Design Con 2015

Semis & Supply Chain: Chip CEO Points to Disconnects

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Hailey Lynne McKeefry
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Re: Such a diverse set of needs
Hailey Lynne McKeefry   4/30/2014 6:55:15 PM
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@sbsny, welcome to the conversation! Clearly distribution has always had a place with smaller manufacturers... How do you see the demands on the channel evolving?

tirlapur
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Supply Network Guru
Re : Semis & Supply Chain: Chip CEO Points to Disconnects
tirlapur   4/25/2014 10:28:32 AM
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I think the reason that the semiconductor guys are talking to a guy who is two levels away from the customer because the semiconductor industry doesn't have visibility for the customer, and obviously if it doesn't have visibility, the customer would be talking about Unit Price because having no visibility means the customer is not supplied any portfolio of the commodities in the semiconductor industry, the same portfolio that outlines the price of the commodity to the customer and explains the price. Reduced visibility means reduced confidence among customers in approaching the industry directly, and therefore to play it safe they are channelling using the middle men.

sbsny
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Such a diverse set of needs
sbsny   4/11/2014 3:14:21 PM
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Great discussion! Having worked at small and large OEMs in positions from design engineering to regional management levels in engineering and manufacturing as well as various positions in distribution I have experienced many angles of this discussion. Unless you are a top tier OEM there are generally not enough technical resources to support every design engineer looking for solutions. Suppliers are clearly great for detailed support at large OEMs. For the remaining tier I have seen valuable examples of working with a distributor partner for design suport from concept through production and then the extra help to support EOL issues. For distribution to support services they need to be compensated in accordance with the value. I have also seen tier 1 OEMs rely on distribution as their supply and design chain partners and be very profitable along the way. In the end it's finding the right value model to fit the needs.

_hm
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Re: Very much true
_hm   4/10/2014 6:39:05 PM
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@Hailey: Consulting with them with broad product portfolio is utterly futile excercise. Just imagine the contemparary pace of technology. It is almost impossible to keep up with this with few technical guy with little or moderate desing experience.

Given the opportunity, designer like to be in touch with semiconductor vendor and with guys who design these products.

 

Hailey Lynne McKeefry
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Re: Very much true
Hailey Lynne McKeefry   4/9/2014 8:12:33 PM
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@SP, what do you see as the main benefit for the OEM of a more consolidated market? I could argue that having choices and competition could be a really good thing.

Hailey Lynne McKeefry
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Re: Very much true
Hailey Lynne McKeefry   4/9/2014 8:11:07 PM
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@HM, i sympathize with you, and clearly the distribution channel has expanded to try and capture demand that they see. To play the devil's advocate, wouldn't consulting with an organizatoin that represents a broad variety of products in its portfolio end up with better designs? If you have a hammer, everything is a nail. THe same might be true of semi makers trying to convince an engineer to design in their chips.

SP
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Supply Network Guru
Re: Very much true
SP   4/9/2014 2:09:48 PM
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Yes semiconductor market is definitely not an easy one. Its so difficult to know whats the actual demand and there is always risk of over production and obsolescnce. Instead of having many small distributors and manufacturers, its good to have few.

_hm
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Supply Network Guru
Very much true
_hm   4/5/2014 3:48:08 PM
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This is very much true and put in very most appropriate words.

Few months back I also commented to your blog that reducing margin for distributors is very much desirable. The logicc- in whole chain their value addition is almost nil. And on the contarary due to very much lack of knowledge, it adds up delay and confusion. Also, for technical designer it creates chaos.

I really loved those halcyon days. It was so much fun to design and interact with semiconductor manufacturer - even with snail mail, telex and telephone call.

 



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