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Electronic Component Procurement and circuit board components Sourcing Solutions

We understand that low-cost component sourcing is fundamental to offering our customers the lowest possible cost to manufacture.By using our global purchasing teams, we are able to obtain the lowest prices in the global marketplace. Our global network of suppliers also enables us to track down components that are often hard to source.

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Electronic Components Procurement

Sourcing and procuring electronic components is a crucial part of any electronics manufacturing process. With the rapid growth of electronics manufacturing, especially for consumer electronics, automotive electronics, medical devices, and other industries, having a robust and optimized electronic component sourcing strategy is key to remaining competitive and meeting production demands. This article will provide an in-depth look at electronic component procurement, circuit board component sourcing solutions, strategies for optimizing the sourcing process, and how to build resilience into the electronics component supply chain.

Overview of Electronic Component Procurement

Electronic component procurement involves purchasing all of the individual parts that go into manufacturing printed circuit boards (PCBs) and complete electronic devices. This includes active components like integrated circuits (ICs), microprocessors, transistors, diodes, LEDs, etc. It also includes passive components like resistors, capacitors, inductors, transformers, and more. Additional components needed are connectors, buttons, displays, sensors, power sources, PCBs, and all accompanying hardware.

For any given electronic device, there may be thousands of individual components that need to be sourced from suppliers and manufacturers around the world. The procurement of these components is a complex process that needs to account for aspects like:

  • Component availability – Ensuring needed parts are available when required for production schedules. This includes proactively managing end-of-life components.
  • Lead times – Understanding and accounting for production and shipping times of each component. Shorter lead times allow for more flexibility.
  • Cost management – Negotiating and controlling procurement costs while balancing quality needs. Taking advantage of volume discounts and supplier relationships.
  • Quality – Vetting suppliers and components to ensure they meet specifications and quality requirements. Avoiding counterfeit or low-quality parts.
  • Compliance – Adhering to regulatory, environmental, and other applicable compliance regulations. This includes RoHS, REACH, Conflict Minerals reporting, and more.
  • Supply chain optimization – Strategically choosing suppliers and manufacturing locations to optimize the supply chain for costs, speed, quality, and risk mitigation.

To effectively handle electronic component procurement, organizations utilize sourcing teams to properly manage the complex web of suppliers, manufacturers, and vendors that provide the thousands of PCB components needed for production.

Best Practices for Electronic Components Sourcing

To build an efficient and effective electronic component sourcing process, organizations should follow these best practices:

Consolidate suppliers

Consolidating the supplier base allows buyers to build stronger relationships with fewer suppliers. This provides benefits like better pricing through higher volumes, improved responsiveness, and better visibility into the supply chain. The goal is to find suppliers that can provide a broad catalog of parts to cover most procurement needs.

Use authorized distributors

When possible, source components through authorized distributors approved by the component manufacturers. This helps ensure authentic, high-quality parts. Purchasing via unauthorized channels increases the risk of counterfeit components.

Favor local suppliers when possible

Utilize local suppliers within the same country or region when feasible. This simplifies logistics and can reduce costs and lead times. However, the priority should be quality, so only use local suppliers that meet standards.

Do volume-based pricing

Leverage volume discounts through aggregated orders, long-term supplier contracts, and by minimizing the number of suppliers. This makes procurement costs more predictable as well.

Use downstream supply chain visibility

Work with suppliers that provide visibility into their own supply chains. This gives insight into lower-tier component availability and can prevent shortages.

Review supplier certifications

Require suppliers to hold certifications like ISO-9001 for quality management. Also verify any special certifications needed for heavily regulated industries like automotive, aerospace, or medical.

Demand test data

Require statistically relevant component testing data from suppliers to validate quality and reliability. This provides confidence in components before they enter production.

Enforce process controls

Suppliers should adhere to established processes for change control, failure analysis, corrective actions, escalation, and other disciplines to ensure consistency and address issues quickly.

Build supplier scorecards

Create scorecards that track key performance indicators for suppliers like quality, lead time, responsiveness, and pricing. This quantifies their performance for easier management.

Audit supplier processes

Conduct periodic audits of key suppliers to verify their internal processes meet expected standards. This can cover areas like quality control, counterfeit prevention, ESD control, and more.

FPGA Brand distributore

Electronic Components Procurement Models

There are several procurement models organizations can utilize to source electronic components:

Internal Sourcing Teams

Larger organizations often have their own internal sourcing teams and processes to procure components directly from suppliers. This provides the most control and flexibility, but also incurs more overhead.

Contract Manufacturers

Contract manufacturing partners can procure components as part of their assembly services. This simplifies procurement but reduces visibility into the component supply chain.

Electronics Manufacturing Services (EMS) Firms

Specialty EMS providers can completely manage the end-to-end electronics manufacturing supply chain, including procurement. This is ideal for smaller organizations with less manufacturing experience.

Electronics Distributors

Broadline and specialty electronics distributors provide a centralized source for procuring thousands of components from a variety of suppliers. However, this can limit customization and volume discounts.

Online Electronics Platforms

Emerging e-commerce platforms like Alibaba, Digikey, Mouser, Newark, Arrow, Avnet, Future Electronics, and others simplify discovery and purchase of many components online. However, not all suppliers utilize these channels.

For most organizations, the ideal approach is a hybrid model that combines internal sourcing teams with external distributors and platforms to provide the best balance of control, flexibility, and procurement overhead.


Optimizing Component Selection

automotive grade vs commercial grade
Automotive Grade vs Commercial Grade

Selecting the most appropriate components is crucial to meet design requirements while minimizing costs. Here are tips for optimizing component selection:

Specify wide temperature ranges

Avoid narrowly focused temperature ranges when possible to allow more component choices. The wider the temp range, the more options.

Seek second sources

Always try to design-in alternate component choices from other suppliers to prevent sole-source risks.

Leverage standard components

Standard component types with multiple supplier options are easier to source than proprietary or custom parts.

Reduce unique item types

Minimizing the total number of unique component part numbers needed reduces sourcing complexity and cost.

Plan for long-term availability

Avoid components at risk of short-term obsolescence. Check lifecycle projections and plan for component longevity.

Design with newer technologies

When possible, use newer component families over older legacy ones with more limited availability.

Evaluate on total cost

Look at total procurement cost impact of each component choice, not just unit price. Factor in logistics, lifespan, reliability etc.

Assess technical tradeoffs

Consider the full technical tradeoffs of alternate components, not just pricing. Evaluate parameters like performance, power, size, quality, etc.

Use standard packaging sizes

Opt for common packaging sizes and formats that maximize sourcing flexibility across suppliers.

Reduce waste

Designs should minimize waste by using optimal board sizes, panelization, and assembling approaches.

Managing Component Obsolescence

One of the biggest challenges in electronic component sourcing is managing obsolescence – when components are discontinued by suppliers and no longer available. This can quickly disrupt manufacturing if not planned for proactively. Strategies for managing obsolescence include:

Component lifecycle monitoring

Work with suppliers to actively monitor end-of-life (EOL) and last-time-buy (LTB) forecasts for at-risk components. Sign up for change notifications.

Design-in replacement parts

Engineer next-generation products to use newer replacement components for ones going obsolete.

Lifetime buys

When EOL notices are received, do one-time lifetime inventory buys to stock up on needed volumes before obsolete parts disappear.

Use aftermarket suppliers

Specialty aftermarket brokers can sometimes procure difficult-to-find obsolete components, often at a premium.

Component substitutions

Find replacement parts that can substitute for obsolete items. May require redesigns or adjustments if not drop-in compatible.

Use emulators

For obsolete proprietary ICs like CPUs, component emulators can mimic pin-compatible functionality.

Component harvesting

Remove obsolete components from old products or boards and reuse them in current production as available.

Refurbish equipment

Keep old component-population equipment operational in order to continue placing obsolete parts when needed.

Buy component intellectual property

If feasible, purchase licenses, documentation, and rights to fabricate obsolete proprietary components.

Design flexibility for change

Architect products so that certain subsystems can be redesigned to use new components without affecting the whole system.

Expanded inventories

Keep larger stocks of components with obsolescence risk to buy more time before redesigns are needed.


Building Resilient Supply Chains

With frequent component shortages and supply chain disruptions in recent years, developing resilience has become essential for electronics sourcing:

Multi-sourcing components

Source each component from at least two suppliers to enable supply flexibility in case one has shortages.

Stockpile key inventory

Keep expanded inventories and safety stock for high-risk components susceptible to shortages.

Regionalize supply chains

Have component inventory located close to production facilities to simplify logistics if global shipments are disrupted.

Improve supply chain visibility

Gather supply chain data from suppliers to gain insights into lower-tier risks, constraints, and bottlenecks.

Refurbish old equipment

Maintain and protect legacy component manufacturing equipment to provide fallback production capacity if needed.

Develop robust forecasting

Improve demand forecasting accuracy through data analysis and algorithms to mitigate volatility.

Expand warehouse space

Increase storage capacity to hold larger component inventories as a buffer against shortages.


Dual source raw materials

Make sure component suppliers have at least two sources for their critical raw materials and substrates.

Find alternate substitutes

Engineer components to allow flexibility to use alternate materials if certain raw materials become scarce.

Standardize components

Maximize use of standard component families with multiple global production locations for flexibility.

Monitor industry early warnings

Stay on top of industry disruption news through trade associations, news, and early warning systems.

Questions and Answers

active and passive components

Q: What are some key metrics to track for electronic component procurement performance?

A: Key metrics to track include:

  • Supplier lead time accuracy – Ensure quoted lead times match actual delivery times.
  • Supply chain flexibility – How easily can you switch volume between suppliers?
  • Component quality – Monitor defects-per-million and field failure rates.
  • Procurement costs – Track costs over time to identify improvement opportunities.
  • Inventory turns – Faster turns mean you are managing inventory levels optimally.
  • Component shortages – Quantify the revenue impact of component allocation and shortages.
  • Counterfeit infiltration – Detect and log occurrences of counterfeit components.
  • Time-to-market – Impact of component availability on product introduction schedules.

Q: How can you identify the optimal suppliers among the thousands of options globally?

A: Key factors in identifying the best suppliers include:

  • Technology specialization – Suppliers focused on specific component technologies.
  • Quality certification – Suppliers certified to critical standards like ISO-9001.
  • Reliability data – Suppliers willing to share reliability data on their components.
  • Technical support – Availability of engineering resources for troubleshooting and keeping designs up to date.
  • Business stability – Favor well-established suppliers vs. unproven ones.
  • Logistics capabilities – Suppliers with warehouses near your factories simplify shipping.
  • Responsiveness – How quickly do suppliers address requests for quotes, samples, etc.
  • Previous experience – Consider supplier relationships from other companies.
  • Volume capabilities – Ensure suppliers can support your production volumes as you scale.

Q: What is the best way to manage costs in an unpredictable component market?

A: Recommended techniques to better manage procurement costs include:

  • Aggregate orders – Place less frequent bulk orders instead of many small ones.
  • Leverage long-term contracts – Agree to consistent pricing for specified terms.
  • Pursue supplier partnerships – Work closely with suppliers for mutual benefit.
  • Design with flexibility – Allow alternative component choices depending on market dynamics.
  • Pool demand – Coordinate procurement across business units or sites.
  • Monitor market trends – Stay on top of shortages, price swings, and market forces.
  • Use distributors – Leverage authorized distributors for buying flexibility and economies of scale.
  • Standardize designs – Reuse designs and components across product families to maximize volumes.
  • Perform online auctions – Use online platforms for competitive bidding.
  • Offer volume discounts – Negotiate better pricing for aggregated orders.

Q: How can you tell if you are receiving authentic vs. counterfeit components from suppliers?

A: Strategies for detecting counterfeits include:

  • Purchase from authorized channels and distributors only. Avoid untrusted brokers or aftermarket sources.
  • Physically inspect components for exterior defects and inconsistent markings.
  • Verify lot codes and date stamps match official numbering systems.
  • Perform sample x-ray inspection of internal structures for alterations.
  • Confirm electrical parameters like consumption, output, response times, etc. match datasheet specifications.
  • Check for blacktopped or remarked surfaces that may hide exterior changes.
  • Validate certificates of compliance and material analysis reports for chemistry consistency.
  • Conduct failure analysis on suspect components to determine cause.
  • Leverage dedicated counterfeit detection technologies like laser scanning, thermal imaging, acoustic microscopy, and others.

Q: What are some ways to get better pricing from electronic component suppliers?

A: Tactics to get better component pricing include:

  • Consolidating spend to fewer suppliers to increase volumes.
  • Entering into long-term volume-based pricing agreements.
  • Paying early to take advantage of early payment discounts.
  • Leveraging distributor relationships for aggregated discounts across suppliers.
  • Having suppliers compete for business through quoting processes.
  • Using EMS providers that aggregate orders across customers.
  • Ordering in bulk quantities rather than small orders to get quantity breaks.
  • Removing costly special requirements like custom packaging.
  • Downselecting to lower cost standard components vs. expensive proprietary ones.
  • Sharing future demand forecasts to help suppliers with planning and allocation.
  • Committing to minimum order quantities.
  • Avoiding highly constrained components that carry supply premiums.
  • Switching to newer component families with better pricing due to technology maturation.


electronic components store

Managing an effective and efficient electronic component procurement and sourcing process is complex, but critical to success. Following best practices around supplier management, obsolescence mitigation, supply chain resilience, optimized component selection, and cost control can help organizations maintain a competitive edge. Leveraging the right combination of internal sourcing expertise supplemented by authorized distributors and online procurement platforms provides the most robust results. With vigilance and the right strategies, even the challenges of supply variability and component shortages can be overcome to sustainably meet production requirements and business goals.


Electronic Components:

Example 1: (Relay Switch Circuit)


Here in this circuit, we have selected NPN type BJT transistor BC337. This transistor is connected in common emitter mode and 1KΩ resistor is the base resistor used to control the base current . The 10KΩ resistor is used to tie the Base of BC337 to ground (GND) so that when trigger at input positive edge trigger is given, then the transistor will go in saturation and conducts through Collector and Emitter to short the GND to Relay coil. Hence Coil will energize and Normally Close (NC) the contacts of Relay.

On the other hand if the trigger is not applied transistor will remain in cutoff and C-E junction will remain open and GND is not shorted to coil of relay hence relay will remain in Normally Open (NO)


The two main types of transistors are BJT and MOSFET. The BJT transistor is a current controlled device and is commonly used in relay control switches.



The relay is an Electromechanical electronic components, that has a coil and two contacts (NO and NC). This coil when 12VDC is applied the relay will change its state from NC to NO and vice versa


The relay are available in 5V, 12V, 24VDC coils and contacts ampere ranging from 10A to 30 A. So if you have to drive heavy load like water pump, Air Conditioner, Blower, Large Servo Motors, then use high ampere relays otherwise for small loads like bulb, LED lights etc use small relays.




The resistor is used to control the current flow and divide the voltage as required. In our case above, we have used “Voltage Divider Network” that drops the voltage at 1KΩ and pass remaining potential to 10KΩ to the base. The table to recognize and select the proper resistor is given. The resistors are very cheap and available at every electronic store. They are available in SMD and Through hole types.

SMD Resistor


Example 2: (Power Supply)

Here in this circuit, we have used adjustable LM317 voltage regulator. The voltage regulator can generate stable DC Voltage output programmed by the two resistors R1 and RV1. Capacitor C3 is the bypass capacitor to connect adjust pin to GND to improve ripple rejection capability. C1,C2,C4   used to eliminate ripple voltage. Diode D5 is used to protect reverse current from output to protect regulator IC.

D1,D2,D3,D4 are full bridge converter to convert AC to DC level. RV1 is trim pot used to set the fixed output voltage.


The transformer is the device that converts high AC voltage like 230VAC to 24VAC low voltage to be used by bridge rectifier. The transformer is selected by finding turns ratio according to the primary and secondary voltages.



This is the semiconductor components, used in bridge rectifiers,fly-back / fly wheel purpose. This diode will forward bias and drop 0.7V across it. In semiconductor devices, Silicon is the important ingredient and proper doping will cause the barrier / junction creation.



This passive component, is very common in electronics and used in dual and single power supplies. Main purpose is filtering. In timing circuits, it is used as RC timers. In OPAMP integrators used in feedback loop. The larger the rated voltage and capacitance, the larger the size of capacitor. 

If the output voltage is regulated at 24VDC then the output ripple capacitor should be selected at rated voltage greater than 24V like around 100V. Otherwise the capacitor will burst or swollen. The longer lead is positive and smaller lead is negative leg.


Voltage Regulator:

The linear voltage regulators are available under 1A rating and can provide output voltage 1.2V to 438V DC. The voltage regulator is selected to check the least dropout voltage, number of outputs, output voltage polarity, input voltage range and packaging as desired case to case basis.

Voltage Regulator


The trim pot is widely used in various electronic circuits. It is used in voltage divider circuits, to set the reference voltage in OPAMP comparator circuits, to set the output voltage in adjustable voltage regulators, used in RF circuits for tuning, used in timers to set the value of R in RC timers. The code 102 written means that

The code 102


Military Grade electronic components

electronic component distributors

Military electronic components are an important cornerstone of weapons and equipment. With the development of science and technology and national defense construction, more and more components are used in weapons and equipment. How to query, count, exchange, process, and uniformly manage component information with many categories and complex parameters is an urgent problem faced by research and development units, production units, users, and management departments.

Scientific and standardized electronic components classification is an important basic work for enterprise informatization and improving the management level of electronic components. At present, all the major companies and industrial departments in my country manage their components according to their classification methods, either by function or process or by inheriting engineering experience, lacking a unified and standardized classification system and parameters measures.

 This status is not conducive to data sharing, nor does it have good interchangeability between them. It also brings many inconveniences to the management of military electronic components (such as quality establishment, inspection, acceptance, evaluation, etc.).

Therefore, establishing a standard and reasonable military electronic components classification is the prerequisite and basis for standardizing military electronic components. The reasonable classification of military electronic components also plays a significant role in preventing the repeated research and development of similar products, the excessive expansion of product varieties, and the enhancement of product versatility and serialization. 

At the same time, the scientific and effective classification of military electronic components will also play a guiding role in the standardization of civilian product classification. Since military electronic components are common for military and civilian use, scientific and effective classification is conducive to the integration of military and civilians. This can promote the conversion of more civilian products to military use, make full use of the industrial advantages of civilian products, and also help military electronic components.


 Manufacturers open up the civilian product market and expand the production scale. Scientific and effective classification of military electronic components is also of great significance to the internationalization of general electronic components. These are the basis for improving the quality level and technical level of military electronic components.

American military standard MIL-STD

MIL-STD-871A(USAF)-1979 Electrochemical removal of inorganic (plating) film

MIL-STD-870A(USAF)-1978 Electrodeposited low brittle  cadmium coating

MIL-STD-868A(USAF)-1979 Electrodeposition low brittle  nickel plating

MIL-STD-866B(USAF)-1978 Grinding of steel parts and chrome-plated steel parts heat-treated to be equal to or greater than 180,000 pounds per inch

MIL-STD-826A(USAF)-1966 Electromagnetic interference test requirements and test methods

MIL-STD-810D-1983 Environmental Test Methods and Engineering Guidelines

MIL-STD-810C-1975 Space and land equipment environmental test methods

MIL-STD-810A-1958 Space and land equipment environmental test methods

MIL-STD-1277A-1970 Electrical splicing piece clip terminal terminal terminal block terminal

MIL-STD-1276C-1979 Electronic component leads

MIL-STD-1271B-1981 Supplementary symbols for the contents of military vehicle description plates

MIL-STD-1252-1975 Inertial friction welding process, process and performance appraisal

MIL-STD-1246A-1967 Product cleanliness level and pollution control program

MIL-STD-1224-1960 visual inspection guide for pneumatic tires (for non-aviation tires)

MIL-STD-1223V-1981 Non-tactical wheeled vehicle treatment, painting, rust prevention, identification mark, and data plate standard

MIL-STD-1188A Commercial packaging of materials and equipment

MIL-STD-1186-1963 When packing the product, add cushioning, fix, anti-swing support, stuffing and waterproof and corresponding test methods

MIL-STD-1184(AT)-1979 Waterproof test of gasoline electrical parts

MIL-STD-1180(AT)-1976 Military Ground Vehicle Safety Standard

MIL-STD-1197A-1976 Military vehicle lamp reflector and related signal equipment

MIL-STD-1165-1968 (Earth) Environmental Glossary

MIL-STD-1157-1965 Calibration and Verification Procedure of Textile Test Methods

MIL-STD-1156C-1982 Hygienic standards for soft drink factories

MIL-STD-1131B-1979 Inventory life and burn-in procedures of aluminum electrolytic capacitors

MIL-STD-1130B(1)-1979 Electric connection without soldering

MIL-STD-977-1982 Test methods and procedures for the qualification of microcircuit production lines

MIL-STD-976A-1981 JAN certification requirements for microcircuits

MIL-STD-1399/072-1978 Ship system impact interface