Sourcing components for your high-reliability applications presents a challenge even in the best times. When faced with hard-to-find components, indirect sources can help relieve pressure. But first, you have to know where to look.
High-reliability verticals often approach indirect markets with caution, and for good reason: there’s real danger in encountering overmatched players who are not equipped to deal with stringent regulatory and flow-down requirements. There are also opportunistic players out there, sourcing materials in an opaque fashion that may cause concerns about remarketed or harvested parts.
But don’t let the risks at the margins obscure this fact: independent electronic distributors are a critical part of a functioning market.
The services offered by ECMs and franchises flow in only one direction — sales. Independent distributors help the flow of hard-to-find components in all directions, thus rebalancing the market. Theoretically, if you had the resources, you could perform the same functions an independent distributor provides in-house. You’d need systems in place to ensure the safety and traceability of your components, and access to the marketplace over long periods of time to meet lifespan challenges.
But if you could outsource global sourcing of a secure product with high-reliability supply chain providence and relieve surplus, all while planning for obsolescence, you’d tap into the best the independent market has to offer.
Three ways an independent distributor can boost your sourcing success
1. Identifying safe sources while accessing global channels for hard-to-find components
Beyond simply sourcing the components, you need to know that the supply chain meets the spec. In the high-reliability verticals, it is critical to know your supplier and the pains they go through to insulate the flow-down against that risk. An independent distributor should align with vendors who they verify and continuously screen for compliance. They should be capable of managing the security of the product, but also tolerating the rigor of maintaining a secured supply chain. Ongoing vendor management by a distributor indicates a healthy engagement with the supply chain.
Independent distributors should offer transparent interactions throughout their screening process. Opportunities to audit the screening process present a chance not only for you to evaluate their safety measures, but also potentially improve or tailor their process to your specific needs.
2. Planning for inevitable EOL and obsolescence challenges
With hard-to-find components in high-reliability verticals, you’re virtually guaranteed to encounter obsolescence and end-of-life challenges. We are still seeing that the market is short of capacity, and another wave is coming as suppliers trim product lines in response to demand. This isn’t a friendly trend for the high-reliability verticals.
There are many ways to approach end-of-life and obsolescence challenges. Independent distributors can offer support, and you’ll want to tailor programs to meet your specific needs. Forecasting your needs for end-of-life parts aids in procuring the right quantity of scarce components when you need them. Knowing your organizational biases and understanding where you need support is a solid way to stay on top of EOL and obsolescence.
3. Balancing inventory
Beyond the non-negotiables of safety and supply chain security for components coming in, the flip side of successful sourcing requires knowing when and how to let go of product. You’ll likely encounter the need to shed inventory at some point, but your standard suppliers only work in one direction: they will sell to you, but won’t help you with surplus. If the part is not in inventory they can’t help you, full stop. An independent distributor can connect you with maximum return for your surplus while also reaching the supply of hard-to-find components you need.
Sourcing hard-to-find components in high-reliability verticals presents many challenges. Independent distributors stand to bridge the gap between franchises and the unknown, providing safe, secure sourcing while broadening your chance of supply and dealing with surplus.