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Quick Chat: 3 Tools to Help Electronics Buyers Succeed in 2024

Jan. 15, 2024
This episode covers a short list of must-have tools for electronics buyers to help alleviate the challenges faced in a constantly changing industry.

This Quick Chat episode covers a short list of must-have tools for electronics buyers to help alleviate the challenges faced in a constantly changing industry.

Reflecting on the last few years, 2020, 2021 and 2022 cumulatively formed an “unfortunate trio” encompassing the COVID-19 pandemic, political instability, environmental disasters, shocks in the energy market and trade tensions between major markets. And 2023 was similarly overshadowed by a series of concerns, including a downward adjustment in global economic growth expectations.

One of the major challenges this past year was the weakness in consumer demand, especially in the electronic products sector. This, in turn, led to a dip in consumer confidence that subsequently impacted the entire supply chain. We’ve also witnessed high demand from major companies and end markets, particularly in areas such as smartphones, personal computers and data centers.

For electronic components buyers, the decline in demand is causing an accumulation of inventory, as these components play a crucial role in electronic products. Furthermore, the decrease in demand is intensifying competition among enterprises. In order to stimulate sales, companies are compelled to reduce prices, thereby affecting overall profitability.

3 Must-Haves for Electronics Buyers in 2024

Now in 2024, global businesses are managing ongoing transformations and dealing with a variety of challenges. The softening of consumer demand in 2023, for example, has led buyers to focus more on enhancing business resilience, optimizing operational efficiency and swiftly adapting to changes in market demands amid uncertainty.

In this challenging moment, buyers have more urgent expectations for key needs and innovations.

Here are three tools and services that all electronics buyers can use to their advantage as we move into 2024:

1. Global Supply Chain Visualization and Crisis Response Tools

In recent years, increased uncertainty in the global supply chain necessitates that buyers have a better understanding and management of risks to ensure business stability. Global electronics suppliers can provide supply chain management tools and consulting services to help buyers establish resilient supply chains, thereby reducing risks.

2. Component Supply Chain Optimization Services

The electronic component supply chain is complex. As such, buyers need more effective ways to manage and optimize these supply networks. Buyers should seek out electronic component suppliers that offer services like inventory management, order processing and supplier relationship management. These value-added services can help buyers reduce costs, enhance delivery efficiency and ensure the smooth operation of the supply chain.

3. Enhanced Data Security and Privacy Protection Tools

With further globalization and the deepening of data-driven processes, the new year is sure to bring even more technological innovations. Data security remains one of the “newer” challenges that buyers need to address using powerful tools that protect both business and customer data.

This is not an exhaustive list of tools and services that can alleviate the challenges that buyers are currently facing, but it’s a great starting point for electronics buyers as they begin purchasing in the new year. The bottom line is that both distributors and downstream electronic component buyers will have to continue adjusting their strategies in order to address a constantly changing industry.

About the Author

Tyler Fussner | Managing Editor - Community Manager | Supply Chain Connect

Tyler Fussner is Managing Editor - Community Manager at Supply Chain Connect, part of the Design & Engineering Group at Endeavor Business Media.

Previously, Fussner served as the Associate Editor for Fleet Maintenance magazine. As part of Endeavor's Commercial Vehicle Group, his work has been published in FleetOwner magazine, as well as Bulk TransporterRefrigerated Transporter, and Trailer-Body Builders.

Fussner's May 2022 print feature 'The dawn of hydrogen trucks' was named the best single technology article in B2B by the judges of the 2022 Folio: Eddie and Ozzie Awards. Fussner was also awarded Silver in the Technical Article category for the Trade Association Business Publications International (TABPI) 2021 Tabbie Awards.

Fussner previously served as Assistant Editor for Endeavor's Transportation Group on the PTEN, Professional Distributor, and VehicleServicePros.com brands.

Fussner studied professional writing and publishing at the University of Wisconsin-Whitewater. He has experience in shop operations, is a Michelin Certified Tire Technician, and a Michelin Certified Tire Salesperson.

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