Dealing with dynamic change and technological innovation
A Q&A with leading global independent electronic components distributor, WIN SOURCE, providing valuable insights into how the company responds to the challenges and opportunities facing the power electronics industry into the future.
PEW: Please can we start with a brief background on the company – some history, key milestones – the journey from launch to where it is today?
WS: Established in 1999, WIN SOURCE is a leading global independent distributor of electronic components with over 24 years of experience. The company began its journey in the electronics distribution field by opening its first retail and offline stores in Shenzhen, China. Over the years, WIN SOURCE has grown significantly, and in 2006, it began providing comprehensive supply chain services to local Fortune 500 companies. In 2015, to address the information asymmetry in electronic component procurement, WIN SOURCE launched Asia’s first overseas B2B e-commerce platform, WIN SOURCE Online Store (https://www.win-source.net/), dedicated to optimizing the electronics industry’s procurement chain. Following this, the company extensively expanded its international business department, establishing localized global business units to meet the growing needs of overseas markets. In 2021, the company achieved sales of $389 million, demonstrating rapid business growth and high market acceptance. By 2022, it ranked second among Asia’s top ten electronic component distributors as rated by SourceToday, with sales exceeding $613 million. In the most recent year of 2023, WIN SOURCE placed 18th in the global top 50 electronic component distributors list, further solidifying its leading position in the industry.
While continuing to expand its operations, WIN SOURCE also focuses on strengthening industry collaborations and has become an active member of several key industry associations, including ERAI and IPC, etc.. This strategy not only helps the company stay in sync with developments in the electronic components industry but also further consolidates its market leadership. Additionally, WIN SOURCE has obtained several high-standard international certifications, including ISO 9001 and ISO 14001, which attest to the quality of its products and services meeting international standards. Through continuous innovation in supply chain management technology and expansion of the global supply chain, the company has successfully opened doors to emerging markets and significantly enhanced its service capabilities in existing markets. Currently, the company has offices in multiple countries, including the USA, Germany, and Mexico, and plans to further expand its international footprint this year.
The journey of WIN SOURCE is filled with achievements, and the company remains committed to providing exceptional products and supply chain services to its customers, growing together with them, and advancing the development of the electronic components industry.
PEW: In terms of your product range, which covers a wide spectrum of components, including integrated circuits, discrete semiconductors, circuit protection, optoelectronics, sensors and transducers, connectors/interconnects, capacitors, and more. How do you ensure that the parts you procure are genuine?
WS: First of all, we have implemented a continuous maintenance quality management system to ensure effectiveness and drive process improvements. Our system complies with multiple industry standards, including AS9120B, ISO 9001:2008, ISO13485, ISO28000, ESD-S20.20, and IDEA-STD-1010-B.
Furthermore, we maintain a dedicated quality management team. This team conducts regular assessments to evaluate the ongoing suitability of WIN SOURCE’s quality system through internal audits and comprehensive quality reports. These assessments are based on audit findings, customer feedback, process performance, product compliance, and the status of preventive and corrective actions, as well as previous management reviews.
Integral to our commitment to quality assurance is our in-house inspection capability. Every component undergoes a meticulous inspection and is verified for its source by WIN SOURCE’s quality testing department. We employ advanced methods, such as 200x magnification, solderability testing, acetone verification testing, and more, before these components enter our inventory and are dispatched to end customers.
Additionally, we have developed WIN SOURCE’s unique quality control system, which includes packaging inspections, shipping label checks, visual product inspections, non-destructive testing, and strict adherence to precise environmental and humidity control. This compliance extends to our ANSI/ESD S20.20 handling processes, ensuring operational precision and efficiency.
Lastly, we place significant emphasis on supplier qualification control. Recognizing that the source of components directly impacts part quality, we consistently adhere to the ISO 9001:2008 management system. We maintain rigorous standards when selecting supplier partners, collaborating exclusively with high-standard distributors who meet our stringent supplier criteria. These partners include manufacturers, authorized distributor-resellers, OEMs, CMs, and reputable independent distributors. These partnerships reinforce the integrity of our robust supply chain.
We understand that product quality assurance is paramount because customer trust is our most valuable asset. We hope our customers can purchase WIN SOURCE products with 100% confidence. It’s not just about sourcing suppliers from Asia who can offer competitive prices and advantages; it’s about finding a partner that provides a comprehensive range of products, specializing in obsolete and hard-to-find component procurement, competitive pricing, and highly reliable quality to genuinely maintain the stability of our customers’ supply chains. This enables them to focus more on production research and development.
Our goal is to establish long-term partnerships, grow together with our customers, and provide enduring value to them. Therefore, choosing Win Source means selecting a trustworthy partner with diversified product offerings, competitive prices, and outstanding quality assurance, allowing you to concentrate on your core business with peace of mind.
PEW: You also promote yourselves as very much a solution provider, focusing on topics such as global sourcing, obsolescence management, cost control management, shortage control management, alternatives, and excess inventory management. Can you say a little bit about each in terms of the ways in which you can help end users address these issues?
WS: WIN SOURCE is committed to assisting clients navigate a variety of industry challenges with comprehensive solutions. By leveraging our strengths, we are able to provide efficient and reliable support to our customers. Firstly, we hold a significant advantage in global sourcing. By continually optimizing our supply chain systems and expanding global procurement channels, WIN SOURCE has established an extensive international supply network. We currently offer around 1.12 million SKUs of electronic components from over 3000 manufacturers, ensuring that we can provide the most comprehensive and high-quality products to our customers. Secondly, with our proprietary big data IT services platform, we continually enhance our online shopping platforms and supplier networks. We have also developed an in-house supply chain operation system that includes subsystems for sales, purchasing, warehousing, logistics, and marketing to support our global supply chain. This enables our customers to achieve intelligent BOM procurement, quickly secure shortage and obsolete inventory, and continuously optimize and reduce procurement and production costs. Additionally, WIN SOURCE’s professional team can provide alternative solutions to meet specific customer needs and help them find the best electronic component solutions when facing challenges. We also offer excess inventory buy-back services, solving the problem of inventory overstock for businesses and helping them optimize asset allocation.
By utilizing our global network, robust supply chain management, and unique comprehensive services, we offer a intelligent electronic component procurement solution, helping our clients maintain a competitive edge in a fiercely competitive market environment.
PEW: More generally, the whole supply chain seems to have some level of ongoing disruption – how do you see your role as a distributor changing to help customers with these issues?
WS: Amid the instability of the external environment and shifts in the international competitive landscape, global supply chains face ongoing disruptions. As a leader in the electronic components industry, WIN SOURCE recognizes that our role has evolved from a traditional distributor to a partner, enabling us to more effectively help our clients navigate these challenges.
In recent years, WIN SOURCE has focused on strengthening business continuity. We have developed strategic supply chain plans that enhance synchronization across all links of the supply chain, improve visibility and agility, and build resilience. This makes our supply chain more adaptable to geopolitical shifts and natural disasters. Furthermore, we continuously optimize our supply chain systems and expand our global sourcing channels, imposing stricter quality controls during times of change.
Our unique quality control system includes checks on packaging, inspection of cargo labels, visual inspections, and nondestructive testing, adhering to precise environmental and humidity controls, and following processes certified under ANSI/ESD S20.20. This stringent quality control minimizes the risk of our clients purchasing non-standard or inferior products. In summary, regardless of how the focus shifts within the electronics manufacturing industry, our company adapts promptly to meet the actual demands.
WIN SOURCE plays a crucial role in assisting our clients with supply chain challenges. Our profound understanding of the industry and our global influence enable us to anticipate and adapt to changes in industry trends. This helps our clients respond swiftly to the ever-changing market conditions, further enhancing our status as a trusted partner, ensuring that our clients maintain business continuity and competitiveness in the face of global supply chain challenges.
PEW: Especially when it comes to evolving their procurement and inventory management strategies?
WS: In formulating procurement and inventory management strategies, supply chain disruptions have become a norm that businesses must seriously consider. Faced with this ever-changing environment, companies need to implement flexible, forward-thinking planning and effective risk management strategies.
We have been undergoing a digital transformation in our business operations, integrating powerful technologies such as artificial intelligence, automation, and the Internet of Things into our business model and organizational changes. This includes the development of intelligent systems to enhance the coordination and transparency of business processes, thereby improving overall operational efficiency and elevating service quality from the ground up. Through our intelligent supply chain system, customers can quickly find the components they need, whether they are obsolete, EOL or regular parts, all while ensuring cost-effectiveness and quality assurance. These initiatives not only strengthen our capabilities but also contribute to supply chain security, helping to alleviate procurement pressures for our clients. Additionally, we have developed a intelligent
online platform, WIN SOURCE Online Store (https://www.win-source.net/), which integrates global supply chain data, enabling our customers to resolve their procurement needs in one place and focus more on technological innovation. Furthermore, we employ advanced inventory management technologies to provide effective inventory solutions and maintain a strict quality management process to ensure product quality. With a modern logistics management system and strategic geographical positioning, we shorten delivery times and ensure timely component delivery.
PEW: If the supply chain is a major industry challenge right now, so is the skills shortage. Are there any ways in which you can help customers address this issue, or is this outside of your company remit?
WS: At WIN SOURCE, we recognize the significant impact that skills shortages may have on our customers’ business operations, especially in fields such as automotive electronics, 5G communication, and the Internet of Things (IoT). While our primary responsibility is as a distributor of electronic components, we are also striving to help customers alleviate this issue through a series of measures.
Firstly, we assist customers in overcoming challenges arising from skills shortages by providing technical support and services. Our engineering laboratory department and field application engineer team are equipped with advanced testing and diagnostic equipment, enabling us to offer services ranging from simple component testing to complex system-level problem-solving solutions. This technical support can provide customers with the necessary assistance when they lack specific skill resources.
Secondly, we enhance customers’ technical knowledge and operational skills through training sessions and seminars. These activities typically focus on the latest electronic component technologies, market trends, and supply chain management practices, helping to update knowledge and enhance skills within customers’ teams. Our business modules also encompass the latest industry news and resource sharing, which we provide through our website, seminars, and customer services.
Furthermore, as active participants in the electronic distribution field, WIN SOURCE is committed to maintaining close connections with industry experts throughout the supply chain. We are not only members of industry associations such as the Electronic Reuse Industry Association (ERAI), the National Manufacturing Institute (NMI), and the International Printed Circuit Association (IPC), but we also closely monitor international developments and industry standard changes through these platforms. This deep industry engagement enables us to stay abreast of industry trends and technological advancements, thereby helping our customers better address challenges such as skills shortages and ensuring they remain competitive in the fiercely competitive market.
While directly addressing skills shortages may fall beyond our core responsibilities, at WIN SOURCE, we are dedicated to providing support to our customers through various means. We firmly believe that by offering advanced technical support, resource sharing, and industry engagement, we can effectively support our customers and ensure their competitiveness in the ever-changing market.
PEW: Sustainability, CSR and ESG – big topics right now. What do you do as an organisation both internally to address these issues, but also to help customers with their own policies in these areas?
WS: At WIN SOURCE, we deeply understand the importance of sustainable development, corporate social responsibility, and Environmental, Social, and Governance (ESG) principles, and we actively implement policies and measures in these areas. Through these efforts, we not only improve the environmental performance of our company but also optimize social and economic performance, ensuring that our business activities promote social welfare while also protecting the natural environment and achieving long-term sustainable development goals. Additionally, we are committed to helping customers develop and implement strategies in these areas.
Internally, we have obtained environmental certifications such as ISO 14001 and ISO 9001:2015, demonstrating our commitment to sustainable development by reducing the environmental impact of our supply chain activities. Furthermore, we adhere to a people-oriented philosophy, providing employees with a fair and inclusive work environment, competitive salaries, and various outstanding welfare programs. We also conduct monthly training to enhance employees’ professional skills and knowledge, demonstrating our commitment to talent cultivation and development.
Most importantly, customers can submit their inventory lists or stock through our website’s online shopping platform, and our experts will evaluate the value and condition of their inventory within 24 hours and provide the most favorable quotation. Customers can then choose from a combination of three options: “bulk purchase,” “off-site consignment,” or “on-site consignment” to effectively clear excess inventory. This measure not only helps customers manage inventory but also significantly reduces electronic waste, contributing to environmental protection.
Moreover, we take a customer-centric approach and work closely with customers to help them develop or strengthen policies in these critical areas. Firstly, we share our best practices and experiences to help customers understand the importance of sustainable development and social responsibility. This includes providing specific advice on how to effectively implement environmental protection measures, improve energy efficiency, and optimize resource utilization in business operations.
Secondly, we provide customized solutions to support customers’ specific needs, which may include helping them obtain relevant environmental management system certifications such as ISO 14001 or supporting them in implementing ESG principles in product design and supply chain management. Additionally, we enhance customers’ teams’ understanding of and response strategies to ESG trends through seminars and training sessions, which typically focus on industry regulations, market trends, and technological innovations.
PEW: Before we finish, it would be great if you can share any insights you might have in terms of the power electronics market – whether that’s the technologies and products being used, vertical market opportunities, expanding application areas, and the overall direction of travel?
WS: The power electronics market is currently experiencing a period of dynamic change and technological innovation, and WIN SOURCE, as an influential distributor of electronic components in this field, is fortunate to witness and participate in these transformations.
Currently, the primary technological advancements in the power electronics market focus on improving efficiency and reducing equipment size. Particularly, wide-bandgap semiconductor materials such as silicon carbide (SiC) and gallium nitride (GaN), known for their excellent thermal performance and high efficiency, are gradually replacing traditional silicon materials. These materials enable devices to operate at higher temperatures and voltages, significantly enhancing power conversion efficiency. As a distributor of electronic components, WIN SOURCE not only possess obsolete & EOL, common-used, and shortage components, but also continuously introduces such semiconductor products to meet the demands of new markets such as 5G and electric vehicles.
As these technologies mature and their application areas expand, we are actively exploring emerging markets such as smart homes and the Internet of Things (IoT). These areas require high-performance electronic components to support technological advancements and industry development, and WIN SOURCE is helping customers seize these opportunities by providing efficient solutions and high-quality components.
Overall, power electronics technology is rapidly advancing towards higher efficiency, environmental friendliness, and intelligence. With the increasing demand for environmental protection and energy conservation in the market, power electronics products are gradually adopting more sustainable materials and technologies.
WIN SOURCE is committed to leveraging our deep industry knowledge, extensive product portfolio, and rapid adaptation to new technologies to meet these challenges and opportunities, thereby driving the development of the entire industry. We look forward to exploring more opportunities with global customers and partners and jointly promoting the advancement of power electronics technology.
PEW: Any final thoughts as to the major challenges and opportunities facing both the power electronics sector as a whole and WIN SOURCE Electronics in particular?
In the field of power electronics, WIN SOURCE is facing a series of challenges and opportunities. Through continuous innovation and optimization strategies, we actively respond to the rapid changes in the market and development needs.
We are well aware that the rapid development of the power electronics industry presents both significant challenges and enormous opportunities for our business. Especially with the rapid expansion of applications in consumer electronics, medical electronics, electric vehicles, robotics, and the continuous emergence of new technologies and products, the market’s demand for more efficient and smaller electronic components continues to grow.
This drives us to continuously update and expand our product lines to adapt to these technological advancements. In this way, WIN SOURCE can effectively meet the growing market demand and actively explore larger market spaces, maintaining a leading position in the market with our extensive product supply and robust supply chain network.
However, global trade policies and geopolitical turmoil also bring considerable challenges, particularly in supply chain management uncertainty. We recognize that enhancing the stability and efficiency of the supply chain is crucial. We have taken multiple measures to manage this uncertainty, including establishing closer partnerships with global suppliers, expanding global sourcing channels, enhancing supply chain transparency, and utilizing advanced logistics and inventory management technologies to optimize the supply chain’s responsiveness and flexibility.
Additionally, we are striving to expand and strengthen our international business and global supply chain capabilities, especially in the power electronics markets of the Asia-Pacific, Europe, and North America. By leveraging local resources and market knowledge, we plan to provide more customized solutions for customers to enhance our existing market service capabilities and better meet customer needs and expectations.
In conclusion, despite the ongoing challenges, with our global supply chain management capabilities and profound understanding of market demand, WIN SOURCE is ready to seize the opportunities brought by these challenges, drive the development of the power electronics industry, and help our customers succeed in this ever-changing technological field.
