Electrical Factor Distributors Will need to Add more Valuation to ensure

Electronic technologies constantly change the global economy and at the core of this transformation is the electronic component industry. This evolution is forcing a paradigm shift in the way electronic component distributors must conduct business, now and in the years to come, if they would like to succeed.

Some, but not absolutely all, distributors have already adapted to this change by providing more than just a product. They have shifted from strictly distribution of components and connectors to add value-added services, such as for example just-in-time (JIT), custom design capabilities, assembly and kitting, in addition to engineering services.

Benefits for OEMs

Offering value-added services provides several benefits to original equipment manufacturers (OEMs) and their designers/engineers. OEMs aren’t always experienced in the products available to them or alert to the newest component technology. 총판커뮤니티 There is a time when manufacturer’s representatives were the conduit by which customers were educated on the manufacturers’ product offerings. Today, manufacturers are dramatically reducing their outside sales forces, and so the job of educating the OEM has become the responsibility of the distributor. This places the onus entirely on the distributor to be a specialist in what they sell or face the effects of lost opportunities.

This shift benefits the OEM because a producer does not look beyond its own product line when assisting the designer/engineer with part design. A vendor with a wide variety of products and product knowledge is able to provide OEM viable alternatives they could not have known existed.

When designing a complete system, the designer/engineer is confronted with several challenges through the entire development of the project and may overlook problems that are vital to the success of the design. Since the distributor services a variety of customers from various industries, it is subjected to diverse applications utilizing a variety of design concepts. The distributor is able to use this expertise to offer suggestions and alternative solutions to the OEM, possibly avoiding costly design mistakes.

Consultative Selling

Today’s distributor needs to utilize consultative selling. It needs to have the data to assist the designer/engineer when troubleshooting problems such as for example inter-connectivity issues or environmental concerns. Will it be exposed to gases, liquids, pressure or even salt spray? Think about the size, shape and configuration of the machine? Design panels do not at all times permit adequate space or unusual locations. Think about mating? The distributor will offer alternative mating solutions therefore the OEM is not forced to rely on one manufacturer. The distributor must be knowledgeable enough to gauge the environment, size restrictions or obsolescence of the components being designed in, and then inform the designer/engineer of any possible issues while offering viable solutions.

Another change happening at the distributor level is product customizations. For applications where standard products or solutions aren’t always available or a producer is not willing to work with the OEM on a fresh design, today’s value-added distributor is able to offer customization services such as for example plating, custom cable assemblies and custom pin configurations. Not totally all distributors have this capability, but the ones that do add significant value with their relationships using their customers. In exchange, this creates loyalty, and it is loyalty that keeps the consumer coming back.

The New Distributor

Today’s successful distributor must stock a wide selection of inventory to have a differential advantage in the marketplace. They are able to typically reduce manufacturers’ lead times from weeks to days. For example, BTC Electronic Components (BTC) – a value-added interconnect supplier – is able to offer 24 to 72 hour delivery on back panels and custom connectors to the aerospace and military markets that traditionally have experienced lead times of up to 12 weeks.

Sales through distribution will continue to boost over another few years. A sizable section of this is because OEM’s have began to depend on theirs relationships with distributors much more so than its relationship with the component manufacturer. OEM’s depend on the distributor for their product expertise, in addition to, design because redesign today simply costs a lot of time and money. A correct solution must be found quickly and on the initial go-round.

The electronics industry is continually evolving, and value-added distributors have their fingers on the pulse of new trends and technologies. They are in tune to these changing trends and will often have the resources to implement, and at times, perfect the idea. You will find notable examples whenever a distributor has been in charge of an industry design that is now commonplace.


Component distributors cannot often be everything to everybody. What they are able to do is find their niche(s) and service their customers well. It’s very important to distributors to provide continuing education programs with their organizations, and keep current on emerging technologies and markets, in addition to constantly changing old markets. Whether large, small or mid-sized, a distributor must offer quality products and on-time delivery. But most importantly, it must add value to the OEM and its engineers/designers.

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