Magnetic Component Alternate Source Strategies

Introduction

Due to the complexities of circuit design and the highly customizable nature of magnetic components, such as transformers and inductors, they are often overlooked by OEMs when it comes to alternate or second source strategies. Magnetic components can be difficult to specify in the first place, and once a supplier is in place there is often a concern that bringing in a second source could be a time-consuming and expensive process.

The consequences, however, of relying on a single source supplier for a critical magnetic component (a custom or semi-custom device not available off-the-shelf from multiple sources) can leave OEMs in a vulnerable position. There are three possible sources of problems:

• Competitive Prices -- when you sole-source the supplier knows there are barriers to substitution that diminish your negotiating strength.
• Responsive Service -- when you sole-source the supplier knows that you will wait because you have nowhere else to go if there is a problem.
• Delivery Lead Times -- when you sole-source you really can't be sure that you are receiving the shortest lead-time available.