Overhead Costs Archives

How Top Procurement Teams are Achieving Best-In-Class Spend Results in 2024 and Beyond

How Top Procurement Teams are Achieving Best-In-Class Spend Results in 2024 and Beyond A shift is happening in the electronic component market. An optimistic return to normalcy after the worst of the COVID-19 pandemic has caused electronics manufacturers to change their procurement strategies once again. But what are the top procurement minds doing today to […]

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Sustainability and “Green Sourcing” – Can It Be Done Without Adding Cost and Complexity?

Sustainability and “Green Sourcing” – Can It Be Done Without Adding Cost and Complexity? Sustainable procurement — or “green sourcing,” as it’s often called — has increasingly become a top priority for electronics manufacturers across the globe. The goal of green sourcing is to reduce the environmental impact of one’s supply chain by purchasing recycled

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Not Receiving Your Ideal Price From Suppliers? Check Your Business Terms and Conditions

Not Receiving Your Ideal Price From Suppliers? Check Your Business Terms and Conditions The relationships between businesses and their suppliers (also referred to as vendors) is a complicated one, and one which we’ve discussed before. While in the past, we’ve explored how factors such as market changes, environmental issues, and economic waves can affect how

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Optimizing Allocation Strategy for Electronic Component Procurement

An effective allocation strategy for electronic component procurement is critical in today’s fast-paced and constantly evolving market. Outdated procurement methods often lead to a range of issues, such as inflated component prices, compromised quality, and intricate inventory handling. On the flip side of the coin, an efficient strategy helps organizations build a more resilient supply

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The Genesis of “Bradley’s Law”

A company should expect to pay for a specific electronic device – a price commensurate with their Competitiveness within that particular commodity. This Competitiveness is the measure of how the supply chain sees that company. Ken Bradley, Founder & CTO Lytica Inc. When Ken Bradley founded Lytica in 2005 as a consultancy practice, his primary

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Manufacturing Sector- The Growth Engine of the Economy

GDP dynamics – An important factor for developing supply chain strategies Manufacturing sector has been the growth engine of the global economy for the better part of the last two centuries. The transition from an agrarian to manufacturing economy is still an important indicator of growth, prosperity and rise in living standards for a country.

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Will Electronic Distributors Disappear? (Part2)

Is the current distribution model sustainable in the future? To answer this question, let us re-examine whether the three prerequisites mentioned in WILL ELECTRONIC COMPONENT DISTRIBUTORS DISAPPEAR? (PART 1) will continue to exist for the distribution businesses. Re-cap of the prerequisites: They keep inventory to provide materials to buyers faster than manufacturers do. It is costly

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Take the Embedded Inefficiencies Test

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 and product innovation. While working with this company, I am getting a refresher on Chinese

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6 Obstacles to Achieving Cost-Reduction Goals

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, we assist customers in implementing better pricing in their supply chain. From this vantage point

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Supply Chain Structure Should Not Baffle Electronics Design Engineers

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

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Overhead Costs

The Genesis of “Bradley’s Law”

Will Electronic Distributors Disappear? (Part2)

Take the Embedded Inefficiencies Test

6 Obstacles to Achieving Cost-Reduction Goals

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