Farnell’s regional sales director, Mathew Thorpe, explains how supply chain transparency builds customer confidence in the company’s ability to secure inventory
Although economic and geopolitical events continue to impact the industry, there are promising signs that 2023 will take an upward turn. From a supply chain standpoint, we expect to see continued improvement across in-stock inventory and product availability as manufacturers increase their production capacity while minimising disruptions to delivery schedules.
At Farnell, we have enhanced our in-stock range over the past 18-months to help reduce product lead times for our customers. Across the electronics industry, the passive market is stabilising. However, it’s likely lead times of some semiconductor products will remain inflated in the short-to-medium term.
Increasingly volatile market conditions have created new challenges for electronic equipment manufacturers and distributors seeking to combat price increases and other inflationary issues. For customers, the ability to build costs into their bill-of-materials before submitting quotations to end-customers is critical. By working with companies who offer consistent pricing structures, customers can significantly reduce associated risks that could create shortfalls in their own profitability.
Performance in the UK market remains strong. By offering complete transparency across Farnell’s entire supply chain, our customers are growing further confidence in our ability to secure the supply of inventory, enabling them to ramp up their research, design and production capabilities. We expect to see growth in the number of new-to-market products released within the next 12 to 18-months. Farnell will work closely with our customers and suppliers to stay abreast of emerging trends in 2023 and beyond.