Partner with Distributors to alleviate supply chain disruption

The power electronics industry has certainly experienced huge pressure in recent years, we have seen unprecedented supply chain issues affecting the entire industry, particularly around semiconductors. Every few years the power electronics industry experiences a huge surge in demand for components but this time round the disruption in supply chains has affected everything from raw materials right the way through to high tech semiconductors.

The semiconductor market is booming and both manufacturers and distributors are seeing a strong demand that is difficult to fulfil because of an exceptionally challenging supply chain.

Covid reduced capacity for raw material sources, manufacturing sites and logistics organisations. As raw materials became increasingly harder to obtain, manufacturers were seeing price increases which they had to pass on to customers.

Are supply chain issues still disrupting the power electronics industry?

The power electronics industry is still being disrupted by supply chain issues, historically it would be relatively normal to experience a 12-week lead time for a semiconductor component, however now some manufacturers are still quoting a lead time of up to one year on selected parts. However, with careful planning and forward ordering it is possible to secure the inventory you need.

As an industry we need to ensure we’re more flexible and agile with our operations, especially when it comes to supply chain and obsolescence management. Working closely with suppliers and customers to seek alternative solutions is really important, without compromising on quality where budgets may have been cut and delays in components start to have an effect.

What are the main negative impacts of the supply chain disruption?

The two main issues are that the industry becomes a seller’s market and some of the avenues with stock often charge over the odds for components which can have a negative impact on customers and their end application, budget constraints and the future lifecycle of the component. Often buyers will shop around or source an alternative modern-day replacement (if possible) which can impact the shelf life of the part that is being marked up. GD Rectifiers believes in doing right by its customers and component lifecycles, we constantly manage to avoid price increases to try and remain competitive and supportive to our customers.

Another major impact caused by the supply chain disruption is the increased activity found in the grey market with the reselling of components. Unfortunately, when demand is high this creates an opportunity for companies that buy and sell counterfeit parts. In a time where buyers cannot accept one year lead times they are forced to broaden their buying resources which can sometimes lead to them being miss-sold counterfeit parts without realising it.

What have been the major changes in supply chain processes?

The recent supply chain issues have highlighted the benefit to design engineers of designing parts that can be multi-sourced. Often with semiconductors its extremely difficult to design multiple parts from a wide range of manufacturers, it’s a time-consuming job on the off chance you would need to multi-source, however in times like these its extremely beneficial.

Is Covid still impacting the power electronic components industry?

Covid doesn’t appear to be impacting the industry however seasonal issues such as staff shortages, delayed deliveries and most importantly engineering skill gaps do impact the supply chain, as well as the continued demand for semiconductors for the EV market. Covid left a mark on the power electronics industry as with many other industries, highly skilled personnel left the industry and retrained or returned to their home country which has left a shortage in certain markets. Covid also highlighted just how over-dependent many countries were on China and the sheer volume of manufactured goods that are produced in that one country. We are now seeing a shift in the supply chain focus with manufacturers, buyers and procurement specialists all looking to broaden their sourcing options, having a more diversified supply chain strategy including a strong focus on sourcing components closer to home.

Alleviate Supply Chain Disruption

How can distributors help customers alleviate supply chain issues?

Distributors work with customers to plan and set expectations with customers and suppliers, helping exhaust all potential sourcing solutions and forecasting supply to help alleviate supply chain issues as much as possible. Distributors can assist customers with product selection and suggest alternative parts that are more readily available, reducing time to market and ensuring minimal disruption to a customer’s supply chain. We also recommend that customers source and operate as much as they can locally rather than relying too much on other countries which will help avoid further production and delivery delays as a result of Covid and raw material shortages.

With the UK continuing its road to recovery following the pandemic, the power electronics industry remains an integral part of the economy and is well placed to support a number of vibrant sectors which will require a strong manufacturing base at home to drive economic growth.

The industry is already showing encouraging signs that it can and will bounce back swiftly from the events of the last 18 months as economic conditions around the world begin to improve and demand for manufacturer’s’ goods grows stronger. Now is the time to work with your power electronics distributor to forecast and plan ahead, to help increase your productivity and improve any supply chain issues that might be affecting your customers or application now or in the months ahead.

Ways GD Rectifiers are working with their customers

GD Rectifiers are working closely with customers to alleviate supply chain issues by offering:

• Forecasting requirements
• Flexible purchasing solutions
• Dedicated technical support
• Sourcing alternative components from the same manufacturer
• Sourcing alternative components from other manufacturers

We are working with customers on forward planning and early scheduling to help reduce delays on projects and ensure business continuity. These customers are seeing little disruption to their supply chain thanks to their robust forward ordering and our flexible purchasing solutions.

GD Rectifiers remains fully committed to keeping the UK’s power electronics industry moving and is proud to be playing its part in helping new projects and technology gain momentum. We’re looking forward to supporting and finding solutions for our customers and building on the services we offer.

GD Rectifiers is a global manufacturer and distributor of power electronic components, heatsinks and power assemblies. As an authorised distributor for over 25 of the world’s leading power electronics brands, GD Rectifiers offers a broad range of power semiconductors, circuit protection devices, passive components, traction converters and subsystems, heatsinks and power assemblies. GD Rectifiers are carefully protecting their inventory position to support customers that partner with us in this unpredictable market. We work with customers so together we can prosper and avoid disruptions to their supply chain.

For further information on GD Rectifiers product range or how we can support your supply chain, please call our sales team on 01444 243 452 or email [email protected].