October 2024 Newsletter

Welcome to another edition of 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. 

Using Data Analytics to Evaluate Component Suppliers

Key Insights: 

• Adopting a vendor-neutral procurement strategy and diversifying suppliers reduces the risk of supply disruptions and enhances negotiation leverage, allowing for better pricing and more flexible sourcing.

• Leveraging procurement technology and data analytics helps manufacturers evaluate supplier performance and optimize component sourcing, using real-time pricing and spend benchmarking to make more informed decisions.

• AI-powered tools can predict potential component shortages by monitoring external factors like weather or political events, enabling manufacturers to take preventive actions and optimize inventory.

How Procurement Can Optimize Vendor Allocation

Key Insights:

• Prioritizing a vendor-neutral strategy helps mitigate over-reliance on any single supplier, reducing supply chain risks and improving flexibility.
• A well-structured allocation strategy allows businesses to adapt quickly to market changes, like component shortages or price hikes.
• Building transparent, long-term partnerships with suppliers promotes trust and can lead to more stable pricing and availability.

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

We analyzed over $470 billion in electronics spend in order to deliver curated insights into the electronic component market in September 2024. Highlights include:

• September marks the 8th consecutive month of price declines in 2024, with a notable 3.14% decrease – the second largest drop this year.
• Lead times saw a slight increase of 0.26% following a 1.10% reduction in August.
• Electronic component availability remains high at 90% of all components being available.

Not Receiving Your Ideal Price From Suppliers? Check Out Our Latest Insights

Struggling to get the best price from your suppliers? It might be time to take a closer look at your business terms and conditions. This blog explores how optimizing your T&Cs can lead to more favorable pricing and stronger supplier relationships, giving your procurement strategy a competitive edge.

Lytica’s CEO Weighs In on Team-Building, AI & What’s Next for Procurement

Discover what’s next for procurement as Lytica’s CEO shares insights on team building, AI, and the evolving landscape of the industry. From leveraging artificial intelligence to drive smarter decision-making, to building a resilient and innovative procurement team, this blog dives deep into the future of procurement and how leaders can stay ahead of the curve.

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— Leverage Multi-Sourcing to Reduce Risk: Always aim to minimize single-source components in your supply chain. By diversifying your supplier base, you can quickly shift to alternative sources when faced with price hikes, quality issues, or shortages. This not only safeguards your production flow but also gives you stronger negotiation leverage to secure better pricing and terms.
  
• Tip #2 — Use Real-Time Data for Smarter Procurement: Incorporate real-time data analytics in your procurement process to benchmark your component costs against industry peers. Platforms like Lytica’s SupplyLens™ Pro can help identify cost-saving opportunities by comparing prices across multiple suppliers, ensuring that you’re not overpaying and are making data-driven decisions to stay competitive.

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

visiting our website!