One thing the electronic components supply chain learned following this year’s earthquake and tsunami in Japan is the value of a good distribution network. Concerns about supply chain continuity early this year were exacerbated when the Japan tragedies struck in March, causing customers large and small to stock up on parts they needed most in anticipation of shortages.
Although companies in Japan were largely up and running within three months of the disaster, electronic components distributors say the situation is having a lingering supply chain effect in the form of a renewed focus on risk.
“The [Japan situation] just really sent everybody for a loop,” said TTI Inc.’s Michael Knight, senior vice president TTI Americas. “It had been a long time since we’d had a shock like that.”
Knight also said a resulting trend is that many OEMs are starting to look more closely at supply chain risk—specifically, the ability to get the products they need when they need them. And that’s a situation that bodes well for electronic components distributors.
“[It’s] good news for distribution because part of our value proposition is to mitigate risk in the supply chain and make sure the customer doesn’t [have a line go down] for want of a reel of resistors, for instance,” Knight added. “We saw a lot of people paying attention to that.”
Paul Andrews, President and CEO
Company Headquarters: Fort Worth, Texas
2011 Sales: $1.5 billion
Company website: http://www.ttiinc.com/page/home