December 2023 Newsletter

Welcome to the Procurement Roundup – your newsletter for all things procurement and electronic components, brought to you by Lytica, the world’s only provider of electronic component spend analytics and risk intelligence using real customer data. 

The U.S.-China Chip War: What it Means for You

EPS, November 20, 2023

Key Insights: 

• The U.S.-China chip war involves reciprocal restrictions on semiconductor-related trade, causing disruptions in global supply chains.
• Shortages and price hikes occur due to limited access to crucial materials like germanium and gallium, affecting semiconductor production globally.
• Mutual reliance suggests an eventual resolution, but short-term disruptions may intensify before a sustainable agreement is reached.

Why 2024 Will be Pivotal for AI in Procurement

Procurement Magazine, November 20, 2023

Key Insights:

• A survey of 500 senior executives in the US and UK indicates that 2024 will be ‘pivotal’ in establishing which uses of AI will produce the greatest impact and financial benefit for business.
• AI’s role in procurement promises significant benefits, such as streamlined operations, increased efficiency, cost savings, and improved decision-making through data-driven insights and strategic planning.

Missed our recent announcements or market report? Stay up-to-date about the latest developments and exciting product updates from Lytica!

State of the Electronic Components Market

October 2023 

We analyzed over $425 billion in electronics spend in order to deliver curated insights into the electronic component market in October 2023. Highlights include:

• Electronic component pricing fell by 3.6%, following a monthly decline in September of 4.1%.
• Lead times improved by 1.2% Month-to-Month on average, following a 4.2% drop in September.
• Component availability continued to moderate, with 80% of all tracked electronic components available.

The Procurement Pendulum & What to Do About It

August 2023

Procurement strategies oscillate between prioritizing cost reduction and emphasizing value creation. However, an excessive focus on cost-cutting can detrimentally impact quality and strain relationships with suppliers, while an overemphasis on value creation may result in overspending. The key lies in adopting a balanced approach that integrates cost-effective practices with value-driven decision-making. Achieving this balance involves leveraging data insights, fostering collaborative relationships with suppliers, and embracing innovation to optimize procurement strategies.

Lytica Inc. Named as One of the 2023 ProcureTech100

November 13, 2023

Created by ProcureTech, in association with Kearney, the ProcureTech100 are the definitive 100 pioneering digital procurement solutions on the planet. A panel of over 60 procurement leaders, technology experts, and B2B investors helped choose Lytica from over 4,000 digital procurement solutions, recognizing us as one of the dynamic, future-focused solutions that are supercharging procurement and the enterprise. Lytica was recognized as a pioneer in sourcing and cost management.

Get ahead in the supply chain and electronic components realm with expert insights on industry trends and strategies to stand out from competitors.

• Tip #1 – 🌎 Diversify Your Suppliers: Prioritize diversification in your sourcing strategy by collaborating with selected qualified manufacturers from different regions. This mitigates the risk of single points of failure in your supply chain.
• Tip #2 – 💼 Work with a Minimum of Three Suppliers: Aim for a minimum of three suppliers to bolster resilience and flexibility in your supply chain. Having multiple options ensures better adaptability to fluctuations.
• Tip #3 – ✍️ Build Strong Supplier Relationships: Establish strong relationships with your suppliers. This signals your commitment to partnership, aiding in navigating supply chain fluctuations more effectively.

Discover more about Lytica’s solutions or request a demo by

visiting our website!