JLCPCB service enables consumers to prepay for the parts and buy the required components in advance to ensure sufficient components are ready at any time. Meanwhile, they can immediately arrange the supply of parts through the advance sale for their electronic products. The parts can be saved in their own library, safe and easy.
The pre-order service accumulates different demands from people around the globe, making parts requirements clearer and easier. Therefore, the company cooperates with customers to help complete orders, the order in large quantities, help win more discounts, and create maximum value and benefits for customers.
The shortage of components caused panic purchases and the end result was component prices soared. Since 2020, the production capacity of components has been inadequate due to the epidemic globally. Hardware companies in various countries around the world have joined in races for component resources.
As the epidemic has caused more companies to enable employees to work from home, it has indirectly increased the demand for electronic consumer products sharply.
Strategy Analytics reported global consumer electronics market revenues to increase by 7% in 2020 News on February 4th, Strategy Analytics' latest research report "2014-2024 Global Consumer Electronics Market Forecast" pointed out that in 2020, strong consumer demand for home computers, tablets, and game consoles will promote consumer electronics Trade gains reached 358.5 billion dollars, an increase of 7% over 2019.
This indicates that the production capacity of components is insufficient, and the demand for terminal electronic products has increased daily, increasing component consumption. Due to insufficient production capacity, technology companies and the consumer electronics industry started a global search for components to ensure stable production and operation.
Together with the rise of the online education industry in 2020, many schools arranged for students to study at home, and the demand for educational electronic products also grew sharply. The insufficient supply of terminal products has caused many consumer electronics companies to join the ranks competing for components. This lack of supply has caused global electronic businesses to panic, and components have risen due to the situation, pushing prices higher. This has lead to the emergence of component pre-order services to reduce insecurity and assist in solving the global shortage.
A good PCB supplier is expected to have a stable supply foundation: replenishing goods in time when demand increases; inventory prepared even demand decreases.
We are facing a global component supply shortage, although every PCB manufacturer makes every effort to ensure that its SMT service is not affected in any way, things are always out of control. Global production capacity cannot keep up when the world is unstable, the reasons many from the global economy, the global political situation, the epidemic, etc. The shortage of components will continue. What should we do?
Therefore, pre-determining components and ensuring a stable supply is one of the ways to solve the problem. As a PCB manufacturer, it is impossible to estimate or correctly understand the component demands of each customer. Customers request parts in their account, it is a private library, requesting and saving parts in the personal account. They can then take them out when they have SMT order needs.
For JLCPCB, when they receive requests, they can understand which kinds of parts people demand. Meanwhile, when it accumulates many orders from various parts, they can have more negotiable advantages to help buy the parts from other parts suppliers, which provides a large discount for the entire purchase. This is the equivalent to a joint collaboration to complete a task. The component reservation can inform its customers' component requirements, providing accurate modelling and quantity. The company conducts global collection and purchase, and the entire purchase is highly discounted and simple.
Price discount is one of the advantages of this component pre-order service. Since it is purchased online, all prices are open and fair. Customers have a choice for buying after confirming the price of the components. The company also implements a policy of more refunds and less replenishment for the pre-ordered components, so there is less worry about whether payment is gone because a pre-order service failed. As global PCB companies offer a good service for price and quality, they can gain a lower cost for high-quality parts from global components suppliers. And also, we know the components from component agents or original manufacturers, there will be a corresponding purchase price. To protect their own interests, MOQ is a common method for components suppliers. Generally speaking, different purchase quantities have a corresponding purchase price. Only when the purchased quantity reaches the corresponding standard line will the price change. Component vendors will typically give larger customers more favourable prices, while SMEs or individual customers bear greater cost prices. Therefore, JLCPCB provides a platform for the collection of component requirements. When it reaches the larger MOQ of component vendors, the preferential strength will be even higher. Therefore, it is not difficult for the company to see that the pre-order service prices of its components are more favourable.
Customers can use the company's part pre-order service by logging in where they are offered Step 1: 'My Parts Lib', 'Order Parts' and 'New parts request'. Customers can then build their own parts library. Step 2 enables the user to check the guidelines to determine if there is a need to use the pre-order service'. In 'Step 3' they can confirm whether the component can be pre-ordered before placing an order. In Step 4, the customer orders the parts. During Step 5, customers then make payment for the products. After which, the customer is given 'Step 6: Confirmation' of their order. Customers can also make a new parts request. Once approved, they can then place their pre-order.
Article by Rebecca Chen, JLCPCB