Tag: Electronic Components

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Managing USD $50 Million in Spend for an Electronic Components Manufacturer – A Strategic Sourcing Study

Overview of the Electronic Components Market

The world around us is constantly transforming, thanks to the rapid development of modern technologies. The rate of change and advancement in electronics is startling to be modest. If you look back a decade, you’ll notice how far we’ve come in terms of electronics making groundbreaking strides in various industries. In the midst of such rapid developments, maintaining profitability, market share, and leadership becomes a major concern for the manufacturers of electronic components.

To survive, companies in the electronic components market must be as flexible as they are quick.

However, just being flexible isn’t enough for companies looking to dethrone the current heavyweights in the market. The supply market today is extremely competitive, and to stay a step ahead, companies in the electronic components market must learn to adapt to uncertainties in demand and short product lifecycles. In addition, the emergence and acceptance of regulations and standards that compel companies to focus on Corporate Social Responsibility (CSR) request proposal will force companies to keep tabs on the amount of e-waste generated by them. 

The Business Challenge and Journey

Client background: A fortune 500 multinational corporation, the client is engaged in producing a multitude of products in the electronic components market. Headquartered in the United States, the company employs over 30,000 employees while providing services to customers in over 40 countries.  

  • Client issue: The largest challenge to overcome was ensuring that the correct hardware was purchased from the best quality source while still achieving the lowest price possible and guaranteeing the quickest delivery time.
  • Client journey: The client identified global suppliers by measuring the quality, price point, and delivery time of the part suppliers. They also implemented industry best practices across the supply chain to manage and provide: parts forecasting, contract administration, global fulfillment, small parts sourcing and other direct material procurement, product quality engineering, product returns, value product engineering, logistics, and program management.

Research methodology: To help the client in ensuring that the correct hardware was purchased from the best quality source while still achieving the lowest price possible, the strategic sourcing experts at SpendEdge devised an integrated research approach. The approach included primary research methodology coupled with qualitative and quantitative data collection methodologies. The experts also congregated information from a wide array of secondary sources such as paid, company presentations, industry forums, and industry database within the ICT industry space.


Key questions answered in this strategic sourcing engagement include:


The Results

The electronic components manufacturer managed USD $50 million in spend. Additionally, they delivered continual cost reduction from 2% to 10% annually and oversaw and managed over 30,000 part numbers.


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Spend Analysis Helps an Electronic Components Client Determine the Current State of Spend

Category Overview

Lately, the electronic components industry has been proliferating due to the continuous development of consumers, growing indispensability of electronics in the current digital era, and a similar increase in opportunities in the upstream supply chain. However, according to SpendEdge’s spend analysis experts, the massive cost of manufacturing the electronic components poses a significant challenge for the growth of this industry.

As a result of such predicaments, players in the electronic components industry have started adopting spend analysis solutions to determine the current state of spend and gain a stronger foothold in the market space. Additionally, the spend analysis solutions offered by SpendEdge also help players in the electronic components industry to assess and enhance management decision by devising cost-effective strategies.

The Procurement Pain Point and Insights Offered

A global electronic components manufacturer wanted to gain an in-depth understanding of their current supply chain structure. Additionally, the electronics components client wanted to evaluate the risks and profitability associated with the supply chain. Furthermore, the electronic components manufacturer wanted to gain recommendations and insights on their spend pattern to achieve significant cost savings.request free proposal

To cater to the precise category requirements of the client, the spend analysis experts at SpendEdge carried out an in-depth two-step research methodology that involved primary and secondary research coupled with qualitative and quantitative data collection procedures to address the client’s specific business problems. During the course of this spend analysis study, the electronic components client gained insights into the ways to reduce overall procurement costs and improve their process efficiency across the supply chain. This engagement also helped the client compute and restrain supply chain risks through a chain vulnerability map.

Fundamental questions answered in this spend analysis study include

Electronic ComponentsBusiness Outcome

This spend analysis study helped the electronic components manufacturer determine their current state of spend and reduce maverick spends across the supply chain. Additionally, the client was also recommended ways to achieve significant amounts of cost savings.

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Supply Chain Risk Analysis Engagement for an Electronic Components Manufacturer

Category Overview

Over the past half-decade, the electronic components industry has been driven by the growing indispensability of electronics in this digital era; continuous development of consumer, automotive, industrial, and defense electronics; and a parallel increase in opportunities in the upstream supply chain. These trends fuel innovation and bring about technology developments in the design.

According to SpendEdge’s supply chain risk analysis specialists, it has been noted that companies are manipulating their internal and external resources to stay on par with the international standards. Additionally, issues such as compliance and traceability are increasing operational burdens. Since reducing risks in the supply chain is an effective way to cut costs, electronic components manufacturers across the globe have started opting for supply chain risk analysis solutions to improve profitability across the supply chain.

The Procurement Pain Point and Insights Offered

A leading electronic components manufacturer wanted to gain insights into their current supply chain structure and recent supply trends and forecasts. The electronics components manufacturer also wanted to assess the risks associated with supply and evaluate profitability across the supply chain. Additionally, the manufacturer also wanted recommendations to cut down on their major areas of spend across office locations through this supply chain risk analysis engagement.request free proposal

To cater to the specific category requirements of the client, the supply chain risk analysis specialists at SpendEdge followed an in-depth two-step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection procedures to address the client’s business issue. During the course of this supply chain risk analysis engagement, the client was able to enumerate and curtail supply chain risks through a chain vulnerability map. Additionally, the recommended business-process model assisted the client in identifying several categories of vulnerability. Furthermore, the supply chain risk analysis engagement helped the client create an overall impact on the global supply chain.

Key questions answered in this supply chain risk analysis engagement include

Risk Analysis

Business Outcome

The supply chain risk analysis engagement helped the client reduce risks across the supply chain and effectively cut down on costs. Additionally, the client also gained clear insights on their major areas of spend across office locations.

Want to know more about our supply chain risk analysis solutions?

request free proposal

Request free proposal