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As resistors are a relatively mature market, purchasers are experiencing good buying conditions. Suppliers report that lead times range from two to eight weeks for the majority of discrete fixed resistors and resistor networks.
Because of the combination of a slowdown in the industry six months ago and increased production capacity, suppliers believe that lead times will remain stable in 1997.
In addition, there is still a "good deal of inventory to burn through in distribution this year," said Jack Simpson, director of sales and marketing at IRC Inc. of Boone, N.C.
Purchasers agree that availability has not been a problem. Judy Harrell, buyer for contract manufacturer AVEX Inc., Huntsville, Ala., said resistors are readily available, and she expects lead times will remain stable into 1997. For her, that means eliminating calls to distribution in search of hard-to-find supply.
Buyers are demanding that suppliers keep large inventories and maintain four- to five-week deliveries, said Jeffrey Rice, general sales manager at KOA Speer Electronics Inc., Bradford, Pa.
Lead times for both leaded and surface-mount resistors from KOA Speer are running at six to eight weeks. To meet customer demand, the company is driving toward four- to five-week deliveries by implementing an internal just-in-time system for purchasing its own materials, Rice said.
The stability of the resistor market has led purchasers to concentrate on buying strategies designed to reduce costs and lead times.
By forming strategic partnerships with their suppliers and using tools such as electronic data interchange, purchasers have managed to shrink lead times even further.
Lead times range between two and six weeks, said David Winnegge, manager of purchasing at Motorola Information Systems Group in Mansfield, Mass. By locking into partnership agreements with one or two preferred suppliers, "it ensures us two-week lead times," he said.
Setting up an EDI program with suppliers gives them visibility into Motorola's forecasts for better planning, said Winnegge, who buys chip resistors, resistor networks, and metal-film resistors for modems and networking products.
Another major benefit of the EDI program is a reduction in cycle time. Winnegge...