---
title: Electronic Component Sourcing | ElectroShield
description: As supply chains become more volatile, reliable electronic component sourcing is more important than ever. Here’s how to get it right.
image: https://blog.electroshield.com/hubfs/Electronic-component-sourcing.jpg
---

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 Margi Gay | June 5, 2025

# How to Save Money on Electronic Component Sourcing

Your electronic component sourcing requires access to the right product, quantity and price at the right time. But as market and supply chains become more volatile, how can you guarantee the people and processes relying on you that you can deliver on all counts without fail?

Achieving this requires a long-term [electronic components distributor](https://blog.electroshield.com/electronic-component-distributor-benefits) to help you forecast smarter, respond faster, and find cost-effective alternatives that still meet your technical requirements. That distributor must understand your challenges and how downtime due to lack of component fulfillment brings untold costs.

## Downtime Is Costing You More Than You Think

When a production line grinds to a halt because you’re waiting on a back-ordered connector, the ripple effects are huge. The world’s 500 largest companies lose 11% of annual revenues ($1.4 trillion) because of unscheduled downtime, according to the Siemens[True Cost of Downtime 2024 report](https://blog.siemens.com/2024/07/the-true-cost-of-an-hours-downtime-an-industry-analysis/). You don’t need to imagine how much worse the impact is if you’re among the thousands of other manufacturers.

Those costs include lost output, labor, missed delivery deadlines, and customer trust. And if you have to scramble for rush shipping or pay a premium for minimum order quantities just to keep the wheels turning, those extra fees stack up fast.

A responsive distributor can help with:

- **In-stock fulfillment:** 99.9% of in-stock orders entered by 3:30pm EST ship the same day.
- **Stocking programs:** Bonded inventory agreements and blanket purchase orders with scheduled releases help manufacturers plan around recurring component demand.
- **Alternative component sourcing:** Identifying and validating equivalent components when original parts have long lead times or availability issues.

## Real Savings Aren’t Just in the Price Per Part

Automated Wiring Systems (AWS) faced long supplier lead times that threatened its customer deadlines. ElectroShield worked with AWS to identify and validate equivalent connectors that met its application requirements.

The alternative components reduced connector costs by **as much as 25% on certain components**.

To help AWS manage its ongoing purchasing needs, ElectroShield also established a blanket purchase order with scheduled releases based on its usage forecast.

This addressed two separate challenges: finding cost-effective replacement components and establishing a more predictable purchasing schedule.

[Read the AWS case study](https://www.electroshield.com/case-studies-AWS).

## Kitting and Assembly: More Than a Time-Saver

Component sourcing costs extend beyond the price of individual parts. Purchasing, receiving, organizing, and preparing components for assembly all require time and labor.

ElectroShield offers custom kitting, cable assemblies, packaging, strip packaging, and barcode labeling to help manufacturers coordinate these activities.

Depending on the application, consolidating components into kits or preparing them for production can reduce internal handling and simplify the assembly process.

## Plan Component Purchases Around Your Production Needs

Reducing component sourcing costs isn't always about finding a lower price per part. It can also mean reducing repeated purchasing work, planning around manufacturer lead times, and identifying suitable alternatives before a shortage affects production.

For manufacturers with recurring component demand, ElectroShield offers stocking programs built around part numbers, estimated annual usage, and delivery schedules.

These arrangements include bonded inventory agreements, where agreed stock is held on our shelves at a locked price, and blanket purchase orders with scheduled releases.

**Learn more:** \[Circular Connector Stocking Programs: Bonded Inventory vs. Blanket POs\]

If you're purchasing the same components throughout the year, send us your part numbers and expected annual usage. We'll help develop a stocking arrangement around your production requirements.

Contact your ElectroShield sales representative, email [**Sales@ElectroShield.com**](mailto:Sales@ElectroShield.com), or call **(800) 662-1054**.

## About the Author

Margi is a seasoned sales professional who has been a part of the ElectroShield sales team since 1996. She was promoted to the Sales Manage role in 2015. Her extensive knowledge of the electronic connector market makes her the go-to source for customers looking for the precise product to meet their stringent performance specifications and operating conditions. Connect with Margi at [margig@electroshield.com.](mailto:margig@electroshield.com)

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