Electronic Component Distributors Are Invaluable in Uncertain Times

 August 17th, 2022 |   By Area51 Electronics |   0 Comments
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The last few years have been a bit of a kerfuffle for everyone. Normal has a new definition regarding a post-Covid-19 pandemic world. The pandemic isn’t even truly over. The complications born from the pandemic, likewise, are long-lasting, such as the global semiconductor chip shortage.

Shortages are not unheard of. Semiconductors, out of all electronic components, are prone to them. The reason is that semiconductors are advanced chips that are needed in most technologies. In 1994, new chip manufacturing technology required cleaner operating rooms than before. The batches of chips made during this time were often discarded due to manufacturing errors. In 2004, the strong push for mobile phones resulted in a lack of available chips.

In 2011, the earthquake in Japan that resulted in the Fukushima Nuclear Disaster caused a lack of NAND memory and displays. And in 2012, Qualcomm expected a shortage of Snapdragon chips from the lack of facilities to manufacture these chips.

None of these shortages compare to the 2020-2022 global chip shortages – one that has not yet stabilized and continues to be thrown into disruption by various world crises.

How can a company manage a shortage and come out prepared for future shortages in an unpredictable future?

It’s easy. You need a good electronic components distributor.

Electronic Components Distributors Are the Backbone of the Electronics Industry

Electronic component distributors work differently than original component manufacturers (OCMs) and original equipment manufacturers (OEMs). Distributors have a good position that OCMs and OEMs do not get to enjoy.

Electronic component distributors have access to markets and storage facilities that OEMs and OCMs do not. These distributors usually offer custom services, such as tech support, small quantity delivery, and scheduled or just-in-time deliveries. These services are often not offered by the original component manufacturer.

Cultivating and supporting strong relationships with distributors has been many OEMs saving grace during shortages.

Distributors also offer benefits in time and money saved with quality assurance and experience guaranteed. Buying from a distributor usually means buying from fewer suppliers with exact amounts of components, something OCMs don’t normally do. OCMs will deliver products in bulk or minimum amount deliveries. That can be costly to OEMs that need specific or small amounts.

Just-in-time deliveries are also options electronic component distributors offer. This is a huge advantage during times of crises and shortages as OCMs are usually overrun by OEMs looking to fill growing backlogs.

Electronic components distributors come in different shapes and sizes. It is important to find one that can meet all your custom needs with their solutions. The type of distributor that meets many custom requirements are authorized and independent distributors.

Independent and Authorized Distributors Offer Quality and Timeliness

Authorized and independent distributors often come jam-packed with a variety of benefits that few other distributors can offer. These electronic components distributors have access to authorized lines directly from the OCMs they work with. These components are shipped directly from the OCM to the customer, which assures authenticity and tracking.

Authorized and independent distributors also enjoy a diverse supply chain that independent distributors have. Diverse supply chains give distributors access to new and unique markets in order to obtain obsolete or hard-to-find components. In a survey done by the U.S. Department of Commerce, some OCMs had spent hours chasing leads on coveted supplies of chips only to lose it to a competitor or another industry altogether.

While some argue buying from independent distributors increases the risk of counterfeit components, there is a way to mitigate that possibility. Independent distributors, any distributor, should and do have certifications meant to keep purchasers safe from counterfeits.

These certifications, ISO 9001 and AS6081, have set requirements, practices, and/or methods to mitigate counterfeits. ISO9001 specifies quality management system requirements to meet customer and regulatory requirements. AS6081 supplies uniform requirements developed by the Society of Automotive Engineers (SAE) to control and mitigate fraudulent or counterfeit parts.

AS6081 is a military standard requirement and is used by OCMs in the defense and aerospace industries. Shortages make it much easier for counterfeits to slip into supply chains when desperation trumps security. Purchasing components from a distributor with these certifications means you’re getting quality components, without having to lift a finger.

Uncertain times make it easier to receive counterfeits over genuine components if you can manage to get them at all. An electronic component distributor that is authorized and independent means making it through shortages and having confidence that the part you receive is genuine.

Collaborative Advantage is the Key to Success

So, if you’re buying from an authorized and independent distributor, that’s good. Do you know what’s better? Purchasing from an authorized and independent distributor that practices having the collaborative advantage.

The idea behind collaborative advantage is working together with a potential partner to bring out the best in each other. This means working together to enhance each other’s strengths and cover their weaknesses. Area51 Electronics does that.

How do they do this? Area51 Electronics gives companies more opportunities to save time while being cost-effective by offering both distribution lines all in the same place. Area51 Electronics has over 150 authorized lines from OCMs with an even larger supply of products for buying flexibility with their independent portfolio.

Not to mention, Area51 Electronics has over 5 certifications that promise quality, authenticity, and counterfeit mitigation upheld to military-strict standards. Not only that, Area51 Electronics is one of the few distributors that are part of the Defense Logistics Agency’s Land and Maritime QSLD Program.

Who better to turn to right now in these tumultuous times, than a distributor that goes above and beyond to keep their partners safe. Trust Area51 Electronics to see you through this shortage and help you come out the other side stronger and more successful.

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