Strategies for Overcoming Component Shortages

Engineers and buyers must find ways to cope with ongoing component shortages. Below are 5 recommendations to help keep projects on time and on budget.

Maintain Relationships with Suppliers

Top-tier manufacturers provide most electronic components for PCBs. Working directly with these suppliers often is the best first step in securing necessary parts. Some assembly shops even have dedicated quoting teams on-site at suppliers, giving them priority access to available inventory. In addition to the direct manufacturers, several certified supply brokers specialize in sourcing hard-to-find or obsolete parts and components. Working closely with these brokers can also help in locating and purchasing what you need.

Hold Inventory

Another best practice during this time is to purchase and maintain an internal inventory of high-demand parts. Once you find a supplier, purchase enough parts to meet your demand over the next 12 months, especially passives. Most PCB assembly companies allow customers to supply their own parts and boards when necessary. By maintaining your own small inventory, you can avoid project delays and eliminate the frustrating process of part location each time you order a run.

Plan Ahead

The sooner buyers can begin looking for parts, the better. If designers have specific component requirements, it is advisable to send the Bill of Materials to buyers and your assembly partner as soon as possible. This way, they can begin locating and securing parts so they are ready to be placed once the design is verified and the order is ready to go.

Network with Other Designers

Most PCB assembly shops require customers to purchase additional parts to account for any losses that may occur, especially with smaller components such as 0603, 0402, and 0201-sized capacitors, resistors, and inductors. Small parts may get lost during mount/dismount from the feeder, and no one wants to put the project on hold while waiting on a replacement order of parts. But the extras don’t go to waste; we return unused parts with the customer’s completed order. As the English proverb states, “one man’s trash is another man’s treasure.” While you may not need the extra parts, they may just be what your colleague is trying to find for their project. Networking with other designers can be a valuable source of parts when supply is tight.

Be Open to Substitutions

This is probably the most important strategy for keeping your projects on time. If you can, be open to substituting any part that matches fit, form, and functionality. If that is not possible, at the very least, consider allowing part substitutions for passives only. This strategy provides confidence that the main components are purchased as designated but avoids all the other issues associated with locating passives. At Advanced Assembly, we identify alternates that have not been affected thus far by tight component demands. Part suppliers don’t always suggest substitutions, so it is often advantageous to go outside the originally designated manufacturer. By allowing possible alternates, customers lessen the impact of the part shortage and get their completed projects when they need them – even the next day.