Finding needed electronic components can be difficult in times like these and when new businesses enter the industry buying up parts. Shortage markets occur numerous times - tariffs, new production needs and other events can impact availability of components.

This should not stop your business if you know how to find your needed electronic components and use some forward thinking. As the Electronic Components Industry Association notes, “nearly every industry utilizes electronic components and the supply chain for such components is globally interconnected and complex”.

The close down of Wuhan, China - one of the world’s leading location for component manufacturing - created a shortfall in supply and started the problems many people are experiencing right now. 

First, you need to adopt the Boy Scout moto - “Always Be Prepared”. Over buying your production needs is one way of having a stock of components to use during these times. And by buying in bulk you may also lower the price you pay per unit.

Leverage Relationships

Build relationships with your suppliers. Whether you go directly to the manufacturer or use an authorized distributor, developing a resource you can reach out to when things become critical is helpful. Distributors may be a better selection here, as manufacturers sell to thousands and rarely have quality support set up for more than their larger customers. Distributors also give you the ability to get components from various companies, saving you the time of keeping multiple connections for your needs.

Use Your Data

Being aware of your sales data is also another way to stay ahead of problems. Knowing how many units you sell over a given period of time helps to determine when to restock.  “(B)uild an even better ordering system that can stand up to supply chain shocks. The tools you’re using right now—vendor ordering agreements, ordering and purchasing using longer lead times—should be considered standard operating procedure. You can always adjust down, but if your system is already in place, you’re prepared for almost whatever comes your way,” Industry Week recommends.

Keep Track of the Industry

While events like the Covid-19 virus cannot be anticipated, knowing new innovations or products coming into your space or the industry, in general, can forewarn you that demand may gear up and cause delays of your orders. The electric and hybrid cars had a major impact on supplies of various components. If you had been aware of the growing popularity and increased demand for these vehicles you would have been able to make earlier orders to allow the increased delivery times.

Know Your Lead Times 

You know your sales data, now combine that with your suppliers average lead times. Most sites will give you a rough estimate of delivery times for your orders. OnlineComponents shows what is in stock and the delivery times of parts it has to order for you.

“Maybe you’re in OK shape, but if that’s the case, use this time to build an even better ordering system that can stand up to supply chain shocks. The tools you’re using right now—vendor ordering agreements, ordering and purchasing using longer lead times—should be considered standard operating procedure”. 

Find The Right Supplier

In some cases you may be able to use another brand of the same component. If you do some research you will find the suppliers that have problems with forecasting their own demands and can have longer delivery times. To avoid this find a distributor or manufacturer who has shown skilled forecasting and have ample inventory.

Beware

As a last caveat, beware of substandard components during times of shortages. Disreputable individuals may try to capitalize on this knowing companies will do anything not to stop production.