CEM Establishes Distribution Agreements to Safeguard Component Supply

05 April 2024

Emerging value-add custom electronics manufacturer (CEM) Alan Anderson Manufacturing has just announced the 1st in a series of franchise agreements with key component suppliers.

This underlines the unique, nuanced approach that the business is taking. By having such franchises in place, its customers will not be exposed to potential supply channel shortages that could hold up production activities. The initial agreement to be secured is with power discretes producer Diotec Semiconductor (an ISO 9001/14001 compliant operation, which specialises in rectifiers, triacs, MOSFETs, small signal diodes, TVS protection devices, etc.).

“When the market suddenly experiences a large demand, say for AI processors, this has a knock-on effect as there is not enough capacity to make all types of semiconductors,” Alan Anderson’s Sales Director, Michael Knight, explains. “Naturally, the large producers tend to focus their capabilities on the high-end products that have the biggest margin, resulting in some common parts becoming hard to find, and/or expensive. Yet to build a PCBA you need everything - expensive ARM-based processors and simple discrete diodes. Any missing part will cause production lines to cease, no matter how little the individual component costs. By building franchise relationships with key suppliers of simple, widely-specified parts, we can ensure that our customers’ builds come in on time and on budget.”

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