If the supply chain psychiatrist were to run a word association test, the expected answer to associate with the word registered would be screwed! While this may sound harsh, many OEMs are unknowingly caught in a registration system that has long-term consequences for materials cost. Registration is a process, used by manufacturers, which rewards a […]
Registered & Screwed Read More »
This blog is for my readers in procurement with home blood pressure gauges. Warning: do not act on this blog if you have high blood pressure or have failed your anger management class! Select a day when your blood pressure is normal and you are in particularly good spirits. Do the following three things: Ask
How to Keep Your Procurement Blood Pressure in Check Read More »
Lytica Inc. offers our customers an M&A Synergy Savings report. For us, this is an interesting report because it allows us to observe in detail the purchasing effectiveness of two companies that have operated independently. For our customers on an acquisition path, this is a very important and informative report. Synergy savings are the purchasing
A better Path to Purchasing Cost Reduction Read More »
Last month I made a presentation to the IEEE Consumer Electronics Group in San Jose, CA. I asked this group of engineers a very important question. It was important because of the implications that designer choices have on the supply chain. I started with my left hand holding the top of a slinky and my
Supply Chain Structure Should Not Baffle Electronics Design Engineers Read More »
In putting together the slides for a technical review, I realized that two thirds of the staff at Lytica have technical degrees; mostly electrical engineering but also computer science, mathematics and related fields. While not a total surprise, it is unusual to have this technical depth in a supply chain company and it is also
5 Areas Engineers Impact Procurement Read More »
I am going to share how some customers are using Lytica tools to save money; big money.  If you buy or sell electronic components, you need our tools. Anyone requesting or receiving quotes for components today needs Component Cost Estimator (CCE). Clients are using CCE to verify quotes when received. It is fast (analysis takes about
Price Negotiation: Don’t Walk in Blindfolded Read More »
Opportunity for cost reduction exists in all companies. Lytica’s analytic tools were conceived to focus on cost reduction for commercial component purchases but are also proving effective in reducing overhead activity associated with their cost reduction. Our customers are finding that they can significantly reduce the amount of activity required to get significant savings by
Cost Reduction Doesn’t Have to Be Painful Read More »
It stands to reason that, within a set of components, some would have better and others worse than a sweet-spot price. “Sweet-spot” here means an appropriate, fair-market price level for the purchaser. If you normalized the sweet-spot prices so that different components could be compared, you would expect a distribution showing variance around that value.
Everyone Has Some Bad Electronic Component Pricing Read More »
Having the world’s largest independent database of current electronic component pricing gives me a unique perspective on pricing. Having developed the prediction algorithms used inFreebenchmarking.com and Component Cost Estimator — applications that accurately predict what individual companies should be paying for components — I am happy to see my customers saving millions of dollars by
5 Ways to Reduce Component Costs Read More »
Maybe I’m fixated on cost and competitiveness, but over Christmas, two things happened that drove me to ponder these themes. The first is that I was given a Boxee Box as a gift; the second is a technology, entertainment, and design (TED) lecture that I heard via Boxee by an incredible 19-year-old woman named Eva
Why I Am Fixated on Cost & Competitiveness Read More »
