Tips for Hardware Startups while buying Components
Are you worried about component sourcing for your hardware startup? In this blog I am going to share few tips to hardware startups while buying components. Since the technology is growing vast, many entrepreneurs are entering into hardware electronic manufacturing businesses. Supply chain inspection, verification of components, quality check ups are too much for a startup.‘Startup accelerators’ are here to help. Few of them are PCH international, Dragon Innovation, HAXLR8R and Lemnos Labs.
A hardware startup should always be aware of concepts like counterfeiting and frauds. While ordering components, always look out for branded and well known vendors (Component Manufacturers). The benefit of it is there are almost zero chances of counterfeiting and services you get are also good. One major problem with these big CMs are that they already have tons of orders to be fulfilled so the lead time given to startups are big.
Now comes the crucial part of finding good vendors. One should always try to avoid Traditional Brokers since it becomes very expensive and Startups cannot afford such prices. There are many risk factors while buying components from traditional brokers, etc. Brokers are the intermediates who buy the components from open component market and component manufacturer, distributor, supplier, etc.
- Authorized sources: Components should be bought from Authorized sources. Buying directly from Manufacturer is a good option. But if you are using other sources like distributor or broker, always check for Authorization.
- Distributors: Component distributors are of two types; Licensed and Unlicensed. It is always recommended to buy from Licensed distributors only. ISO 9001:2008, AS5553 and IDEA-STD-1010B are few certifications to ensure there is no fraud case.
- Traceability is very important to access the components purchase reports. The facility of traceability provides all the information about the product manufacturing. Traceability is required only when the components are bought from brokers. A startup should always ask for Traceability option/ feature while ordering from brokers.
- BOM: While distributing BOM to different component manufacturers or distributors, always follow certain Rules. BOM should always be generated by experts.
- Negotiation: While negotiating with Component Manufacturers or brokers, polite and point to point conversation is necessary. Negotiation should be conducted by Management of startup. Before negotiation, it is important to first have a research on market prices and deals. Always ask for credits and other facilities.
- Ready to Ship: Along with other things such as Authorized supplier, Licensed distributor, Traceability, Startups should consider buying from sources who can provide ready to ship inventory. Since you are a startup and want to grow fast, you cannot afford waiting for a long time for long lead times!
Startups should follow these few tips and keep on reading different blogs and articles and implement what ideas others have shared. You can always buy Verified, Ready to Ship and Traceable components with 100% warranty of Traceability from iodParts. You can follow us on Facebook, Twitter and LinkedIn to get more such informational updates.