The challenge
The market for electronic components is characterized by extreme cycles. Allocation phases, geopolitical tensions, unforeseeable natural events or the sudden focus of semiconductor manufacturers on higher-margin sectors (e.g. AI infrastructure) regularly lead to massive market shortages.
Even the absence of a single cent item on a complex printed circuit board is often enough to make the completion of a high-tech end product impossible. The dependence on highly fragmented, global supply chains further exacerbates this situation. Negative news regarding delivery delays or price increases often only reaches a company shortly before the planned delivery – and then you don’t have the time to consider well-founded alternative decisions.
What risks arise in the event of supply bottlenecks?
Exploding costs
On the spot market, prices for scarce components often rise by ten or a hundred times the regular price. There are also costs for express freight or expensive redesigns.
Lost delivery capability
If contracts with end customers cannot be fulfilled due to missing components, there is a risk of severe contractual penalties and long-term loss of image. Your development department has to examine technical alternatives instead of working on new innovations – which may mean that your competitors achieve a faster time-to-market.
Loss of quality
If you resort to untested, dubious sources, you run the risk of installing counterfeit components or overstocked goods.
Production downtime
If the production lines stand still, the fixed costs continue to run mercilessly. Flexibility in production planning is completely lost. The costs
of a production stoppage often exceed the investment in a targeted stockpiling strategy many times over!
How RTS Electronic supports
As an owner-managed, medium-sized company based in Waltrop, Germany, RTS electronic GmbH offers customized strategies to make your supply chains crisis-proof . We do not act purely as a trading company, but as a strategic procurement and logistics partner:
Global sourcing network: Thanks to our globally established network of
certified suppliers and manufacturers, we can still find
components even if the traditional distribution channels report “allocated”.
While franchise distributors are bound to rigid manufacturer specifications,
we act completely independently and with maximum flexibility in global purchasing.
Stockpiling and logistics concepts: We offer you security storage at our own premises. On request, we can also provide storage at two geographically separate logistics locations. We buy anti-cyclically for you and store the goods professionally (temperature – humidity – ESD). Thanks to our independence, you avoid price increases by the manufacturer (no ship & debit) and avoid potential interim purchases.
Obsolescence management & second sourcing: Our technical team
analyzes your bill of materials (BOM) at an early stage, identifies single-source risks and suggests qualified alternative components (cross-references). We focus on your project and not on the manufacturer. We do not limit ourselves to a rigid line card, but access a global network of over 2,000 (!) manufacturers and suppliers.
Uncompromising quality assurance: Every component undergoes strict quality
Quality inspections and technical solutions in the area of traceability (MODI
WES V5 & PackTrace) to rule out defects and shortages before shipping
. If it is necessary to dry the components, we
carry this out professionally using two Memmert drying ovens.
Specific strategies: Use these advantages for your sourcing scenarios. Depending on the probability of failure and the potential negative impact on your company, you can have individual items sourced worldwide by RTS. This allows you to secure competitive prices to minimize the costs of your BOM and store the goods directly in order to secure production at the same time. You determine the volume with complete flexibility: either store a partial requirement (e.g. 20-40%) as a strategic backup for your main supplier or directly secure a complete annual volume in terms of price and availability.
Second source strategy in practice
Risks can be reduced and security of supply increased through the targeted distribution of procurement volumes.
Practical example from the SME sector
The situation:
A medium-sized mechanical engineering company from the region urgently needs a specific microcontroller from a leading manufacturer for a control series. The regular delivery time suddenly skyrockets to 52 weeks – production is due to stop in four weeks.
The RTS solution:
The customer contacts RTS electronic. Within 48 hours, we localize available original stocks via our network in Asia and the USA. At the same time, our team checks whether a pink-compatible alternative from another manufacturer exists. Result: We secure the original controller for the next three months and at the same time set up a stockpiling strategy that guarantees the supply for the next two years via a security warehouse in Waltrop. Production continues uninterrupted and the customer can technically test and approve the pin-compatible alternative.
FAQ – Frequently asked questions
How does RTS electronic guarantee the authenticity of components procured on the open market?
Quality is our top priority. We work exclusively with audited, long-standing partners. In addition, incoming goods from the free market undergo a strict, multi-stage test procedure (including visual inspection, labeling check and comparison of proof of origin) to rule out counterfeits. If external tests (X-ray, electrical tests, etc.) are necessary, we work exclusively with German test houses. As an official member of the ERAI, Inc. we are committed to a reputable supply chain.
From which series size are framework agreements or safety stocks worthwhile for you?
As an agile medium-sized company, we do not have rigid corporate structures. We develop stockpiling concepts for highly specialized small batches as well as for medium and large annual requirements. The decisive factor is your individual risk, not the sheer volume.
Can you also procure components that have already been officially discontinued (EOL) by the manufacturer?
Yes, sourcing EOL goods is one of our core competencies. We track down remaining stocks on the market or help you to find suitable replacements (drop-in replacements) in good time to prevent an expensive redesign of your assembly. As a long-standing member of the COGD (Component Obsolescence Group Germany) e.V
How quickly can RTS electronic respond to an acute bottleneck request?
In acute “line-down” situations, every hour counts. Thanks to our flat hierarchies and direct contact partners, you will usually receive a concrete offer including a reliable delivery time within 24 to 48 hours, subject to availability.
Make your production immune to supply bottlenecks!
Don’t rely on luck. Let us analyze your parts lists together and prevent bottlenecks from occurring in the first place. The RTS electronic GmbH team is looking forward to your challenge.
Your direct line to us: +49 (0) 2309 95 17 0
E-mail for your parts lists and inquiries: info@rts-electronic.de
