Supplier Lead Time Trends – February 2020

By Logan Wamsley

One of the key features Partstat offers Part Search users and BOM Monitoring customers is access to its Big Data — more specifically, 50 billion data points of Big Data.

This data is comprised of over 56 million rows of inventory on 26 million unique parts compiled from thousands of authorized suppliers and component manufacturers. With such a pool of information at our disposal, our complex algorithms allow us to accurately predict when an electronic component, semiconductor, or computer product will go on allocation. This one-of-a-kind feature gives OEMs and contract manufacturers the ability to prepare their supply chains for any potential disruption that may occur. And, as the world’s largest electronic component search engine and marketplace, all necessary orders can be done right from their dashboard, which is free to use for all Part Search users with a Partstat account.

 

Below is an example of lead time data available to Part Search users and BOM Monitoring Customers at the holistic supplier level. To help us prepare for February’s market conditions, in this article, we discuss some of the trends seen up through the end of January 2020:

This month we saw some notable positive trends from a few suppliers, which implies a significant market improvement in overall supplier inventory levels. Most significant of these can be seen from Coilcraft, Inc., whose average lead times dramatically decreased from 23 weeks to 2 weeks between November and December 2019. Although Coilcraft’s average lead times modestly rose 4 weeks as they approached equilibrium with the market, these are healthy levels and still imply there is more than sufficient inventory to meet the needs of their customers.

A similar shift can be seen with Advanced Micro Devices (AMD), whose average lead times dropped in the month of November by 10 weeks and have remained relatively stable since. Although OEMs should never feel complacent, and even during times of market surplus should take measures to insulate themselves from disruption, these positive trends indicate that the market direction for the new year is very bright. They also point to a prime buying opportunity for OEMs, who can place orders for large quantities of inventory at possibly the shortest lead times 2020 will see. Partstat last time buys are a useful way to do this without sacrificing precious working capital.

Part Search users and Partstat BOM Monitoring customers are able to drill deeper by viewing trending information at the Manufacturer Part Number level. Below is a chart illustrating how BOM Monitoring customers have the ability to interact with trending charts to view historical price, quantity, and lead time data at the 1-month, 3-month, 6-month, year-to-date, and 1-year view. To interact with trending data on parts critical to your bills of material, start your 14-day BOM Monitoring free trial by clicking here to register for your free Partstat account and then start your trial.