Good component sourcing strategies can give companies a competitive advantage through cost savings, improved product quality, and timely production.

Factors that affect component sourcing

Authorized components distributors

It is advantageous for a PCB manufacturer to maintain long-term relationships with authorized component distributors, as this enables them to meet a wide range of customer needs. Purchasing through these authorized channels provides assurance of component quality, performance, and reliability.

Electronic component distributors play a key role in supply chain management by serving as a one-stop source for designers to procure parts directly, eliminating the need to purchase from multiple manufacturers (OEMs). These distributors carry components from various manufacturers and provide a user-friendly web interface for selecting and purchasing the necessary components.

An organization can significantly benefit from maintaining an approved vendor list to streamline its procurement process. This list ensures that vendors meet the company’s standards for quality, pricing, and delivery performance.

 

Component availability

Allocation occurs when the demand for electronic components surpasses manufacturing capacity, leading to a shortage. Allocated parts often have uncertain lead times and are prone to delays. The shortage is exacerbated by the growing use of electronics in automobiles and the increasing number of devices connected to the Internet of Things (IoT). During allocation, suppliers receive insufficient components from manufacturers, making it difficult to meet customer’s orders.

During board design, designers work with virtual representations of components, which can make it easy to overlook their actual physical availability. In some cases, components listed in the database may no longer be available, causing significant problems during assembly. Additionally, a key component may be nearing the end of its lifecycle. These challenges can be avoided or minimized by carefully selecting components during the design phase.

Procurement lead time

Component purchasing presents its own challenges, including coordinating with suppliers and managing potential delays, which can significantly impact procurement lead times. Shorter lead times help reduce costs, while longer ones increase both costs and effort. The overall time-to-market is directly influenced by the duration of the procurement process.

Avoiding obsolete parts

In the procurement process, designers must monitor products approaching end-of-life, meaning they are on the verge of becoming obsolete. Therefore, it is crucial to ensure that all components selected during the design phase will still be available when production begins.

7 way to mitigate PCB component shortages

• When choosing components during the schematic phase, ensure they are neither obsolete nor nearing end-of-life. This information can be found on both the manufacturer’s and distributor’s websites. Opt for newer components, check lead times, and prioritize reputable manufacturers.
• Once the schematics are finalized, create the Bill of Materials (BOM) and send it to your assembler for verification.
• Check the availability of components before proceeding with board assembly.
• Choose alternate components as backups, or choose parts that are common sizes (SOIC-8, SOT23, TSSOP), so if they do go out of stock, there is a chance of finding a substitute.
• Be open to adjusting part values when feasible.
• Consider making minor redesigns to achieve long-term fabrication goals.

Component sourcing is a crucial aspect of the circuit board manufacturing process and must be carried out with precision to prevent delays and reduce downtime.