Ease the availability squeeze

Rebound Electronics’ CEO, Simon Thake

Rebound Electronics’ CEO, Simon Thake discusses the pandemic, reshoring and building a supply chain that can tolerate uncertain times.

Q) How has Rebound performed during the pandemic and has it impacted performance or deliveries?

Rebound Group maintained its high level of service to clients. Safety of our team was placed first and, whilst the majority have been working remotely since the beginning of March, they have continued working as hard as always. We are proud of the business units we have and their dedication to deliver never wavered. Naturally, there were supply chain problems. We kept clients informed of potential problems before they happen to mitigate issues before they arose.

Q) Rebound has witnessed strong growth over recent years, acquiring both Delta Impact and Easby Electronics. How do you envisage the electronics supply chain performing over the next 12-months and what benefits do Delta Impact and Easby Electronics provide to procurement professionals?

Since the pandemic stopped the way businesses traded literally overnight, affecting every business sector imaginable, we see businesses moving to a more localised supply chain with some manufacturing moving back inhouse where offshore manufacturing was the way to ensure competitiveness.

Local EMS businesses will be asked to ensure the supply chain is close, mitigating potential disruption caused by border closures, trade wars and political volatility. As a supply chain solutions provider, Delta is well placed to transition clients’ production locally, while providing the expertise to source components competitively and flexibility via supply solutions tailored to each client’s needs and finances.

Easby Electronics is going from strength-to-strength, adding major lines to its portfolio of products including the recent addition of Omron Industrial Automation. This compliments the existing range of component offerings, coupled with extended levels of design support, expanding the niche Easby has carved for itself over the past five-years. Easby is looking to expand in mainland Europe over coming months, starting in Germany. Both Delta and Easby have over 70-years’ combined experience in the component industry.

Q) Readers are reporting lead times increasing, with some components extremely hard to locate and source. How can Rebound help such buyers and what advice would you offer purchasing professionals?

Many products are suffering from extended lead times. This will continue, compounded by a sharp rise in demand once the new normal arrives and businesses move forward and start the local economies worldwide. Allocation will hit, and hit hard, as it has in every previous downturn.

Rebound has the scale and quality of service needed to ensure production does not stop. It offers 24/7 global support and is well placed to deliver available product, while also searching for hard to find products without compromising quality.

My advice for procurement specialists in times of restricted supply is to work with businesses like Rebound, businesses you can trust. Try to not scattergun requirements around the world, even if desperate. Work with people you trust and know can deliver without trauma. This also ensures pricing stays reasonable, albeit potentially market driven.

Q) How has the supply chain evolved over the last five-years and how do you see it developing over years to come?

Supply chains have become difficult for procurement specialists to navigate following the mergers and acquisitions of many component manufacturers over recent years. Less choice during the design-in process, plus contracting distribution is forcing customers to rely on one or two suppliers. While they offer great service, they have less movement on pricing, leaving customers exposed to potential increases, justified or not.

We also see less inventory available as distribution networks shrink, making product availability, especially in times of allocation, a nightmare. Until new manufacturers come through, and clients start using their products, the squeeze will be on the supply chain indefinitely.