Electronic technologies are constantly altering the world economy, and at the center of this change is the industry of electronic components. This change is forcing to make fundamental changes in the way that electronic component distributors operate today and in the coming years in order to achieve success.
A few however, not all distributors have already made the necessary adjustments to the new requirements by offering more than simply an item. They’ve shifted away from the strict distribution of connectors and components to include value-added offerings, including just-in time (JIT) and custom design capabilities as well as kitting and assembly and engineering services.
Benefits of OEMs
Value-added services offer a variety of advantages to OEMs (OEMs) as well as their engineers/designers. OEMs may not be knowledgeable about the options available to them or knowledgeable about the most current technology for components. In the past, representative of the manufacturer was the channel that informed customers about the manufacturer’s products. Today, manufacturers are drastically decreasing their outside sales teams and the responsibility of informing on behalf of the OEM is now the sole responsibility to the distribution company. This puts the burden directly on the distributor to become knowledgeable about what they offer or suffer the consequences of losing opportunities. For more info about Crystals Components, Visit our website.
This change is beneficial to this shift for the OEM since a manufacturer will not consider alternatives to its own product range when helping the engineer/designer in designing parts. A distributor that has a broad variety of products and expertise can offer the OEM feasible alternatives that they may not have considered.
When creating a complete system the engineer/designer has to deal with a variety of challenges during the course of development and could overlook aspects that are vital to the development of the plan. Because the distributor provides services to many customers in diverse industries, it is subject to various applications using various design ideas. The distributor can make use of this knowledge to provide alternatives and suggestions to the OEM which could help avoid costly design errors.
The distributor of today must use consultative selling. It must be able to help the engineer or designer in resolving issues like inter-connectivity issues, or environmental issues. It will be subject to liquids, gases pressure, or even salt spray? What are the dimensions and shape that the device will be exposed to? Design panels may not offer enough space or in unusual places. What happens when mating is required? The distributor may offer other mating options to ensure that the OEM does not have to depend on one supplier. The distributor should be knowledgeable enough to analyze the surroundings and size limitations, or obsoleteness of the products being developed and inform the engineer or designer of any potential issues , while also offering solutions.
Another trend that is taking place at the level of distributors is the possibility of product customizations. In situations that require standard solutions or products are not always readily available, or a manufacturer isn’t willing to collaborate with the OEM to develop a new model the value-added distributor of today is equipped to provide customized options like plating or custom cable assemblies as well as customized pin configurations. Some distributors do not have this option but those who have it add significant benefits to the relationships they have with customers. This in turn creates loyalty. It is this loyalty that keeps customers returning.
The New Distributor
A successful distributor today has to stock various inventory to gain an edge in the market. They are able to reduce the lead time of manufacturers from weeks to just a few days. For instance, BTC Electronic Components (BTC) an interconnect with value added provider – can provide 24-hour to 72-hour delivery of back panels as well as custom connectors for the military and aerospace markets which typically have lead times as long as 12 weeks. More info: www.xinyun-ic.com
Distribution sales will continue to rise in the coming years. The reason for this is due to OEM’s who have been relying more on their relationships with distributors more than their relationship with the manufacturer of components. OEM’s rely on distributors for their knowledge of their products as well as design , as redesigning today requires a lot of time and cost. A solution that is right for the situation must be discovered quickly and on the first try.
Electronics industry always changing, and value-added distributors are able to keep their finger at the forefront of the latest developments and technology. They are aware of the changing trends and have the ability to implement and, at times, improve the concept. There are numerous instances where an agent has been the one in charge of a design for the industry that has become commonplace.
Distributors of component parts are not the perfect fit for everyone. They can discover the right niche(s) and serve their customers effectively. It is crucial for distributors to offer continuing education to their companies and remain current with market trends and technologies, and also constantly evolving old ones. No matter how big, small or mid-sized, distributors should provide quality products, and prompt delivery. Most important is that it adds added value for the OEM and its designers/engineers.