We already have a stressed supply chain, and this certainly will add more pressure. The biggest thing we’re monitoring is the supply chain. We do not have any employees living in Russia or Ukraine, and prior to the Russian attacks on Ukraine, Digi-Key was doing relatively little business in Russia, due to compliance policies. We stand with the people of Ukraine and are eager to see de-escalation soon.įrom a business standpoint, it’s been a very low impact for Digi-Key. Our first thoughts are with family members and friends, as well as some former colleagues that we have who are impacted by Russia’s invasion of Ukraine. Q: Is any Digi-Key business at risk with the conflict happening in Eastern Europe?Ī: It’s heart-breaking to see what’s happening in Ukraine right now. The biggest challenge we’ll face this year is keeping those three big promises – and if we can do that, we’ll have a fantastic year! And we’re also focusing on our commitment to our employees to keep them safe and healthy, both our people on-site, and those working remotely. We’re trying to keep commitments to our suppliers that our forecasts are accurate and customers will purchase the inventory and not cancel orders. We’re trying to keep commitments to our customers that we’ll expedite and get product from suppliers as quickly as possible. Inventory flow is the biggest challenge for us, and there are a lot of commitments we’re doing our best to keep. Q: What challenges are you anticipating & addressing this year?Ī: We’re very fortunate to have suppliers that understand the importance of getting product to the engineers and makers that Digi-Key serves. In March 2022, we received the most product that we have ever received in the history of the company, and Q1 2022 was the highest receiving quarter we’ve ever had, so we are making meaningful progress on continuously increasing our inventory. While keeping inventory in stock is still a challenge, it is stabilising. Gradually, we’re seeing some lead time trends improve from some suppliers however, within semiconductors, lead times for many components remain at 40+ weeks. Specific components still remain a big challenge, however. ![]() Q: What are your observations & predictions for the rest of the year?Ī: Our key observations are that customer demand remains extremely strong across all industries and verticals, and we expect that to continue throughout this year and into 2023, as customers catch up, and then perhaps build some safety stock. By every measure we look at, we are just as busy, if not busier, than last year. Our bookings are up more than 25% over last year, as is quote activity, shipments going out the door and customers searching the website. Through the first quarter of 2022, every single transaction driver of the business for Digi-Key was high. We wrapped up 2021 growing faster than Digi-Key has ever grown in its history – we had a 65% growth rate last year. Ī: It has been a very busy year – as busy as last year, if not more so. And sign up to receive your own copy each month. ![]() This Q&A was originally featured in EPDT's H2 2022 Electronics Distribution supplement, included in the July 2022 issue of EPDT magazine. In this Q&A, EPDT talks to Ian Wallace, Digi-Key VP of Americas & EMEA Business Development, who provides an update on how the firm is faring in 2022, what he's looking forward to & new developments that electronic component distributor, Digi-Key is working on to better serve customers… ![]() ![]() Digi-Key PDC Expansion 2022 is already well on its way to being another strong year for the electronics distribution sector, despite tight supply from component manufacturers & continued supply chain disruptions.
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