Optimizing the Online Sourcing and similar-/ product replacement search
These are unique times in the history of supply chain management, the crunch in time to market is clear and visible, but it does not necessarily relate to overall supply And guess what!? Switching costs and supplier assessment is a process of the past.
What started as tradeshow booths cancelling, stopped business travel, felt like a small bump on sales agents road, that might easily be recovered in long term, as an insignificant reduction to sales. But as time moves forward and the epidemic is becoming more global it is obvious that shortages in supply are inevitable.
Apple was one of the first to admit and foresee production disruption, but it's definitely not the only one that takes into account lead time as a main cause for awaiting demand in the market. Risk management best practices are put to test and evangelists are able to easily claim a significant winto the claim that risk management is the key just in time methodologies.
More importantly, this crunch time will not necessarily mean material costs sharply rise, on the contrary to what felt deeply 3 years ago. If 3 years ago we witnessed market over demand as consumer confidence peaked, while inventories were still relatively dry from the financial crisis, this led to increased prices dramatically in the electronic components sourcing market.
But at this period of Covid 19 virus grabbing world supply chains in a shock, there is still significant supply out there. Where companies are willing to absorb short term costs and wish to secure future growth.
As engineers sit at home, testing and measurement facilities sit idle, the cost of a replacement is mounting because of disruption to day to day business conduct. We are receiving first clear signs that a manufacturer switching and shifting demand to alternative sources will not be subject to major price increase as suppliers wish to remain active and cut on sunk costs related to disruption in sales, cancelled trade shows etc. Finding new clients now is gold, especially if they come free with an online platform replacing the B2B salesman.
The issue is lead time, starting mainly in the design phase, so transfer between suppliers and securing your continuous flow of materials can dramatically deliver superior results, this is why we at SourcingBot try to compare parts based on real physical lab measured data, so switching costs go down to zero. We conduct enough tests to make sure our numbers are accurate enough.
Offering from one hand all necessary data online, combining it with real live lab measurements and automatic similar-/product replacement recommendations for decent 2nd sourcing is so far unique in the industry.