Challenges Faced When Sourcing Power Supplies
Challenges Faced When Sourcing Power Supplies 
Power Supply Sourcing: Overcoming Challenges in Lead Times, Pricing, and Transportation
From a sourcing perspective, there are three key things that have impacted the market: lead times, pricing and inflation, and transportation costs. These areas have ballooned over the last couple of years, and this is particularly evident in the power supply space. We're joined by Paul Kopp, Director of Supplier Marketing for Power Products at Sager Electronics, to discuss the challenges and solutions available for professionals sourcing power supplies these days.
Lead Times
Power supplies are complex, with hundreds of components on the AC to DC side, so lead times are determined by the component with the longest lead time. When coupled with production and capacity constraints, purchasers are facing numerous problems.
"What we've seen is a situation where lead times typically would be eight to 12 weeks, then slowly crept to 15 to 20, to 24, to 26. Now we're seeing 40 to 52 and beyond. So it's been a challenge for customers," says Kopp. This challenge is especially difficult for those who were used to a 'just-in-time' mindset, now transitioning to 'just-get-me-product'."
Transportation
Transportation timelines have similarly stretched. Where transportation from Southeast Asia to Long Beach used to take four to six weeks, it now stretches to 12 to 16 weeks. Authorizing air shipments as an alternative isn't easy either, as prices have tripled or quadrupled, making it cost prohibitive. Power supplies are typically heavy and bulky, further increasing costs.
Is Help on the Way?
Despite the challenges, Kopp is optimistic about the future. He believes that transportation issues will start to get better within the next year, which will allow for improvements in other areas as well. However, the built-up demand will take time for suppliers to catch up to.
"I do think what we'll see first is the transportation issues start to get better. I think once they get better, then we'll start to see improvements in other areas. You know, that's assuming we don't have another variant. And that's not something else that makes us take a step back. But I do think, over time, the supply demand fluctuations will start to smooth out a little bit," he says.
Currently, there's so much built-up demand that it's going to take a while for suppliers and their suppliers to really catch up.
Watch the full video to learn more about the challenges the industry faces.
What You'll Learn:
- The effects of tariffs
- How buyers are responding to new constraints
- Why warranties matter in the power supplies space
- Safety considerations when sourcing power supplies
- How Sager's customer support and experts can help alleviate some of the current challenges
