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Covid-19 & Risk

Covid-19 & Risk

It seems like it never ends. MLCC and other component shortages from automotive market expansion in 2018, tariffs driving sourcing changes in 2019 and now, in 2020, Coronavirus taking us into completely uncharted waters. Despite some interesting environmental new (for some interesting NO2 pollution photos from the crisis, see https://www.visualcapitalist.com/coronavirus-lockdowns-emissions/), it’s not good at best and possible catastrophic for some. For others like on-line retailers there is a spike in overall demand which (15% to 30% growth) since Covid-19 which, despite panic buying, suggests real demand exists. I haven’t been blogging this year as I have been writing white papers and...


Representing Micheal E. Porter concept

Towards “20/20 vision” in 2020

It’s hard to believe, but already the third decade of this century is around the corner.  This certitude had me reflecting this week as I commuted to the optometrist. Most adults have an annual ritual of going to an optometrist for an eye exam. They emerge with a prescription for new lenses or, in some cases, reasons for laser eye surgery. Stated another way, they benchmark their vision against an established standard and take corrective action when anomalous outcomes develop. They aspire to achieve 20/20 vision. They want a clear focus on the world around them. This makes good sense. In...


New Standard Lytica Commodity Names

New Standard Lytica Commodity Names

This week Lytica began using new Lytica commodity names in our online Component Cost Estimator (CCE)  product. In CCE, we will be displaying what we refer to as the Major Commodity name; the underlying construct consists of finer levels of granularity ranging from Super, Major, Sub and so on in order to classify the components. For some components, we may also show the sub commodity if it aids in classification recognition. Aligned with the commodity designation is the component attribute, parametric and vertical market classification necessary to adequately define a device. The need for an adequate definition has been a...


Solving Critical Shortage Issues

Shortage Mitigation Revisited

How Lytica became a unique analytics company: Part 22 I have been thinking about shortages again and how one might improve their supply situation in these difficult times. In July, I posted a blog to scmroundtable.com titled “Shortages: Three Extreme Mitigation Approaches” where I suggested things that are somewhat “outside-the-box” for normal sourcing but not so when viewed in an environment of extreme scarcity of material. Today, I have another thought that may help some of you and have created a game to help you experience how your company may be hindered in finding parts. I call the game “Spot...


Unique Analytics Company

Ken, your engine is revving a lot of RPMs!

How Lytica became a unique analytics company: Part 20 This blog’s title is an email quote from a customer trying the extreme shortages mitigation approaches outlined in my last blog. He was surprised by the number of alternatives we tabled for him. This individual is one of the best supply chain professionals I know. He works for one of our clients in the Bay area and has worked for a number of industry leading telecom and computer companies. I can guarantee you that, based on his work ethic, experience and mindset, he has turned his supply base upside down trying to...


Shortages: Three Extreme Mitigation Approaches

Shortages: Three Extreme Mitigation Approaches

How Lytica became a unique analytics company: Part 19 The introduction of semi-autonomous vehicle demand coupled with the already growing smart phone requirements for passive components - particularly MLCC capacitors - has created significant shortage problems for EMS and OEM companies in the last year. This has caused a surge in prices for those lucky enough to secure supply and severe shortages for the less fortunate ones; most component users experience a combination of both. There appears to be an excess of demand over supply of about 15%, maybe more. SCM Roundtable has a published white papers authored by Di Han...


Characterization and Prediction using SPC

Characterization and Prediction using SPC

How Lytica became a unique analytics company: Part 14 Characterization and prediction are two of the things we are working on in our Advanced Technology Center (ATC). When you look at what all of our effort in AI technology and data science deliver, it is really the ability to characterize your supply chain performance against accurate reference sources and then make predictions about how specific actions could improve your situation. All of our work is focused on getting reference information on cost, security of supply and compliance. We are continuing to build reliable and trusted information that can be used...


Bradley's Law

The Genesis of “Bradley’s Law”

A company should expect to pay for a specific electronic device – a price commensurate with their Competitiveness within that particular commodity.   This Competitiveness is the measure of how the supply chain sees that company.     Ken Bradley, Founder & CTO Lytica Inc. When Ken Bradley founded Lytica in 2005 as a consultancy practice, his primary areas of focus were setting up supply chains and price negotiations for Electronic OEMs. From his varied background within Nortel Networks (Silicon Process Engineer, Operations Manager, President of China’s Guangdong Nortel JV and Nortel’s Chief Procurement Officer) Ken had always been intrigued with the science behind...


Author: Category: Component Pricing, Cost, Overhead Costs, Product CostComments: 2Post Date: March 21, 2017