The most trusted source of electronic component market intelligence
The most trusted source of electronic component market intelligence
I am surprised by the number of supply chain and purchasing professionals that use the terms Total Cost of Ownership (TCO) and Strategic Sourcing as excuse for inaction. Don’t misunderstand me. I believe in total cost and in business strategy.…
Over the 4 years since our firm launched our electronic component benchmarking tool set, we’ve concluded there are only 4 reasons that companies don’t benchmark their electronic component spend for competitiveness. Okay, there might only be two reasons? In their…
When we assess a new client’s spending against market pricing, we usually see a distribution of prices made up of overlapping distributions. The profile suggests three distributions. The first is a fairly tight distribution of good pricing positioned where half…
To companies focused on operational excellence, Lean Principles and the discipline of Benchmarking are considered two complimentary and indispensable tools toward achieving world class performance. Getting Lean is all about identifying and getting rid of waste, where waste is defined…
Not benchmarking your electronic component spend? If so, continue to disregard this critical diagnostic at your own risk. Quick. Name 1 inherently deflationary commodity. A commodity that, apart from the ebbs and flows due to supply and demand, always gets…
Since my company, Lytica Inc., introduced analytics based price prediction for electronic components, many major EMS and OEM companies have saved millions of dollars by applying this technology to their materials spending. As with the disruptive technologies described by Clayton…
I have been absent from the blog scene for the past few months because I have been working in China with an LED light bulb manufacturer. This is an exciting, fast-paced, high growth industry under intense pressure for cost improvement…
I was speaking with my Purchasing Manager last week; Patrick is a very capable and effective purchasing professional who has become addicted to Lytica’s fast track cost reduction methods. We discussed surprising things that we have seen in procurement which we…
Lytica Inc. tracks current prices paid – not distributor website prices – on about one million electronic components and uses this information to assess our clients’ spending competitiveness and estimate appropriate pricing for their worst price components. In many cases,…
As we approach the holiday season, I am writing my final blog of 2013 about humanity; that is humankind rather than kindness, compassion or charity. Humans make mistakes; on average, about 2% of the time. Fortunately, we have found ways…