Suggestion: Theia component sharing program

larryg1do

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It’s also possible that other companies are buying them for a premium when available jumping ahead in line.
 

Heywood

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It’s also possible that other companies are buying them for a premium when available jumping ahead in line.
In my world…. If a larger company wants something even faster….. they buy the company and put themselves at the top of the que. Sell it when they’ve got what they needed… or hang in to it for next time.

Happens more than you think in the Oil and Gas sector. But it, make the original owners employees.
 

elantra04

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One thing I am curious about is…

If Radenso really did expect to ship last year, that means they ordered the parts last year. Last year the lead times were not a full year, they would have at least been in the front part of the line. I don’t understand how they haven’t gotten parts if they really ordered them last year. Worst case, shouldn’t they have them very soon? It’s not like they just placed the order a month ago….

This question has been asked numerous times…
 

Lars36

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This question has been asked numerous times…
Yes asked but did we receive is the question inquiring minds want to know. 🤔
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Screenshot_20210620-154752_Chrome.jpg

This is what I tried to post once before but was told it's worthless by @sdrawkcaB .
He can call whenever he wants worthless.
 
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sdrawkcaB

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This is what I tried to post once before but was told it's worthless by @sdrawkcaB .
He can call whenever he wants worthless.

@Lars36, for context and in the interest of transparency, here's one of the posts I was commenting on when I said I felt it was worthless:

Update.
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Update.
Post automatically merged:


Damn it, trying to download a story about the only chip maker in the world and it would NOT download 😐 Errr

Here's another one:



🤷‍♂️
 

gangster123

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Speaking of compnents: How long will it take to actually assemble one of these once parts are available? is it all automated/robotic? Will every unit need calibration? A QC check of every unit at first? I have too much time on my hands.
 

Jon at Radenso

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Speaking of compnents: How long will it take to actually assemble one of these once parts are available? is it all automated/robotic? Will every unit need calibration? A QC check of every unit at first? I have too much time on my hands.

Assembly is really fast since it's all automated except for screwing some things together. The units do not need calibration but there are QC checks.
 

Randy at Radenso

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samq45

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This question has been asked numerous times…

The answer is that the big fish have stopped all the smaller companies from getting their chips. The big customers agreed to price changes and those orders from the largest customers are getting filled first. If a customer accounts for 30% or more of the business, they will get served first and inventory orders will be allocated from the smaller company to them.

If the company that represents 3% of my sales is unhappy and eventually moves to another supplier - I can live with that. But if the company that represents 30% of my sales moves their business elsewhere - I am pretty close to being out of business.

It did not matter when you ordered if you represent a small order. All those orders were bumped to continue the supply to the best customers.

Its not difficult to understand that with limited availability the MFGs and Suppliers of the chips are both maximizing their profits and taking care of their core group of customers - there is nothing the small companies can do.
 

elantra04

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The answer is that the big fish have stopped all the smaller companies from getting their chips. The big customers agreed to price changes and those orders from the largest customers are getting filled first. If a customer accounts for 30% or more of the business, they will get served first and inventory orders will be allocated from the smaller company to them.

If the company that represents 3% of my sales is unhappy and eventually moves to another supplier - I can live with that. But if the company that represents 30% of my sales moves their business elsewhere - I am pretty close to being out of business.

It did not matter when you ordered if you represent a small order. All those orders were bumped to continue the supply to the best customers.

Its not difficult to understand that with limited availability the MFGs and Suppliers of the chips are both maximizing their profits and taking care of their core group of customers - there is nothing the small companies can do.
Do you have a link that supports this? Do you have first hand experience with this? I’m curious to read more how the larger companies’ orders are taking priority over relatively smaller orders even when the smaller orders are ahead in the queue. This doesn’t seem to be what’s happening with some of the larger automobile parts suppliers.
 

MikePA

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Its not difficult to understand that with limited availability the MFGs and Suppliers of the chips are both maximizing their profits and taking care of their core group of customers - there is nothing the small companies can do.
Yes, please post a link that explains the law of supply and demand. :rolleyes:
 
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elantra04

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Yes, please post a link that explains the law of supply and demand. :rolleyes:
The “law” of supply and demand has nothing to do with order prioritization. There are huge manufacturers that put in JIT orders that are now out of luck running without parts because the chip suppliers are working through the backlog of orders. However, I would be interested in learning more about any stories/articles where sources are confirming that they are being skipped in favor of large manufacturers.

And there’s no need to be disrespectful.
 

Heywood

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The answer is that the big fish have stopped all the smaller companies from getting their chips. The big customers agreed to price changes and those orders from the largest customers are getting filled first. If a customer accounts for 30% or more of the business, they will get served first and inventory orders will be allocated from the smaller company to them.

If the company that represents 3% of my sales is unhappy and eventually moves to another supplier - I can live with that. But if the company that represents 30% of my sales moves their business elsewhere - I am pretty close to being out of business.

It did not matter when you ordered if you represent a small order. All those orders were bumped to continue the supply to the best customers.

Its not difficult to understand that with limited availability the MFGs and Suppliers of the chips are both maximizing their profits and taking care of their core group of customers - there is nothing the small companies can do.
I can’t believe that this actually has to be explained to some people, after this long of a time and various posts.

Either their trolling or just naturally …… I’ll
leave it up to the mods.
 

elantra04

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I can’t believe that this actually has to be explained to some people, after this long of a time and various posts.

Either their trolling or just naturally …… I’ll
leave it up to the mods.
Has there been confirmation that customers with earlier smaller orders are being skipped in favor of customers with later larger orders? That seems to fly in the face of many large manufacturers who placed recent orders for parts and can’t get them filled because the parts suppliers are working through the backlog of orders. I’m not trying to start an argument here. Just was curious as to whether he was referring to a published article or first hand knowledge.
 

MikePA

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The “law” of supply and demand has nothing to do with order prioritization.
Yes, it does.

When supply is low and demand is the same, or higher, the resource has to be rationed and the supplier determines how they will ration.

However, I would be interested in learning more about any stories/articles where sources are confirming that they are being skipped in favor of large manufacturers.
I highly doubt any supplier will admit their rationing procedure involves keeping their bigger customers happy at the expense of their smaller customers.

And there’s no need to be disrespectful.

This is a particularly rich comment. 😆
 

elantra04

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Yes, it does.

When supply is low and demand is the same, or higher, the resource has to be rationed and the supplier determines how they will ration.


I highly doubt any supplier will admit their rationing procedure involves keeping their bigger customers happy at the expense of their smaller customers.



This is a particularly rich comment. 😆

Again, this may be occurring but I haven’t read anything yet from smaller customers complaining about being skipped in line in favor or later placed larger orders. And, the fact that very large customers are having difficulty getting parts so much so they have to turn off their assembly line, seems to contrast with this “common wisdom” of the part supplier choosing to honor later placed large orders.
 

bluehemi

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samq45

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Has there been confirmation that customers with earlier smaller orders are being skipped in favor of customers with later larger orders? That seems to fly in the face of many large manufacturers who placed recent orders for parts and can’t get them filled because the parts suppliers are working through the backlog of orders. I’m not trying to start an argument here. Just was curious as to whether he was referring to a published article or first hand knowledge.
Yes there has been some of this communication - Also we know that other larger customers have been getting at least partial orders for items with a PO date that is later that the small company orders. Sometimes they just say we dont know when your product will be ready to send to you - other times they outright state I am filling orders for the bigger companies, I suggest you look elsewhere.

I have several clients and some owned business where the suppliers said they are focusing on the larger orders for their best customers and in some cases we were told the price quotes for the items are no longer valid and the pricing can change daily or hourly. Some said don't contact us, we will contact you when the boards/chips/components are ready - or we are given a picture showing the ports in China extremely backlogged as a response.

No one said the large manufactures were getting everything they ordered, they are certainly not either - but they are getting at least some items preferentially over the smaller guys. Keep in mind most of the big companies went to Just in Time MFG years ago and they now need to make a change to have inventory and will spend millions to keep the production lines going - small companies cannot afford to just throw money at the issue and hope they get inventory.

I dont blame the suppliers or Chip Mfgs at all - that is the way business goes.
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Again, this may be occurring but I haven’t read anything yet from smaller customers complaining about being skipped in line in favor or later placed larger orders. And, the fact that very large customers are having difficulty getting parts so much so they have to turn off their assembly line, seems to contrast with this “common wisdom” of the part supplier choosing to honor later placed large orders.
So because you did not read it somewhere, that means it cannot be happening? It not really news worthy and anyone involved with supply side management knows this is the first thing a supplier will do to maximize profits (its part of the agreement they make with the large companies as a general rule).

Its actually in a lot of the contracts, if Samsung cannot get the chips as promised, then they are harmed and cannot make the sale timely and you will see back charges or liquidated damages in those contracts for missing a quantity, quality or date. Small companies do not get those contracts for the most part.

So there is not really skipping that has occurred. The contract with the large companies say they get product first, regardless of when it was ordered - they now can make more and have little or no back charges if they have the force majeure clauses in the contracts. The small companies will still be there to order in a few months, so its not a lost sale.
 
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elantra04

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Yes there has been some of this communication - Also we know that other larger customers have been getting at least partial orders for items with a PO date that is later that the small company orders. Sometimes they just say we dont know when your product will be ready to send to you - other times they outright state I am filling orders for the bigger companies, I suggest you look elsewhere.

I have several clients and some owned business where the suppliers said they are focusing on the larger orders for their best customers and in some cases we were told the price quotes for the items are no longer valid and the pricing can change daily or hourly. Some said don't contact us, we will contact you when the boards/chips/components are ready - or we are given a picture showing the ports in China extremely backlogged as a response.

No one said the large manufactures were getting everything they ordered, they are certainly not either - but they are getting at least some items preferentially over the smaller guys. Keep in mind most of the big companies went to Just in Time MFG years ago and they now need to make a change to have inventory and will spend millions to keep the production lines going - small companies cannot afford to just throw money at the issue and hope they get inventory.

I dont blame the suppliers or Chip Mfgs at all - that is the way business goes.
Post automatically merged:


So because you did not read it somewhere, that means it cannot be happening? It not really news worthy and anyone involved with supply side management knows this is the first thing a supplier will do to maximize profits (its part of the agreement they make with the large companies as a general rule).

Its actually in a lot of the contracts, if Samsung cannot get the chips as promised, then they are harmed and cannot make the sale timely and you will see back charges or liquidated damages in those contracts for missing a quantity, quality or date. Small companies do not get those contracts for the most part.

So there is not really skipping that has occurred. The contract with the large companies say they get product first, regardless of when it was ordered - they now can make more and have little or no back charges if they have the force majeure clauses in the contracts. The small companies will still be there to order in a few months, so its not a lost sale.
Great explanation. Thank you.
 

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