Anglia’s CEO, Steve Rawlins, explains how the company is helping customers build a resilient, responsive supply chain ready to weather the next wave of shortages.
Given the current geopolitical tensions and tariff wars, this article’s headline may be a little difficult to swallow, especially if you are a component purchasing professional. Let me explain. We’re currently at the bottom of one of the periodic cycles that our industry goes through. That means there is plenty of availability of components and buyers can source most parts easily and at very competitive rates.
I’ve said before that I don’t believe we are in a recession: it’s just that the market is flooded with inventory due to greed on the behalf of manufacturers and the collapse (or non-arrival) of the electric vehicle business.
However, that is set to change very shortly, and I believe we will swing from feast to famine very quickly, without the usual period of relative stability. Why? First, because the excess inventory that built up in the years following COVID is now coming to an end, and second, because we are seeing temporary closures of fabs—ST, NXP amongst others.
I predict that by Q1 2026 we will see shortages and lead times starting to go out. I don’t see a new, disruptive product appearing on the scene any time soon that will unbalance the market further, but still, buyers need to be aware that they will need to stay very vigilant as the supply chain transitions again.
In the end, then, what can buyers do to protect themselves? The answer, is, of course, to build a resilient, flexible supply chain, which can respond quickly to changing requirements. And that is where I worry that the two big high service distributors and the three or four huge production fulfilment companies are unable to provide the services that SME customers need.
However, this is the rationale that has inspired so many of the policies that we have instigated at Anglia. For example, to ensure that customers have access to the latest, advanced components, our Ezysample service means customers in the UK and EU countries who are signed up to the Anglia Live program can receive sample quantities of every new product introduction (NPI) from Anglia’s franchise range free of charge.
With STMicroelectronics it goes even further: we are the only distributor in the world to stock every development board they offer. Samples are the lifeblood of designers, and samples of NPIs are even more vital as they let customers differentiate their products from competitors by using the latest technology.
We also still invest in FAEs and have a strong customer visit program jointly with our key franchises. Try getting one of the global corporates to visit you if your annual spend is less that £200,000. Yet many of our major customers started out with just a good idea—no track record and certainly no significant business ready to place. That’s real demand creation.
Then there is the recent program launched on 1 April this year, but certainly wasn’t an April Fools’ joke. Our customer loyalty program gives 90 days credit, plus rewards worth up to £2,500.
Of course, everything Anglia does is underpinned by its commitment to hold stock—something that the big corporates can’t or won’t do. Through this policy and our innovative programs, we are helping to build a resilient supply chain, no matter what challenges economic conditions or global political shenanigans throw up.
