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ANSWERING 5 COMMON QUESTIONS ABOUT SUPPLYFRAME COMMODITY IQ

 

Supplyframe Commodity IQ is our answer to an ongoing issue in the global
electronics industry. When faced with supply uncertainty, extended lead times,
and historical shortages, how are leaders expected to make fast, profitable, and
informed decisions around their supply chain sourcing and procurement?

Commodity IQ provides an always up-to-date report across numerous categories,
detailing things like lead time analysis, pricing, supply and demand forecasts,
and much more. Join us as we dive deeper into some of these elements and provide
answers to commonly asked questions from both prospects and customers of
Commodity IQ.


5 ANSWERS TO COMMONLY ASKED QUESTIONS ABOUT COMMODITY IQ

In our discussions with both prospects and customers, several common questions
have risen to the surface around how we calculate and weigh lead times, as well
as clarity around industry partners, current subscribers, and our proprietary
metrics like the Demand and Design Index.

Here are answers to the five most commonly asked questions:

HOW DOES SUPPLYFRAME CALCULATE LEAD TIMES?

Supplyframe monitors and reviews published component lead times from over 600
million parts, across 180 global distributors and 27,000 suppliers. Our DSI
partners, which include commodity managers, market analysts, and industry
experts, review committed lead time changes based on direct sourcing events and
market analysis.

This analysis improves the accuracy of the published lead times, but also
identifies emerging trends within the dataset. We aggregate these lead time
changes to over 20 sub commodities and published any key shifts via our alerts
and through expert analysis within the report itself.

HOW ARE LEAD TIMES WEIGHTED BY SUPPLIER AND GEOGRAPHY?

We do not weigh lead times based on geography, but we do capture the supplier
lead times. When aggregating this into a sub commodity, we take the volume
weighted average lead time changes across multiple suppliers.

For geographical perspective, we automatically sort the top 10 geographies for
our DSI Demand Index, which provides a more accurate picture of demand changes
across the coming 3 months.

HOW DOES INPUT FROM 30 COMMODITY AND SOURCING PRACTITIONERS IMPACT THE ANALYSIS
FROM THE DSI NETWORK?

Our belief is that large scale data analytics and applied AI from the DSI
Network, combined with expert analysis and curated insights, provides the best
balance between human and machine intelligence. Our customers need both elements
to truly understand the global landscape, both in the moment, and into the near
future.

The Commodity IQ report also organizes all of this information by sub commodity,
allowing subscribers to obtain the intelligence they need in just a few clicks.

WHO ARE THE CURRENT SUBSCRIBERS TO COMMODITY IQ?

We do not share customer specific information, but are pleased to announce that
we have engagement from over 50 global manufacturers, which include major OEMs
in industries like Automotive, high tech communications, and industrial
equipment. We also engage with major EMS providers and key component suppliers.

Supplyframe’s Commodity IQ report has been highlighted in recent industry
coverage surrounding the ongoing component shortages, appearing in publications
like Reuters and the Wall Street Journal. The report initially released in Q2 of
2021, but has since seen significant demand and growth. We expect that interest
will continue to grow in the coming months as well.

WHAT IS THE DEMAND AND DESIGN INDEX METRIC IN COMMODITY IQ?

We recently highlighted this element of the Commodity IQ report in an article
detailing increased a 209% Demand Index growth for MCU and MPU component
categories. The Design and Demand Index represent data from billions of signals
and activities across the Supplyframe DSI Network.

We interpret these signals to identify patterns in both sourcing and design
cycles by examining activities like CAD model downloads, e-commerce transitions,
and other relevant activities.

DISCOVER A NEW APPROACH TO MARKET INTELLIGENCE

Supplyframe Commodity IQ provides the latest intelligence and insights for
industry leaders, capturing over $120 billion in annual direct materials spend,
and gathering data from 70+ vertical search and community websites. Combined
with data from over 500 electronics industry partners, our experts analysis
provides the information your organization needs to make smarter sourcing and
procurement decisions in the moment.

Click the button below to learn more about how you can become a subscriber to
Supplyframe Commodity IQ today!

Subscribe to Supplyframe Commodity IQ



BRADLEY RAMSEY


Articles: 102


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