There is no fast fix to the component volatility that is currently impacting electronic product supply worldwide; however, supply partnerships are more important than ever before. This month we celebrated a 30-year partnership with #1 ranked electronics distributor Arrow Electronics and sat down with the team to explore and reflect what the partnership has enabled for our customers over the journey.
Can you tell us about Arrow and your services?
Arrow Electronics is a global technology solutions provider ranked 102 within the Fortune 500 group of companies.
Arrow Electronics guides innovation forward for the world’s leading technology manufacturers and service providers. Our broad portfolio spans the entire technology landscape and helps customers create, make, and manage products that make a difference in our everyday lives.
Leveraging an extensive technology partner ecosystem, products and services portfolio, expertise, and scale, Arrow helps our customers simplify their technology lifecycle experience, bringing their products to market faster–all the way from ideation, development, prototyping and NPI, through to manufacturing, supply chain, and managed services throughout the technology product’s life.
Arrow has a strong commitment and presence in the ANZ region to support the growth of the local industry.
We continue to invest in our capabilities and our people globally. Locally we have Field Application Engineers trained by specialists within our supplier partners providing technical support through the design process. We have a local Product Management team focused on the management and support of all manufacturer relationships in the ANZ market. Our sales team comes with rich and extensive industry knowledge and experience. This is all backed by a strong operational presence and local warehousing facility here in Melbourne.
Extel and Arrow have had a 30-year long supplier relationship. What is it like to work with Extel and what does the partnership mean to you?
We are proud to be there to serve Extel when it was initially established with just a team of 4 staff.
Back then Extel designed & manufactured Pair Gain equipment for the telecommunications industry & that business grew very quickly in a very short time frame. We have seen the business evolve over the years with a strong focus on Contract Manufacturing & Design Services. We have seen the business grow from strength to strength.
Our partnership has always been important to us, and we continue to look at ways we can support Extel to grow and evolve.
Have you seen any growth in Extel during the past 3-years and if so, what?
We continue to see Extel evolve through its investment in systems, processes, and staff. This brings them greater strength and capability to continue growing into the future.
How do you contribute to Extel’s robust supply chain?
Arrow Electronics is a key supplier to Extel, supplying many different electronic components. There are a number of value-added programs we run that contribute to ensuring Extel has a robust and reliable supply chain for its customers.
What is your process for handling cost efficiency through the supply chain?
Our supply chain services and capabilities are designed to help customers improve efficiency, flexibility, scalability and reliability while looking at ways to reduced risk and total costs, enabling customers to focus on their own critical priorities while Arrow does the legwork.
What do you offer clients like Extel that others can’t and how do you think this benefits our customers/businesses reliant on electronic components for their products?
Arrow Electronics provides the strongest localized service and capability with the ability to leverage our global capabilities and resources. Our portfolio of suppliers and products is second to none.
Combining these with our supplier relationships we offer customers like Extel the ability to work closely with Arrow to leverage our capabilities to create a faster time to market from the early design stages through to final manufacture and maintenance of products.
Can you talk about your investments in Arrow and what it means for clients like Extel?
This is an ongoing process. Several years ago Arrow invested in a global platform to ensure we had a strong base to manage and grow as the industry expanded. It has given us a platform that we can continue to develop to broaden our capabilities to service customers like Extel.
We continue to invest in our local resources and the development of our staff to provide the highest level of service possible.
What are some of the key challenges you’re seeing in supply chain management now and how are you managing them?
The supply-and-demand imbalance originated in early 2020 as the pandemic started to spread globally. Global demand for personal devices, medical equipment and new technologies in communications and electric vehicles has increased significantly.
Increased demand combined with supply shortages on wafers and other raw materials has led to extended lead times and price increases across all manufacturers.
We have also seen the cost of air & sea freight significantly increase due to the pandemic & the lack of flights coming into the country.
Leveraging our experience and relationships with suppliers and our robust asset management and supply chain capabilities, we have been able to work closely with our customers to better understand their needs and respond to market environments.
Finally, what’s the most rewarding part of working with the Extel team and our programs over the years?
The most rewarding part of working with Extel is seeing new opportunities develop and go into production.
It’s an incredible feeling to see Extel continue to grow and know you have been part of that journey.