With the rapid development of the electronic industry chain, the competitiveness of domestic connectors is continuously improving, and their price trend has become an important reference factor for corporate procurement planning. This article will take the well-known connector brand JAM (Japan Automatic Machine Co., Ltd.) as a starting point to discuss the impact of price changes of domestic connectors on procurement strategies, and provide insights by combining actual products and supply chain situations.
An Overview of JAM Brand and Product BasicsJAM boasts over 90 years of historical accumulation, deeply rooted in the fields of connectors, automatic crimping machines, precision crimping machines, and provides extensive services to the automotive electronics and electronic manufacturing industries.
In terms of connector products, it offers various types, including: board-to-wire, board-to-board, wire-to-wire, terminals, high-frequency connectors, FFC/FPC, etc. For example:
●JC series internal PCB connectors: 2.5mm spacing, can directly mount multiple terminals to PCB, rated voltage 250V, rated current 3A, compatible with straight insertion and right-angle installation methods.
●JB series internal connectors: 2.0 mm spacing, 2A current rating, suitable for higher density PCB layout scenarios.
In addition, the stepped pricing of JAM products can be seen on the authorized distribution platform DigiKey: for example, the SVK series connectors have a higher unit price when the quantity is small, which will significantly drop when purchased in bulk (such as $0.17 for 1, $0.092 for 1000).
The trend of domestic connector price changes and its impact on procurement plansThe price gradient effect is pronounced
Compared to imported brands, domestic connectors generally have a significant price advantage, but they are still affected by factors such as raw material costs, exchange rate fluctuations, and manufacturing efficiency. From the price data of JAM products on DigiKey, it is evident that an increase in quantity leads to a significant decrease in price, and this "quantity advantage" is particularly crucial for the procurement budget of domestic alternative solutions.
Significant results from bulk procurement
For procurement, planning the procurement batches is particularly important. If a company expects a certain type of connection to be frequently used, by increasing the procurement quantity, not only can a lower price be locked in, but also the risk of cost increase due to future supply chain fluctuations can be reduced.
Price fluctuation risk
The price of domestic connectors may also fluctuate with the market. Factors such as the rise in raw materials like copper and plastics, increasing labor costs, or international trade friction can all lead to a short-term price increase. The procurement strategy should set up a price monitoring and adjustment mechanism to ensure that the budget meets the actual needs.
Three, suggestions for improving the procurement plan strategyDevelop bulk procurement grading strategies: divide based on usage rhythm into basic inventory and additional procurement orders to achieve optimized unit price and reasonable capital allocation.
Establish a price fluctuation warning mechanism: Maintain close communication with the supply chain, track the market trends of raw materials, predict price changes, and adjust the procurement timing in a timely manner.
Evaluate the cost-effectiveness of domestic substitution: Compare the price and performance of the JAM original products with domestic solutions, assess the cost-performance advantages, and ensure that the substitute products meet both technical and price requirements.
4. Price Lock-in Collaboration Agreement: Discuss annual or quarterly price agreements with suppliers to lock in costs and reduce budget instability caused by market fluctuations.
The reasonable control of domestic connector prices is closely related to the optimization of procurement plans. By learning from JAM's product pricing and bulk purchasing gradient advantages, domestic suppliers can develop more flexible procurement strategies, which can reduce costs while ensuring stable supply. This will greatly enhance the supply chain resilience and overall competitiveness of the enterprise.
If you are interested in the domestic substitute products of this brand connector, or have procurement needs, or have production or sales channels for related domestic substitute products, and wish to cooperate or communicate in depth, welcome to contact us ——
Manager Zhang (18665383950, same WeChat number)Looking forward to working with more industry partners to build an efficient and stable procurement system.
