Currently, most component procurement involves a lot of phone calls, and lengthy quote processes in which a hand typed quote is faxed to you with an expiration date to try to rush you into a decision. This process was acceptable in the past when products had longer life cycles, and visibility into inventory levels was not as critical.
Manual searching for components through catalogues and datasheets is no longer required. Online electronic component purchasing is becoming the new normal as more and more online purchasing platforms emerge, allowing companies to search for components in stock and view pricing online. Companies that are still manually searching for components are already missing out to their competitors who are utilising the purchasing online process.
Real-time Inventory Visibility Eliminates Guesswork
A key benefit of buying parts online is that you have immediate access to the information in your current inventory. Unlike traditional part sourcing where you would dial several distributors and wait for availability, online part sourcing gives you the information you need immediately. No more miscommunication due to a part arriving before you verified the information.
Currently we are spending a lot of time on production, and experiencing backorders and project delays.
As a user of online purchasing platforms for our website you can see live stock levels, lead times and prices whilst placing your order. This live information shows availability at our warehouse locations, whether products and components are in stock or on allocation, and when new stock is due to arrive. With this level of live information you can plan your requirements effectively to avoid the severe cost of lost time in manufacturing of £3000 per day.
In addition to information about what parts are available, many online sites also provide historical pricing, alternative and compatible parts, and life cycle status to help purchase managers determine if a part is dying before they put the part wrong. But once the part is ordered, information about current order status, delivery dates and invoice payment status still needs to be tracked by the purchase manager in their own procurement system.
Competitive Pricing Through Market Transparency
Online procurement platforms allow organisations to compare the prices and conditions on offer from suppliers in one system. By bringing multiple suppliers into one platform, natural price competition ensures the best price for the buyer.
Instead of getting quotes from individual distributors and waiting for them to get back to you, you can compare prices with suppliers all at once. Suppliers must ensure that their information is current to remain competitive in this environment. Viewing all of your prices from multiple suppliers in an organized side-by-side format allows for an immediate comparison of who has the best price and forces suppliers to remain competitive.
We have several Volume Pricing Tiers for Qik products based on total number of components purchased. Please refer to the Pricing page for details on these. For example, when purchasing larger quantities of Qik parts, the per unit price may actually decrease as the volume of parts purchased increases. This may result in savings per unit for increased volume which may offset the cost of purchasing a few extra parts.
Many platforms also offer spot pricing for excess inventory and surplus components. This can allow components to be purchased below market for prototyping or small production runs where normal distributor pricing is too cost prohibitive. A great Fusion electronic components shop brings deep inventory with very competitive prices to the table.
Accelerated Procurement Cycles
In a world going faster, there are fewer moments to act. Production timelines are getting shorter, online purchasing is cutting days down to minutes. Let us show you how automated quote, simplified order and integrated shipping capabilities of web-based sourcing tools can remove hours from your component-buying process.
However, procurement processes are also changing at a rapid pace and what used to be a printed purchase order sent in the post to be manually approved is now a streamlined online process through digital workflows and instantaneous approval.
Managing Emergency Sourcing. When a manufacturing company experiences a shortfall in production, online sourcing tools enable them to rapidly identify a supplier, determine delivery time, and place an expedited order.
Documentation and Compliance Benefits
With digital procurement, there are automatic documentation trails. Quotes, changes to orders and notifications of deliveries are recorded and saved for reference.
The documentation can be used for Auditing, Warranty claims and as evidence of supplier performance. Compliance is made simple by having the certificates of conformance, material declarations and traceability documentation in a digital format and not having to store boxes of paper copies.
Supplier Relationships Actually Improve
Contrary to what many of us like to say online procurement actually strengthens supplier relationships. Online procurement removes a lot of administrative hassle from the purchasing process freeing the sales team from a process that can add little value to the sale while at the same time giving both sides greater visibility into how they are performing.
Supplier and Buyer ratings can be provided for both their delivery performance (on time delivery rate, inventory / order accuracy) as well as their purchasing consistency and payment performance consistency.
Using traditional methods of sourcing component parts will place organisations at a disadvantage to those using online purchasing in terms of cost, delivery time and supply chain visibility. Online purchasing using a wealth of information in a transparent environment, delivering competitive pricing and fast delivery to meet tight deadlines is now an integral part of the electronics manufacturing supply chain.