Chip shortage boost for Mouser

May 14, 2021 // By Nick Flaherty
Chip shortage boost for Mouser
Mark Burr-Lonnon and Graham Maggs at Mouser Electronics talk to Nick Flaherty about the boost from the current chip shortages

The chip shortage has been good to Mouser Electronics as a global distributor even in the midst of a global pandemic.

“Our business has gone through the roof and it seems like there’s no ceiling,” said Mark Burr-Lonnon, Senior vice president of EMEA, Asia and Global Service at Mouser Electronics (above, right). “Globally bookings are up 50 percent and billings up 32 percent, with European billings up 48 percent. Some of that is due to laying in a lot of inventory, and the risk of allocation and long lead times helps distribution. But it’s also the whole move to the digitalisation of the supply chain that is also driving the growth.”

Mouser is part of the privately-held TTI group, which has also seen significant changes in the last few months. In February Paul Andrews, TTi’s founder and CEO passed away, with chief operating office Mike Morton taking over. The strategy of the group has been to provide inventory and supply chain management, particularly for semiconductors where Mouser competes with  Digi-Key, Farnell and Electrocomponents (RS).

Inventory

“The TTi group view is that inventory is very important,” said Burr-Lonnon. “We’re not on the stock exchange where we don’t have to report quarterly figures. This means we can do the right thing to make sure we have the right inventory at the right time – we’ve heavily invested hundreds of millions of dollars in extra inventory in recent years so we were well prepared. We had $800m on the shelf and $500m on order, and our inventory is based on being wide, its there for everyone.”

Mouser deliberately took a different approach to two of its competitors. “Other companies heavily invest in sales people - we haven’t done that. We need to bring people to the inventory and if there’s no inventory that’s not good so when an engineer is doing a new design, we make sure we have the widest selection as he’s

Picture: 
Mark Burr-Lonnon (above, right) and Graham Maggs at Mouser Electronics

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