With the supply chain tightening, Anglia is focused on supporting scheduled orders, but it has also enhanced its offering for design phase customers. Electronics Sourcing asked CEO, Steve Rawlins, about the changes.
Anglia Components has witnessed strong organic growth over several years. What does Anglia offer ESUK readers? Anglia offers the accessibility of high service distribution, effective field application engineering support and competitive volume pricing. You can design with us for small quantities, and then move to volume at a sensible price.
We’ve just introduced more price breaks and smaller pack quantities to support customers in the design and prototype phases of a project. We’ve also hired more field application engineers. During the design phase, when we work with you, we recommend components that are not only technically suitable, but also likely to be available for the life of the project on a realistic basis without high minimum order quantities. For the volume production phase, Anglia holds higher stock levels in proportion to our business than most. This inventory is held in the UK and priced competitively, with flexible shipment options tailored to your needs.
Allocation and lead times are really impacting readers’ supply chain plans. How can Anglia help currently and what are you planning? Lead times on many components are now six months and moving out. The situation has deteriorated rapidly since September. Unsurprisingly, price increases are more likely and probably inevitable. I expect the market to be tight for at least the first six months of 2018. Anglia made a bigger‑than-usual investment late last year in inventory, meaning we have stock in a market where allocation of certain products is under way. When the supply chain tightens, we focus on supporting regular customers with scheduled orders, so customers that work with us get the best support. At the moment, we won’t supply brokers with shortage parts even if invited to ‘name our price!’
Anglia 80:20 has been an immense success, providing customers with the reassurance of instantly accessible stock, held at their premises on an invoice usage basis. This is a major advantage for customers at any time, but especially when supply is restricted.
Which sectors are seeing growth in the UK and Ireland? Contract manufacturing is currently performing well, especially on the back of the more competitive pound. Wireless is definitely a bright spot, with customers adding this functionality to instruments of all kinds. Other high spots include lighting, which remains a good market with more customers converting to LED. We are also seeing growth in medical applications, especially wearables. Some of this is coming from demand for telehealth solutions and there is also ever-increasing interest in fitness monitoring solutions.
Has Anglia Live proved popular with purchasing professionals requiring small batch quantities? Anglia Live has seen steady growth since its launch and we’re continually enhancing and improving it to broaden its appeal. Up to ten breaks can now be shown for each part. Other improvements include increased loading speed and streamlined navigation. We have also added vertical market sections covering internet of things, industrial, lighting and other applications.
We’ve always been committed to supporting customers through all the phases of a project’s life from initial design through prototype to volume production. With new enhancements like small pack quantities, our support in the early phases is now as comprehensive and flexible as our support during volume production.
Customers looking to order low volumes for design and prototype phases can now access stock surface mount parts, in small quantities, in cut tape format.
What advice would you give readers on ironing out any bumps in the supply chain? Customers with forward orders are first in the queue and always in the best position if demand for a component exceeds supply. Essentially, we can give the best support to customers that support us. For example, if you’ve placed a scheduled order with us, we can hold stock against that, allowing us to keep supplying you, even when conditions are difficult. If you haven’t, I’m afraid you’ll get nothing.
For buyers that can’t commit to firm deliveries, a forecast is good, but we like to understand what that forecast is based on, and what factors influence demand in your business.
Finally, what are your thoughts on Brexit and will it have implications in the UK electronic component sector? Brexit so far has been a positive thing for UK manufacturing, with a more competitive valuation on sterling – the rate it should have been all along. We’ve seen a massive jump in customers who export technology in the global market.