Part shortage can cause production delays that translate into lost business opportunities. It refers to buying products in the spot market that are either temporarily unavailable through the standard purchasing channels (i.e. parts highly allocated due to production limit, shifts of requirements, carrying out new projects) or obsolete/EOL.

Manufactures approach the spot market when they have encountered (or are nearing) a line down situation. However, sourcing in the open market is time consuming and highly risky to procure faulty products, which is able to wreak havoc on manufactures’ bottom line.

With various spot-buy experiences and an integrated solution, Vadas is committed to meet and exceed customer demand and satisfaction through the below process:

1. The customer provides the shortage information with every detail, such as manufacture name, manufacture part number, quantity and date code restriction, to a Vadas Sales Manager.
   
2. A Vadas Sourcing Specialist works on the inquiry and turns in an appropriate result, using all kinds of methods through Vadas Real-time Global Inventory System.
   
3. The Vadas Sales Manager contacts the customer to quote spot market pricing, available quantity and lead time etc.
   
4. Upon acceptance of Vadas’s quotation, the customer issues a purchaser order to Vadas.
   
5. Vadas executes the order to pull in the part and keeps the customer posted about the delivery status.

Shortage Procurement Keys to Success
Successful shortage procurement demands each of the following:

1. Rapid notification The sooner that customer notifies its Vadas Sales Manager the more possible to locate stock and get optimized market pricing. The spot market is highly sensitive to shortages. The more brokers search for products the higher market pricing is driven.
   
2. Active communication Communicating with Vadas Sales Manager on the pricing and giving more feed back allows customer to have the most updated information. Besides, frequent communication helps to avoid potential shortages.
   
3. Quick response Time is of the essence in the spot market. Either the marketing pricing increases rapidly, or the only stock is allocated to others. Quick decision makers are in advance to access to the inventory.