Finding a Sweet Spot: The Risks and Rewards of Sourcing Electronic Components Globally

The global nature of the electronics industry can make procuring quality electronic components — at the right number and the right price — a considerable challenge. Strategic access to the right global distribution network provides a way to quickly get inventory from across the globe.

Here, we lay out a plan for smartly sourcing electronic components globally and give you guidelines for selecting a global sourcing partner you can trust.

Put simply, グローバル調達 gives you access to parts outside your domestic market. This decentralization can introduce some unique challenges while, at the same time, provide enormous benefits. Looking further afield for parts can add an additional layer of complexity to the logistics planning process and impact your manufacturing timeline. And, without extensive knowledge of the regional electronics market from which you are purchasing, it can be risky to buy parts from suppliers with whom you are unfamiliar. On the other hand, opening up your parts search to suppliers across the globe can introduce more competitive pricing and access to hard-to-find parts. The sweet spot, of course, is finding the parts you need when you need them — at a fair price with the highest quality guarantee.

Evaluating global sources

We know that global sourcing of electronic components is an important strategy in mitigating the negative impacts of changes to the supply chain. Global procurement extends to organizations the ability to maximize efficiency for product margins and organizational success as a whole. When done right, global sourcing reduces costs, increases strategy diversification, and raises product quality. But the key to this strategy is deciding what works for you: this means developing a strategy of risk-assessment that meets your specific needs. Here are some important factors to consider:

1. Logistical Analysis

One of the largest risks in global sourcing is largely avoidable: logistics. Although it is tempting to take the ease of global connections for granted, to do so exposes your organization to some amount of risk. For example, shipping costs have remained somewhat predictable over the past couple of years, but recently, inflation and geopolitical factors have started to impact these costs. It’s crucial that managers conduct a real and in-depth analysis of their various product sourcing strategies to understand the impact of delivery time from sourcing decisions. As we’ve seen from the Covid-19 pandemic, trade routes can be severely impacted by anything from political upheaval to viruses.

2. Geography and Geopolitics 

In order to predict costs and performance on a global scale, it is crucial to stay aware of global politics. Without this awareness, it will be nearly impossible to protect and preserve the global sourcing connections that make your business viable. For example, how does your organization predict or even respond to new trade restrictions and potentially compromised routes? There have been many organizations who have needed to adjust due to the conflict in Ukraine, which has severely impacted the availability of materials from noble gasses to metals. 

3. Sustainability 

More and more consumers and businesses are concerned with the environmental impacts of their purchases. This market factor, as well as evolving sustainability laws and regulations, makes it critical that companies worldwide consciously reflect upon their own sustainability practices. Factors to consider include: the carbon tax exerted on imports as well as International Maritime Organization’s (IMO) plan to cut greenhouse gas emissions.