1. What has been the impact of the supply chain shortages and other pandemic-related issues on COMPANY NAME’S revenue growth in 2021?
We had a record year in 2021 due in large part to the overall semiconductor shortages throughout most of the industry. At Mouser, our inventory position continues to help set us apart. Customers know we are a well-resourced, authorized distributor with the widest selection of products in the world.
Over the last year, we’ve had more than 620,000 unique customers placing small to medium-sized orders; and with such a wide product offering, we don’t experience big dips that some other distributors might experience.
Even with our strong inventory position, we are not immune to extended lead times and allocation on some products. We continue to closely watch our part numbers that are stocked out and are working with manufacturers to replenish those part numbers as quickly as possible.
Additionally, the return of the full workforce after the pandemic-induced lockdowns has been slow, and we face a challenge given our growth and staffing needs. We continue to look for ways to work smarter and improve in this area.
2. What part of the business was most impacted by these challenges in 2021?
I’d say the biggest challenge has been keeping our inventory at the right levels because some manufacturers have been quoting lead times of 50-plus weeks, particularly on the most sought-after products. We have been making tremendous efforts to accurately forecast and stock the components we need for customers. Our wide variety of products and manufacturers definitely helps insulate us, as we are able to suggest alternative products to customers if needed.
Inflationary pressures have been another issue, and some manufacturers have been raising prices due to factors such as rising raw material and transport costs. We are working to mitigate price increases and continually communicate with our logistics partners to provide shipping and freight at the best prices possible for our customers. Industry prices should start to even out as manufacturing capacities increase.
3.How bullish/bearish are you for COMPANY NAME’S business in 2022, and why?
Our world runs on electronic components. We have customers placing orders well into 2023. The pandemic forced the slowdown of the supply chain, yet the industry will still grow at all-time-high rates this year and will come out of the pandemic much stronger than before. The digital revolution is still in full effect, whether it’s the expansion of IoT, 5G being deployed globally, or more technology in cars; the demand for semiconductors and electronic components will continue to grow.
We are optimistic and poised to handle the growth ahead, and we continue to invest in our distribution capabilities in our Global Distribution Center in Texas, installing more Vertical Lift Modules (VLMs) to have the largest installation in the world with 120 VLMs total. These high-tech machines are like giant vertical filing cabinets, complete with shelves and an automated elevator to bring the components to the employee’s workstation, saving time and space. These, along with other new automated machinery, are designed to help get orders processed, picked, packed and shipped in a very short amount of time, allowing us to continue to service growing global demand with accuracy and speed.
4. What plans does COMPANY NAME have for enhancing the digital marketplace in 2022, and why?
The pandemic has forced the acceleration of digital revolution, not just in terms of engineers but also consumers at large. As an online electronic component distributor, this fits our strengths, and we are ahead of the curve with our industry-leading website.
Of course, there are other online distributors, but they often lack the inventory. We specialize in the newest products and offer the widest range of inventory, with the quantities to meet market needs. Engineers and buyers are looking for an advantage that can help them compete. Inventory and availability of genuine stock has become even more critical in a world where supply delays can run into weeks or even months.
Mouser’s online model is supported by a top-notch Technical Resource Center that provides valuable technical content for engineers and buyers, such as eBooks, application notes, blogs, videos, product microsites with datasheets and much more, all accessible online.
5. Which end market segments (automotive, aviation, communications, computing, industrial, military, etc.) do you think will provide the strongest growth opportunities in 2022 and beyond?
The industry outlook shows robust demand for components, particularly in the data, communication and transportation sectors. Electrification and digitalization of the automotive platform is a growing area where we will see incredible innovation over the next few years with all forms of transportation. Also, with IoT, 5G and wearables driving the way, the industrial and medical sectors are also expected to present solid growth opportunities ahead.
The biggest challenge for our industry over the next decade will be keeping up with soaring demand.
