Supplier Spotlight: Flip Electronics

Key Facts:

• Headquarters: Alpharetta, GA
• Facility size: 73,000 sq. ft
• Number of people: 85
• Revenue in 2023: $100m+
• Number of suppliers: 26

“Flip Electronics has emerged as one of the fastest-growing authorised distributors by effectively tackling the longstanding challenge of product obsolescence customers and suppliers face. The rapid pace of technological advancements often results in the abandonment of older components. However, product obsolescence poses a significant concern for sectors such as military, aerospace, and industrial, where product lifecycles frequently span 10 to 25 years. Flip Electronics has flipped the obsolescence model on its head, embodied by our motto, ‘Making Obsolescence Obsolete’.” - Jason Murphy, CEO & Founder, Flip Electronics

The mission:

“We like to say we're ‘Making Obsolescence Obsolete’. Of course, at some point, certain products reach the end of their life due to technological limitations, and it's no longer possible to manufacture them. However, we focus on two key strategies to address this. First, we ensure that we have remaining excess inventory available to customers. Second, through our acquisition of Resurgent Semiconductor, we can now license the manufacturing of mature legacy parts, allowing continued production as long as we can source essential components, such as headers, substrates, and wafers. Additionally, we have the capability to bank and store wafers, building them out over time as needed. This means not only do we have a robust distribution solution for stocking parts, but we also have the ability to manufacture some components indefinitely.”  

Flip Electronics was founded in 2015 by Jason Murphy. With a career largely spent in component distribution, Jason saw an underserved need in the market, specifically in dealing with obsolete semiconductor devices. When semiconductor parts reach the end of their lifecycle, it creates challenges for both suppliers and customers. Suppliers face difficulties in phasing out product lines gracefully, managing excess stock, and supporting customers looking for solutions. On the other side, customers often need to maintain products for several years beyond the lifecycle of the semiconductor devices, leaving them in a bind once the authorised supply runs out.

In many cases, the only option for customers is to turn to the grey market, which comes with risks of counterfeit devices or quality issues. Jason envisioned a distribution model that would work closely with suppliers to support post-end-of-life demand in an authorised, reliable way. This approach allows customers to avoid the risks associated with the grey market. Flip Electronics bridges the gap between suppliers and customers, making this challenging situation more manageable for everyone involved.

The distribution model

Flip Electronics operates with a substantial inventory model, especially when dealing with end-of-life products. Given the nature of these products, it invests heavily in maintaining stock. 

“Our facility in Alpharetta currently holds between half a billion and three-quarters of a billion parts, a significant inventory that allows us to fulfil orders globally. We can ship these parts anywhere in the world within a few days,” notes Bradford.

In addition to its main facility, the company also has resources in Asia, and its big focus in 2024 has been on expanding its footprint in Europe. 

“Europe currently accounts for about 20% of our sales, and while we already serve many customers in the region from a distance, we believe that by developing closer customer relationships, we can significantly grow our European revenue. We expect to achieve growth at roughly twice the rate of Flip’s overall growth, aiming for Europe to represent 30-35% of our revenue within the next three to five years.

“This gives us a truly global presence, enabling us to provide support and deliver products quickly,” said Bradford. 

More recently, the company launched its brand-new e-commerce website, making it easier than ever to source authorised hard-to-find components. Users can browse and shop 24/7, search by part number or brand, and request quotes instantly.

Flip Electronics conducts extensive data analytics on inventory trends and is in the early stages of incorporating AI into its operations. This includes using AI to evaluate inventory, assist with pricing strategies, and improve customer service. With the large volume of inquiries it receives, AI is helping the team respond to customers more quickly and efficiently.

Supporting sustainability 

Flip Electronics adheres to all industry standards, including RoHS, and maintains the necessary certifications to ensure quality in how it stores its products. 

In the semiconductor industry, being an authorised distributor is crucial due to the widespread issue of counterfeit products. The company’s certifications from the CISA ECIA? and its suppliers assure customers that the products they receive are genuine and reliable. Additionally, it works closely with top manufacturers, who drive the material content and have robust sustainability programmes in place, ensuring that its operations align with environmental standards.

A big fish in a big pond

The company surpassed $100 million in sales in 2023 and is fast approaching 100 employees. It has been recognised in Georgia's ‘Fast 40’, which honours the fastest-growing companies in the state. Additionally, it’s made the Inc. 5000 list for five consecutive years.

Another key achievement is the line card it has developed. “For a startup distributor that's less than 10 years old, we've secured partnerships with companies such as NXP, ON Semiconductor, Renesas, Infineon and Lattice. “We are solving problems for some of the largest semiconductor companies in the world,” said Bradford.

Bradford puts this success down to a highly motivated team that recognised an important gap in the market plus a very proactive go-to-market approach. Historically, suppliers would scrap a lot of their remaining end-of-life material after discontinuing a device, leaving customers to rely on the grey market. Flip Electronics has addressed this by creating a market that connects authorised supply with customer demand. 

“This solution benefits both sides, solving problems for suppliers and customers alike. By bringing them together, we’ve created a strong dual value proposition for our partners,” highlights Bradford.

In addition, the company is highly engaged in educating its customer base about the challenges of obsolescence. It does this through thought leadership pieces, participation in symposiums, and the publication of whitepapers and articles. Notably, Gary Becksedt, VP of Quality and Warehouse Operations at Flip, recently published an eBook, Counteracting Counterfeiting, which explains how counterfeiters use tools and technologies to produce fake components. The eBook covers the vulnerabilities of electronic components, real-life examples of the impact of counterfeiting, and just how extensive the problem has become. 

“This active involvement has established us as industry experts on obsolescence. We serve as consultants to both our customers and suppliers, helping them navigate the transition out of legacy products effectively,” notes Bradford.

A community at heart

At Flip Electronics, its culture is intentionally shaped by a set of guiding principles it calls ‘Flipisms’. These core values define how it operates daily and drives its success. ‘Flipisms’ include accountability, solution-focused thinking, passion, teamwork, follow-through, positivity, ownership, and collaboration. These principles give the company a competitive edge, helps it to attract top talent, and boosts productivity. 

It also uses ‘Flipisms’ to honour employees who consistently embody these values, recognising their contributions and reinforcing the behaviours that make it thrive. By embracing this culture, the company ensures that the team consistently meets customer needs, exceeds expectations, and fosters a robust and supportive environment that powers the company’s growth.

Flip Electronics also runs an employee-led outreach initiative. Launched in 2020, Give-A-Flip is designed to foster a positive influence in the local community and the broader Atlanta area. The company has partnered with organisations such as FurKids, Toys for Tots, Foster Care Support Foundation, Operation Gratitude, and the American Kidney Fund. In our most recent endeavor, Give-A-Flip reacted quickly to support Samaritan's Purse in aiding victims of Hurricane Helene across our headquarters state of Georgia.Empowering employees to make a difference is at the heart of this initiative. This empowerment creates a legacy of compassion and community support, inspiring and motivating the team to contribute to the greater good.

So, why buy from Flip?

“The main reason is to avoid the grey market and ensure you're getting authentic, high-quality parts. The only way to guarantee this is by purchasing from an authorised source. We've invested heavily in inventory, so if authorised stock is available, it's likely on our shelves, ready to support your needs.

“While we don't necessarily push customers towards the next generation of parts, we do offer a range of cross-referenced options with different speed grades. For customers in a difficult position, searching for obsolete parts, we may have similar parts from the same era that, though also obsolete, are still in stock and can meet their needs. 

“Ultimately, our ability to support lifecycle management for both customers and suppliers is a key value we provide,” summarises Bradford.

Visit Flip Electronics at electronica 2024 

Whilst at the show, Flip Electronics would like to invite you and your team to see if you have what it takes to outsmart counterfeiters and launch a rocket into space! Flip Electronics will unveil its brand-new interactive counterfeiting game to push your knowledge to its limits and prove your expertise in this high-stakes game of wits!

Visit Flip Electronics: Hall C3, Stand 351

Awards

Georgia Fast 40

• 2024 – No. 18 
• 2023 – No. 4 
• 2022 – No. 4 
• 2021 – No. 13 

Inc. 5000 America’s Fastest-Growing Private Companies 

• 2024 – No. 3,006
• 2023 – No. 842
• 2022 – No. 1,831
• 2021 – No. 1,024
• 2020 – No. 343

ESNA Top 50 Americas Distributors Report 

• 2023 – No. 33
• 2022 – No. 27
• 2021 – No. 35

Top Distributors Supply Chain Connect: Top 50 Global Electronics Distributors List 

• 2024 (Global) – No. 38 
• 2024 (Americas) – No. 26

To read the article on Procurement Pro, click here: https://magazines.electronicspecifier.com/view/654202030/16/