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,...

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...

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...

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...

Will Electronic Distributors Disappear? (Part2)

Is the current distribution model sustainable in the future? To answer this question, let us re-examine whether the three prerequisites mentioned in WILL ELECTRONIC COMPONENT DISTRIBUTORS DISAPPEAR? (PART 1) will continue to exist for the distribution businesses. Re-cap of the prerequisites: They keep inventory to provide materials to buyers faster than manufacturers do. It is costly for manufacturers to manage many small customers. Information asymmetry provides a profitable earnings opportunity through the gap between selling and purchasing price. Re-examination of these prerequisites: ...

 Supplier Customer Diversity Sensitivity and Resilience

In my last blog, Supply Chain Crash Test, I asked if your supply chain could withstand a tsunami like event that might wipe out many component suppliers who serve supply chains of the OEM or EMS companies that would cause it. I asked you to postulate what would happen if Apple had experienced the Samsung battery problem; this would be a tsunami … do you know the impact it would have on your supply chain? In the blog, I stated...

“We supply the science – you supply the art”

In October, I attended the i2030 National Manufacturing Summit in Ottawa Canada, co-hosted by industry groups the CME (Canadian Manufacturers and Exporters) and the CMC (Canadian Manufacturing Coalition). The agenda was geared towards manufacturers and, considering our customers worldwide are comprised of OEM, EMS providers and ODMs, it was certainly topical and relevant to Lytica. Many of the discussion threads touched on the 4th industrial revolution or Industry 4.0 for short.  For the purposes of a refresher and setting the context,  the...

Will Electronic Component Distributors Disappear? (Part 1)

Undoubtedly, electronic component distributors have contributed to the tremendous development of the electronic manufacturing industry for a long time. Being the middleman between electronic component manufacturers and buyers of components, distributors provide value to both parties, allowing them to maintain and grow their business. The diagram below demonstrates the role of component distributors in a simplified supply chain. Distributors offer major value to buyers by addressing 3 key procurement needs: They provide purchasing channels for small manufacturing companies who cannot purchase...

Supply Chain Crash Test

Automobile manufacturers are constantly driving their cars into crash structures to see how they stand up. When was the last time that you crash tested your supply chain? What would have happened to your supply chain if Apple had experienced the Samsung battery problem? A year ago no one could have predicted that the number 2 smartphone company would be in disaster recovery mode due to safety issues with their phones. Obviously their sales will be impacted from a loss...

Professor Rosling is an interesting fellow

Professor Hans Rosling is an interesting fellow. In his documentary Don't Panic: How to End Poverty in 15 Years, which details the United Nations’ plan to end poverty in 15 years, he describes two paths to economic prosperity while improving the human condition. These paths have great importance to the supply chains of the future. The first path he describes is one that, historically, has been taken by the USA, Great Britain and many countries guided by the World Bank....