Startup component broker ADIOS* has won its first £1 million order alongside a major product expansion. The company was formed last year following supply chain changes and significant price increases. It operates as a separate trading company within Anglia.
ADIOS focuses on semiconductor products. “We can supply every semiconductor part on a PCB,” says Anglia Marketing Director John Bowman. The company is offering a wide range of analog and embedded parts, MCUs, and FPGAs.
ADIOS works to a different model from traditional component brokers. It will hold stock and it will not indulge in spot pricing. Inventory is already in place at ADIOS’s UK headquarters.
For Bowman it is about customer choice. “They are being squeezed by semiconductor mergers and acquisitions, and decreased distribution visibility,” he argues.
Adds ADIOS CEO, Steve Rawlins: “I want to make it clear that ADIOS was launched in response to customers’ requests. I have looked at outsourcing many times, and always decided against, but now the supply chain has changed and I can see a role for responsible outsourcing. We are not chasing the same back-to-back business as the majority of other brokers. We are looking to service those customers who are being let down, typically, by certain big US semiconductor makers who have significantly increased prices while slashing their distribution networks and restricting customer choice.
“The very big fulfilment houses and former ‘catalogue’ distributors cannot offer the customer service that we can. More importantly, the European price is much higher than in Asia, so we can offer customers significant savings. The million-pound order is a real endorsement of our approach.
“Pricing is the big thing. We can offer product at up to 30% lower prices on like for like products.”
ADIOS is also enabling price stability for customers. “For example if a customer orders a thousand parts, we will buy three thousand to give the customer assurance of supply and pricing.”
Bowman puts the broker market at $500 million in down markets and plus $1 billion when allocation starts to impact the semiconductor market.
On those numbers he says Anglia is targeting a £50 million turnover in three to four years.
ADIOS is sourcing product from suppliers in China where team members have made numerous visits to identify potential suppliers.
“Lots of work went into a strict selection process,” explains Debbie Marriott, Supply Chain Manager. “We audited 40 companies, and from those selected 20 who met our criteria.”
Those selected underwent rigorous quality assurance checks, due diligence, and a face-to-face audit.
ADIOS has a method that effectively eliminates any chance of counterfeit products entering the inventory. Incoming parts are subject to thorough inspection, and ADIOS has invested in equipment from ABI Electronics, a specialist test and measurement equipment supplier.
*The IOS in ADIOS stands for Intelligent Outsourcing. Readers are invited to surmise on the origins of AD.
