SaaS for component pricing: Q&A with Lytica chairman Ken Bradley

How much should one pay for a chip or a component? Lytica, a Canadian supply-chain pricing analytics company, has the answer. Founded by former Nortel chief procurement officer Ken Bradley, who, like many others in the IT industry, was once bemused by component pricing, Lytica is transforming itself into a software-as-a-service (SaaS) company, helping OEM and EMS make well-informed deals when buying or selling. Digitimes recently had a talk with Bradley about the value that business intelligence, such as pricing...

SupplyLens™ Pro – 3 FAQs

SupplyLens™ Pro - Spend Benchmarking Plugin With the evolution of Lytica’s products from our legacy tools to the establishment of SupplyLensTM Pro, we continue to see similar technology questions from new and existing customers. In this blog, we’re sharing three common FAQs the Customer Success department sees. How does volume affect Lytica’s Target Pricing methodology? Bradley’s Law is fundamental to the technology behind Lytica’s products. Lytica has unparalleled visibility into electronic component pricing. As such, we can debunk the common misperception that price is...

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...

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....

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...

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...

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...

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...

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,...

Manufacturing Sector- The Growth Engine of the Economy

GDP dynamics - An important factor for developing supply chain strategies Manufacturing sector has been the growth engine of the global economy for the better part of the last two centuries. The transition from an agrarian to manufacturing economy is still an important indicator of growth, prosperity and rise in living standards for a country. For developing nations, improving and investing in the manufacturing sector continue to be a strategic focus area. Even for a country like India, which has a...