Supply Chain Management in the Electronics Industry when Working Remotely

Remote electronics teams need a complete set of tools for supply chain management in the electronics industry.

COVID-19 and protests aside, the industrialized world is living through a unique period in human history. In 50 years, economics textbooks will use 2020 as an example of labor reallocation and the weakness of just-in-time supply chains. As a consequence, remote work has become more commonplace as part of supply chain management in the electronics industry. More electronics designers and managers are working on a freelance basis, and companies are trying to find creative ways to reduce their financial risk.

This need to reduce risk is understandable in the face of counterfeit components, rapid changes in supply chains, and the move to remote work across many industries. Just like technology has helped create the supply chain environment we live in today, it can help remote teams of electronics designers and procurement professionals better manage supply chain volatility. With the right set of collaboration tools and supply chain tools, electronics design teams can access the sourcing data they need to stay productive and ensure they can get products to their customers on schedule.

Sourcing Challenges in a Remote Environment

If you’re part of a design firm, OEM, or EMS company, you’ve probably been relying on the just-in-time supply chain for electronic and mechanical components for some time. Although the current supply chain model is intended to be efficient and predictable, electronics designers and manufacturers have always had to deal with volatility. The challenges around sourcing come in multiple forms:

• Component shortages. The current COVID-19 crisis has brought component shortages front and center, but component shortages have always been a problem. Companies then have to turn to resellers and unauthorized distributors to fill orders, or they may take the risk of working with brokers. 

• Counterfeits. I recently saw a post on Facebook that showed how a radial capacitor could be easily counterfeited by placing a small capacitor in a larger package. Turning to the grey market puts teams at risk of procuring faked components with lower ratings or completely different ratings. 

• Access to accurate data. Sourcing teams at design firms and manufacturers need access to accurate supply chain data, including lead times, prices, stocks, compliance, quality controls, and much more. 

For designers, the last point extends beyond component stocks, prices, and lead times. PCB designers primarily need CAD models for their components, especially at smaller design houses that do not have a librarian on staff. Designers also need access to lifecycle information, particularly if they want to avoid a future redesign to remove NRND components, thereby increasing product lifetime.

Supply chain management in the electronics industry is also about managing access to CAD models, datasheets, and lifecycle information for components.

Once everyone on the design and procurement teams go remote, there is a new set of challenges to solve. Some of these are related to design and sourcing tasks, while others simply relate to communication strategies. Procurement teams will likely find the transition to working remotely challenging at first. However, the right set of supply chain management tools and communication tools can help teams craft a collaborative strategy to streamline projects in this environment. There are two major challenges a new remote electronics design and sourcing team might encounter:

• Lack of easy access to design data. This is the same problem that hits remote design teams. Collaborative projects require instant input from multiple parties, and design data needs to be accessible alongside the procurement team to ensure sourceability. 

• Unclear workflows and expectations. Electronics sourcing and design teams shouldn’t lose track of communication and should have a well-defined workflow. The goal is to ensure designers don’t get too deep into a project without checking the components they select are in stock and in production. In some ways, the two groups need to be cross-functional, which is aided by mutual access to design data.

These types of communication blocks only get worse when your team does not have access to current sourcing information. Smaller companies may not have the resources needed to access an enterprise supply chain management solution that also provides component specifications, CAD models, and lifecycle status alongside sourcing data.

Get Comprehensive Component Data with the Right Search Engine

Any remote team should stay aligned by clearly communicating status updates and requests in regular online meetings. But without the right set of search features that aggregate data across multiple distributors and manufacturers, the entire sourcing process reduces to scanning distributor websites.

There are multiple search engines that can give you a look into component stocks from multiple distributors, each with different amounts of data and details on electrical specifications, sourcing information, and access to verified CAD files. A search engine can act as one part of a larger supply chain management ecosystem for remote electronics design and sourcing team. When your team uses a search engine like Octopart, everyone on your team can access to the following information:

• Critical sourcing data. Stocks, MOQs, lead times, and price breaks from multiple distributors can be viewed and compared in search results. 

• Verified CAD models. Choosing components with CAD models helps cut down design time as designers won’t need to create schematic symbols, footprints, or STEP models. 

• Lifecycle status. No one wants to do an extensive redesign if a component happens to go NRND or obsolete. The ability to see lifecycle status eliminates this risk. 

• Electrical and physical specifications. Comparing components is all about comparing specifications. When specifications from multiple components can be seen or filtered, designers can quickly narrow down to the exact components they need.

• Datasheets. For older or more specialized components, datasheets can be hard to find, even on the manufacturer’s website. Users need instant access to datasheets when selecting electronic components.

Whether your team is working remotely or clustered in an office, your team needs a full set of supply chain management tools that integrate data from a range of component sources. At Octopart, we give you visibility into the electronics supply chain to help you manage your risk and your procurement strategy. When you’re looking for components, try using the component search and filtration features from Octopart. Octopart can also integrate with your proprietary supply chain management system through an API. Take a look at our category pages to help you select the components you need.

Stay up-to-date with our latest articles by signing up for our newsletter.