Supply Chain Connect

From Tariffs to Digitalization: Transformation in Electronics Distribution

10 snips
Jun 9, 2025
Dave Doherty, President of DigiKey, dives into the evolving landscape of electronic component distribution. He discusses how AI and digital transformation are revolutionizing the industry, enhancing customer interactions with smart filtering technology. Doherty sheds light on how global disruptions, including tariffs and COVID-19, are driving innovation and reshoring in manufacturing. He also highlights sustainability challenges and the importance of data transparency in navigating future trends, providing an exhilarating look at the industry's path forward.
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INSIGHT

Semiconductor Supply Stabilizing

  • The semiconductor component supply is stabilizing after a long period of imbalance caused by disruptions.
  • Microcontrollers and programmable logic parts are among the first to show signs of recovery.
ADVICE

Design Flexibility and Transparency

  • Design products with flexibility to avoid risks of single source proprietary parts.
  • Use distributors' transparent data on part availability and alternatives to insulate against shortages.
INSIGHT

Digital Integration Accelerates Transparency

  • Digital integration has greatly accelerated the real-time sharing of inventory and pricing data via APIs.
  • Lower barriers to connecting customers, distributors, and suppliers digitally improve transparency and responsiveness.
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