As manufacturers and their supply chain partners move inventory management to the front burner, programmable oscillators-while still niche products-are finding more slots in high-volume production programs. The key reason is fast order turnaround, which reduces inventory liabilities. In recent months, buyers have been placing orders with shorter lead times because OEMs are loath to keep inventory in the pipeline. With programmable devices, OEM customers no longer have to wait 18 weeks for a fixed-frequency oscillator to be built: They can have volume production in a matter of days.
When programmable oscillators first hit the market several years ago, the strategy of many oscillator manufacturers was to secure design wins by promising quick turnaround on samples and prototypes via programmable products. But fixed-frequency parts generally took over when projects moved to production. That has changed over the past year as more customers have turned to programmable devices for production manufacturing.
One company taking advantage of the trend is midsize distribution house Jaco Electronics Inc., which started a programmable-oscillator program about two years ago. Ben Schwartz, vice president of strategic marketing, told me Jaco has started to reap the benefits of its investment in a high-speed programmer that lets the company program, mark and move programmable oscillators to tape and reel in 24 to 72 hours, depending on the order quantity. Jaco offers programmable oscillators from Cardinal Components, ECS, Epson America, Fox Electronics and SaRonix Components. (Fox, however, doesn't let distributors do the programming.)
"We are seeing a broadening of the customer base [for programmable oscillators] and more acceptability from larger companies that have always looked [instead] at fixed frequency," Schwartz said. "Customers don't have to wait 18 weeks for a part to be built at the factory, and they don't have to stock any inventory. We stock it for them and deliver product in a couple of days." Schwartz claimed the program has rejuvenated the oscillator business in distribution. Many distributors were reluctant to participate in the market for fixed-frequency devices, he said, because of liabilities associated with stocking such parts in high volumes.
Now, contract manufacturers are influencing their customers to accept programmable products-so much so that Schwartz believes many major communications customers will switch to programmable oscillators once the comms market recovers.