Top Three Takeaways from the One-on-One Procurement Matchmaking Meetings at TAITRONICS 2019

The 45^th Taipei International Electronics Show began yesterday, with over 15,000 visitors in attendance. The show focuses on innovative trends in the electronic component, LED lighting, and industrial process industries. Smith’s Vice President of Global Purchasing, Todd Snow, had the opportunity to meet with many procurement specialists across various supply chain channels. These one-on-one sessions were designed to be quick, introductory meetings to discuss high-level business objectives and industry perspectives.

Here are a few of the main takeaways Todd noted during these sessions:

1. Developing cross-functional and multi-channel relationships helps build market expertise.

Legacy components going end-of-life (EOL) was one of the main causes of last year’s widespread MLCC shortage. Following the miniaturization trend, MLCC manufacturers began to allocate more capacity to smaller case-size parts. Customers in the automotive, industrial, and oil and gas sectors experienced severe MLCC supply constraints as a result. Smith’s Intelligent Distribution^TM model incorporates direct, open-market, and franchise sourcing. During last year’s MLCC shortage, our procurement team helped customers navigate shifting lead times and product availability with ease. Relying on a strong network of trusted suppliers helps Smith identify supply and demand trends in the market.

2. Utilizing a sophisticated supplier rating system (SRS) ensures the highest-quality components.

A qualified supplier base ensures that the correct product is sourced and that product authenticity is safeguarded. Suppliers should go through a formal selection process that is based on specific quality requirements and have the appropriate ISO certifications. Documentation via an internal rating system is one of the main standards for effective sourcing, especially during shortage situations.

3. Supplier consolidation offers great cost-savings opportunities.

“Helping our customers simplify their supply chains is one of the many ways Smith can provide value,” said Todd. “Extending our relationships to customers helps them meet their bottom lines and keeps their supply chains active. By working with a full-service partner like Smith, customers are able to streamline their purchasing procedures and meet sourcing goals.”

The one-on-one procurement matchmaking meetings at TAITRONICS 2019 gave Smith a unique inside perspective on global sourcing trends in the electronic component industry. These top three takeaways from Todd’s meetings offer insight into the best practices and qualifications that make a key difference when sourcing components.

Visit our Procurement page or reach out to [email protected] to learn how Smith can support your sourcing or other requirements.