By Marie-Pierre Ducharme, Vice President, EMEA Marketing & Business Development, Mouser Electronics
This article originally appeared in the Jan/Feb issue of Procurement Pro.
The constantly evolving landscape of global technology means companies must accurately predict future trends in order to take advantage of new market opportunities and maintain ongoing operations.
New trends can drastically impact the volume and types of components that are required, so for buying teams, ensuring a reliable component supply from development through to a product’s ultimate end-of-life is crucial.
Making accurate predictions is incredibly tricky, yet to ensure any project is successful, buying teams and engineers have to rely on both their own predictions being accurate, as well as those made by electronic distributors. So, how can buying teams ensure that both their own forecasts are on target and that they select the right distribution partner to ensure a reliable component supply?
Identify trends to project demand
Predictions must be grounded in solid foundations when trying to understand future market dynamics. Factors such as historical data, market analysis, and incoming technological advancements can all provide the basis for understanding future demands.
A prime example of this can be seen during the introduction of the Matter protocol. When introduced, the technology’s ability to reduce barriers in smart home connectivity was predicted to boost smart home device sales, and this prediction has largely come true.
For manufacturers of smart home devices, Matter’s introduction created an incoming demand for certain key components, such as communication modules compatible with Matter. At Mouser Electronics, we addressed this, alongside our component suppliers, through new component introductions, as well as dedicated knowledge resources that aided understanding of the Matter protocol.
To enhance the reliability of their predictions, buying teams must understand the underlying reasons behind them. High-profile failures of electronics products serve as stark reminders of the importance of robust answers to the questions of ‘Why will this succeed?’ and ‘Why will this fail?’
Strong predictions rely on clear justifications, which help companies anticipate buying trends and optimise supply chain management. In the case of Matter, there was a clear demand for smart home technology, but consumers needed simpler interoperability so that Matter stood a strong chance of succeeding.
Identifying market peaks and troughs
It is critical for companies designing electronic products to adopt a comprehensive approach to trend analysis. This involves not only identifying the trend but also analysing its potential benefits and risks, including possible disruptions to the supply chain.
If a trend involves technology adapted from another application, existing data can forecast market progress and the key electronic components that will be needed more accurately. For instance, the adoption of touchscreens in industrial, medical, and automotive human-machine interfaces (HMIs) was preceded by their initial popularisation through consumer smartphones.
However, forecasting substantial technological shifts, such as the transition from internal combustion engines to electric vehicles (EVs) or the widespread adoption of artificial intelligence (AI), presents significant challenges for the supply chain. These larger shifts can be rapid or gradual and are often fraught with uncertainties, requiring engineers and buying teams to remain agile and adaptable.
As buying teams strive to enhance the accuracy of technology trend predictions, several methodologies can be employed. Firstly, comprehensive market research is essential. This includes analysing historical data, conducting surveys, and monitoring industry publications to identify emerging trends. Companies can develop informed forecasts for various influencing factors by synthesising this information.
Secondly, leveraging advanced analytics and AI can significantly enhance predictive capabilities. By utilising data-driven approaches, teams can uncover hidden patterns and correlations that may not be immediately apparent through traditional analysis methods. For instance, AI algorithms can process vast amounts of data to identify trends in consumer behaviour, supply chain fluctuations, and market conditions, ultimately enabling more accurate predictions.
Moreover, scenario planning is another valuable tool for companies navigating uncertainty. By developing multiple potential scenarios based on various assumptions, companies can better prepare for different outcomes and adjust their strategies accordingly. This flexibility is crucial in an everchanging technological landscape where unforeseen developments can quickly alter market dynamics.
Ensuring a resilient supply chain
Strategies to predict market trends will only go so far as to help mitigate the risk of disruption; total supply-chain resilience also depends on electronic distributors. At Mouser Electronics, our approach centres on building strong relationships with both customers and leading suppliers, while also ensuring we’re ready with new product introductions (NPIs) to meet the latest trends.
Our close collaboration with more than 1,200 manufacturers keeps us informed about the latest trends, including significant developments that could simultaneously reshape several industries. This means we can more quickly and accurately introduce electronic components capable of addressing emerging trends across industries, including automotive, medical, industrial, and many more.
Maintaining a close relationship with manufacturers also enables us to better identify and respond to potential market disruptions, ensuring we remain ahead of the curve in meeting supply chain demands and minimising the impact on our customers.
Furthermore, as one of the industry leaders in NPIs, we are always expanding our product line card. This strong focus on NPIs guarantees that we can quickly provide engineers and buyers access to the latest innovations while continuously expanding the range of choices available. This strategic and proactive approach helps to ensure our supply chain is ever-evolving, just like the markets we serve, ensuring Mouser is positioned as a reliable supplier for any future demands.
Conclusion
Leveraging technology trends for accurate component selection and strategic supply chain management requires a multi-faceted approach. Teams must ground their predictions in solid data, understand the underlying reasons behind trends, and actively engage with suppliers and customers to enhance market appreciation.
Professionals can confidently navigate future market dynamics by aligning R&D efforts with product lifecycles and employing advanced analytics and scenario planning, while electronic distributors can remain proactive through industry collaboration and by diversifying and reinforcing their product range.
As technology evolves, the ability to accurately predict trends and manage supply chains will be more critical than ever. By working closely with leading electronics manufacturers to introduce new products, Mouser is dedicated to supporting buyers and engineers, addressing intricate supply chain challenges and fostering innovation in their various fields.
