Terminology

Terminology

Definitions to terminology relating to our products and the industry.

24  articles in this collection
Written by Shawn Bradley 

Approved Vendor List (AVL)

Approved Vendor List – Parts list specifying approved manufacturer and part number with a brief description.

Written by Shawn Bradley
10 February 2022

Bill of Materials (BoM)

Bill of Materials – A comprehensive listing of all subassemblies, components, and raw materials that go into a parent assembly, […]

Written by Shawn Bradley
10 February 2022

Bradley’s Law

“A company should expect to pay for a specific electronic device a price commensurate with their Competitiveness within that particular commodity. […]

Written by Shawn Bradley
10 February 2022

Client Part Number (CPN)

The unique identifier that each company assigns to an individual part or MPN. Each company will reference an MPN with […]

Written by Shawn Bradley
10 February 2022

Competitiveness

The term competitiveness (price competitiveness) or LCI (Lytica Competitiveness Index) is used to define a quantitative parameter that is calculated based on a company’s spending. Price […]

Written by Shawn Bradley
10 February 2022

Contract Manufacturer (CM)

 A contract manufacturer is a manufacturer that contracts with a firm for components or products. It is a form of […]

Written by Shawn Bradley
10 February 2022

Distributor

Electronic component distributors form a key part of the supply chain for providing electronic equipment manufacturers with the components they require.

Written by Shawn Bradley
10 February 2022

Electronic Manufacturing Services (EMS)

Electronic Manufacturing Services is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic […]

Written by Shawn Bradley
10 February 2022

End of Life (EOL)

End-of-life is a term used to indicate that a product has reached the end of its useful life from the […]

Written by Shawn Bradley
10 February 2022

Estimated Annual Usage (EAU)

An estimation of the annual quantity purchased of a particular part (electronic component).

Written by Shawn Bradley
10 February 2022

Lytica Commodities

Lytica has assigned part type names to groups of similar components. These are referred to as Lytica commodities and are classified the at the super, […]

Written by Shawn Bradley
10 February 2022

Manufactuer Part Number (MPN)

A unique number that is issued by manufacturers to identify individual products. Normally, the MPN of a product is a […]

Written by Shawn Bradley
10 February 2022

Manufacturer

A manufacturer is the company that owns the product brand, maintains control over its design and manufactures the component or […]

Written by Shawn Bradley
10 February 2022

Original Design Manufacturer (ODM)

An original design manufacturer is a company that designs and manufactures a product, as specified, that is eventually rebranded by another firm […]

Written by Shawn Bradley
10 February 2022

Original Equipment Manufacturer (OEM)

The company behind the “brand name” of a product that traditionally designed, manufactured, marketed, and provided customer support for their […]

Written by Shawn Bradley
10 February 2022

Potential Spend

Potential Spend is the amount of money that would be spent purchasing a component or group of components if 100% was purchases from the […]

Written by Shawn Bradley
10 February 2022

Price Competitiveness

A statistically derived ranking expressed as a percentile where 100% represents best in class spending performance. A 50th percentile company […]

Written by Shawn Bradley
10 February 2022

Price Movement %

Price Reduction % and Price Movement % have the same meaning although price reduction usually is associated with a lowering of a price. Price movement could go in […]

Written by Shawn Bradley
10 February 2022

Price Reduction %

Price reduction % usually is associated with a lowering of a price.

Written by Shawn Bradley
10 February 2022

Single Source

A single source procurement is defined as one in which two or more vendors or distributors can supply the product (MPN) […]

Written by Shawn Bradley
10 February 2022

Sole Source

Sole source refers to when only one supplier for the required item is available.

Written by Shawn Bradley
10 February 2022

Spend

Spend is the amount of money spent purchasing a component or group of components. When a customer buys products they have choices […]

Written by Shawn Bradley
10 February 2022

Spend Competitiveness

Spend competitiveness by commodity examines the variation in component prices to “Best in Class” values. In these calculations, individual prices […]

Written by Shawn Bradley
10 February 2022

Supplier

A supplier or vendor is the company that sells a component to a buyer. Suppliers could also be manufacturers if the sell […]

Written by Shawn Bradley
10 February 2022