote island over the past 12-months you will understand certain categories 06 of popular components are becoming a little awkward to source regarding volume and timescale. It seems to be News a combination of events driven by Display support for US purchasers evolving manufacturing methods, global growth, emerging product technologies and hysteresis in adding more capacity. 14 Distributors have responded with a universal mantra. The more loyalty, transparency and forward planning a Defense customer can offer, the more likely a Making sense of the aftermarket distributor will be able to help. Sounds fair to me. I have a question re forward planning. 23 For large OEMs with an established product range, a stable market share Semiconductors and years of sales data, I would imagine Resourceful buyers eliminate risks (bar some unexpected natural disaster) projecting components consumption across a 12 to 24-month period would be relatively easy. 32 However, for one group, startups, the reverse is true. It’s likely they will Buyers’ Guide have a new technology that potential All the facts and figures to help you buy customers have never heard of, zero market share and no sales data. At the point of launch everything is guesswork. Issue 73, Vol.9 No.8 I’m not too worried if a new consumer gadget is a little late to market but what Contact Published 10 times per year if the product is an essential, lifesaving by MMG Publishing US LLP medical device. MMG PUBLISHING US LLP EDITORIAL CIRCULATION Normandale Lake Center So, what is a distributor to do? Push the Managing Editor: Jon Barrett Circulation Manager: Vicky Leary 8400 Normandale Lake Boulevard startups to the bottom of the list and [email protected] [email protected] Suite 920, Bloomington MN 55437 Contributing Editor: Amy Barker Circulation Account Manager: Liz Poole miss the potential opportunity to share [email protected] [email protected] Tel: 866.364.0951 in the success of a groundbreaking Editorial & Production: Thomas Smart Fax: 952.378.2770 [email protected] DESIGN new product or restrict supply to a Editorial & Production Assistant: Ben Kitching Graphic Designer: Jeremy Roberts Printed in the United States loyal customer to support a fledgling [email protected] [email protected] © 2018 MMG Publishing US LLP business. ADVERTISING PUBLISHER ELECTRONICS SOURCING Director of Sales: Charlotte Morgan Mark Leary IS INDEPENDENTLY ABC AUDITED Maybe I’m imagining a problem that [email protected] [email protected] 2005/2017 Area Sales Executive: Emma Poole Office Manager: Denise Pattenden doesn’t exist. If it does, I’d be interested [email protected] [email protected] to hear buyers’ and suppliers’ proposed Marketing Manager: Amy Leary [email protected] solutions. Articles appearing in this magazine do not necessarily express the views of the Editor or the publishers. Every effort is made to ensure the accuracy of information published. No legal responsibility will be accepted by the publishers for loss arising from articles / information contained and published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form without the written consent of the publishers. Cover image – ©shutterstock.com/Lightspring September 2018 03 Keeping up with the good times Victoria Kickham is a Supply chain services, technology take center stage as buyers keep freelance writer specializing pace with the strong economy in manufacturing, distribution and supply chain issues Economy • By Victoria Kickham uyers face a different set of challenges as the economy agricultural markets as just a few examples of areas where Avnet is continues its upward climb, particularly when it comes to seeing an increase in demand for technical service, from design all managing their supply chains. Strong demand across just the way through to production. The distributor unveiled a suite of IoT B about every end market has extended lead times for many services this year aimed at meeting such needs; they include advisory, electronic components and created pricing pressures as well as labor design and build, cloud and digital, and lifecycle services. challenges—especially in the manufacturing sector, where employment is expanding and skilled workers are hard to find. Such capabilities are part of a larger transformation at Avnet over the last 18 months that has included the addition of engineering It all adds up to busy times for buyers at organizations of all sizes, communities such as element14 (via its acquisition of Premier Farnell) who face both fundamental and technological challenges in mid-2018. and Hackster.io as well as manufacturing solutions provider Dragon Fundamentally, today’s challenges come down to constraint: Demand is Innovation. high, and it’s placing distributors in a “chief expediter” mode, says Phil Gallagher, global president, electronic components, for Avnet. Avnet’s transformation underscores a continuing evolution of the distribution sector, as distributors seek to move beyond providing “We’re doing what we can to feed the lines for our customers,” Gallagher products and services to offering customers complete solutions. says, pointing to the key challenges facing buyers in today’s marketplace. “Right now, [this is] one of the top [issues] that may not have been [an “[We tell customers], ‘We want to be your solution provider. If you have issue] two years ago because inventory and parts were plentiful.” an issue, a challenge, call [us],’” Gallagher explains. “It’s really what we’re moving toward.” Traditional supply chain services such as forecasting and inventory management come into sharp focus in times like these, he adds, as Other headlines over the summer emphasize the trend as well. customers concentrate on keeping production lines running smoothly Interconnect, passive, and electromechanical specialty distributor TTI and efficiently. announced an expansion of its semiconductor specialty business, TTI Semiconductor Group (TSG), in July with its purchase of California- Still, as business challenges go, Gallagher says these are good ones to based distributor RFMW Ltd. The deal is expected to close this fall, and have. will add RFMW’s focus on radio frequency and microwave components, semiconductors and related engineering support to TTI’s lineup of “I see them as positive … because it means things are good,” he says, specialty services. TTI launched TSG in 2017 with its purchase of pointing to strength across Avnet’s end markets and regions. “Most of Symmetry Electronics as a way to evolve its specialist model to include our customers are doing well … There are some exciting things going semiconductor products and services. on. We’re seeing it in all regions.” “RFMW will be an important addition to the TTI family of companies Technology challenges persist during the current good times, as well. and our semiconductor distribution group,” said Michael Knight, senior Gallagher and others say there continues to be a growing need for vice president, TTI Business Development and TSG President. “The electronics expertise among engineering and buying organizations company culture, focus, and reputation for superior customer service large and small, particularly as customers seek to create increasingly and technical expertise complement TTI extremely well and are a sophisticated products or add Internet connectivity to non-traditional perfect fit for our specialty distribution model.” applications. Gallagher points to transportation, medical, and 04 September 2018 • www.electronics-sourcing.com Sager ESNA 130 Anniversary 2018.qxp_Layout 1 1/8/18 12:13 PM Page 1 It All Started in 1887 as a Small Boston Storefront Selling Speaking Tubes. Over 130 years later, Sager Electronics has grown into a leading North American distributor of interconnect, power and electromechanical electronic components. Acquired in 2012 by TTI, Inc., a Berkshire Hathaway, Inc. company, Sager continues to operate with the same dedication to its core values – integrity, service and adaptability. Established 1887 OVER 130 Years of Distributing Confidence® © 2018 Sager Electronics, 19 Leona Drive, Middleborough, MA 02346 • 1.800.724.3780 • www.sager.com Cool solutions to heated problems Sager Electronics has announced the addition of Bergquist to its thermal management solution set. The brand sits within Henkel’s portfolio of thermal material solutions. N Henkel’s director of channel sales ES News Americas, Bill Nulf, said: “In Sager Electronics we saw a unique opportunity to work with a distributor with a technical sales force focused on thermal management. Through its commitment to meeting customers’ design- intensive thermal requirements, we are Display support enhanced confident Sager will create new demand and for US purchasers new customers
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