5 Different Suppliers that You can Buy Electronic Components from

As the electronics industry has grown and demand on supply chains has increased, Original Electronic Manufacturers (OEM) and Electronic Manufacturing Service (EMS) providers have had to rethink how they source components. Because of issues with extended lead times, part shortages and reliance on legacy parts, most manufacturers end up working with a combination of vendors to obtain all the parts they need throughout a product’s lifecycle. There are five main types of suppliers to buy electronic components from.?

Different suppliers offer distinctive benefits and value propositions. Below is a break-down of each type:

1. Factory Direct

When a company buys factory direct, they are buying right from an Original Component Manufacturer (OCM).When you buy electronic components this way, you are guaranteed authentic and genuine parts with full product traceability. Dealing with the manufacturer directly is generally preferred. However, a company’s spend levels usually have to be high to qualify as a direct customer.??

2. Authorized/ Franchised Distributor

These suppliers work directly with the OCM. When you buy electronic components through authorized or franchised distributors, there is a significantly lower risk of getting suspect parts because of the traceability. These suppliers also offer flexible scheduling and stocking packages, usually not matched by the factory unless the spend or volumes are worth the direct support. While the supply chain may extend a bit with this type of supplier, it provides more flexibility for the OEM and EMS providers since they are not tied to one source.?

3. Independent Distributor

Independent distributors usually have no affiliation to any particular brand or franchise and they source parts from the global market. If you need a part that’s gone into obsolescence, going through an independent distributor may be your only option besides redesigning. Additionally, this type of supplier assists in long lead time situations and with part shortages. Not all independent distributors are created equally. Buyers should take time to research and confirm that the independent distributor they have chosen to buy electronic components from is certified and has proper inspection and testing methods in place for counterfeit mitigation.??

4. Hybrid Distributor

Increasingly, some distributors have started to work as a hybrid.?Hybrid distributors can help you buy electronic components while providing independent distribution services and also having authorized or franchised line agreements.

5. Catalog Supplier

These suppliers usually have a variety of product lines in small batch quantities. They often don’t have a minimum order quantity (MOQ) so they can offer smaller, precise quantities of product and most boast next day delivery. To buy electronic components with this level of convenience usually comes at a premium so the unit price is often inflated.