Electronic component distributor, Anglia Components, has warned of a looming potential imbalance in the supply chain, where traditional lines may become blurred, leading to a lack of transparency and compromised independence.
Steve Rawlins, Anglia’s CEO, said: “Last week, the news sneaked out that one of the leading electronic component brokers had been bought by a major CEM, confirming rumours that had been floating about for months.
“This is concerning because it places too much buying power in the control of one organisation, leaving the supply chain at risk. If this were to become a trend, with other Tier 1 CEMs buying brokerage companies, it could easily result in artificial shortages and price hikes.”
Anglia is speaking from experience. 25 years ago, the company set up its own CEM operation, which was in Rawlins words ‘a disaster’ as customers were confused and worried by the potential conflict. The experiment was swiftly terminated.
The issue really centres on how increasingly blurred lines between manufacturing, distribution, and open-market sourcing affect company governance. Anglia believes in forging strong, three-way supply chain partnerships between component manufacturer, the customer and the distributor. “We operate with full transparency in the best interests of our customers”, concludes Rawlins.
Learn more www.anglia-live.com
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