{"id":20800,"date":"2022-11-29T15:28:24","date_gmt":"2022-11-29T20:28:24","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=20800"},"modified":"2022-11-30T07:14:41","modified_gmt":"2022-11-30T12:14:41","slug":"is-now-the-right-time-to-buy-electronic-components-the-case-for-long-term-planning-and-forecasting","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/inventory-solutions\/is-now-the-right-time-to-buy-electronic-components-the-case-for-long-term-planning-and-forecasting\/","title":{"rendered":"Is Now the Right Time to Buy Electronic Components? The Case for Long-Term Planning and Forecasting"},"content":{"rendered":"

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As <\/b>long component lead times and prices<\/b><\/a> have begun waning for some, organizations are asking themselves: is now the right time to stock up for the future? <\/b><\/b><\/h2>\n

<\/b><\/h2>\n

Being prepared for the next period of instability will depend on the strategies you invest in and implement today.<\/p>\n

Building a long-term plan<\/b><\/b><\/b><\/h3>\n

<\/b><\/h3>\n

As we move further away from recent uncertainty in the global market, some have been able to breathe a sigh of relief as the electronics components sector stabilizes after a long period of unpredictability. However, wafer fab demand across most node sizes will still outstrip post pandemic wafer supply numbers and with ever evolving global challenges, it is easy to wonder, are these permanent supply chain shortages the \u201cnew normal?\u201d The short answer is that the current state will be our new normal for quite some time.\u00a0<\/span><\/p>\n

In the midst of an uncertain future, it is important to exercise what is in your control. Now is the time to reevaluate previous inventory management approaches and plan where to go from here. To be prepared for any supply change challenge you may face, consider employing these 5 long-term strategies:<\/span><\/b><\/p>\n

1. Demand Forecasting<\/i><\/b><\/h4>\n

In supply chain management, <\/span>demand forecasting<\/span><\/a> refers to the process of predicting market demand for materials to satisfy customer demand without creating a surplus (which is both costly and wasteful). There are <\/span>two methods of forecasting<\/span><\/a> inventory: qualitative and quantitative. <\/span>Qualitative forecasting<\/span><\/a> relies on subjective opinions and insights. <\/span>Quantitative forecasting<\/span><\/a>, on the other hand, leverages historical demand data to make inferences. No matter your individual preference, it is important that your organization finds a way to leverage both methods in your forecasting plans.<\/span>\u00a0<\/b><\/p>\n

<\/i><\/b><\/h4>\n

2. Strategic Inventory Purchasing Planning<\/i><\/b><\/h4>\n

An inventory purchasing plan<\/span> refers to the processes used to manage the supply chain flow of systems and products\u2014from manufacturing and <\/span>procurement<\/span><\/a> to warehousing and shipping. By combining a comprehensive view of historical purchasing data and forecasted components, your organization can better respond to current and future market needs. This allows you to mitigate the risks of future disruptions, plan for obsolescence, and manage component lifecycle stages.<\/span><\/p>\n

3. Inventory management automation\u00a0<\/i><\/b><\/h4>\n

Manual inventory management is not only time consuming\u2014it is also significantly more likely to fall prone to manual errors. To support your organization\u2019s strategic inventory purchasing plan, it is crucial to implement <\/span>automated inventory management <\/span><\/a>systems. Despite the investment required to switch over to automated systems and tools, it will <\/span>cut costs in the long run<\/span><\/a> through automatic reordering, enhanced warehouse organization, and better accounting.<\/span><\/p>\n

4. Real-time inventory insights\u00a0<\/i><\/b><\/h4>\n

Another tactic to bolster your strategic inventory purchasing plan is <\/span>real-time inventory insights<\/span><\/a>. Because inventory is constantly shifting with demand, it is essential to utilize the most up-to-date information and updates you have access to. Without this tactic, organizations can run the risk of customers placing orders for items that have since gone out of stock. One sure way to stay aware of changes in the electronics industry market is through <\/span>A2\u2019s monthly market update<\/span><\/a>.<\/span><\/p>\n

5. Setting accurate reorder points\u00a0<\/i><\/b><\/h4>\n

When your organization enacts comprehensive quantitative demand forecasting, you are given insight into previous unit demand. This enables you to choose the most likely points at which you\u2019ll need to reorder<\/a>. It also allows you to analyze lead times for production and warehouse receiving to stay aware of historical and current timelines for receiving.<\/span><\/p>\n

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Working with the right partner<\/b><\/h3>\n

The marriage of demand forecasting and strategic inventory purchasing can be combined in one point of attack \u2013 working with a reputable global distribution partner. But, when acting to secure a more proactive purchasing position, it is essential to invest in building a strong relationship with the <\/span>right <\/span><\/i>global distribution partner<\/span><\/a>.<\/span><\/p>\n

The benefits of a global distribution partner lay primarily in the wide range of industry- and part-specific <\/span>knowledge<\/a> they bring to your relationship. On the one hand, accurately forecasting demand requires an insider knowledge base capable of bolstering your ability to qualitatively and quantitatively forecast. On the other hand, strategic inventory purchasing necessitates the resources to effectively build a system <\/span>flexible enough<\/a> to react to the ebbs and flows of your supply chain. And with the promise of future destabilizing events, it will become necessary to work with a partner who can help guide you through changes in the market.<\/span><\/p>\n

Summary<\/span>: In order to ensure that your organization is capable of weathering our \u201cnew normal,\u201d now is the time to start building a robust long-term plan that leverages actionable insights. By following these strategies, and partnering with a proven sourcing expert, you will be equipped to withstand future fluctuations in the market.<\/span><\/span><\/p>\n

Read more:<\/b><\/p>\n

Putting the impacts of inflation on the global electronics supply chain into perspective<\/span><\/a><\/p>\n

Finding a sweet spot: the risks and rewards of sourcing electronic components globally<\/span><\/a><\/p>\n

World events continue to impact electronic components supply chains<\/span><\/a><\/p>\n<\/div>\n

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As long component lead times and prices have begun waning for some, organizations are asking themselves: is now the right time to stock up for the future? Being prepared for the next period of instability will depend on the strategies you invest in and implement today. Building a long-term plan As we move further away […]<\/p>\n","protected":false},"author":270,"featured_media":20810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[346],"tags":[52,104,232,54,197],"class_list":["post-20800","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory-solutions","tag-electronic-component","tag-electronic-components","tag-inventory-solutions","tag-supply-chain-management","tag-supply-chain-solutions"],"yoast_head":"\nIs Now the Right Time to Buy Electronic Components? 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