Electronic technologies are constantly altering the world economy and at the heart of this change is the industry of electronic components. This is causing an overhaul of the way that electronic component distributors conduct business both now and in the future should they wish to achieve success.
Certain of the distributors have already responded to this shift by offering more than simply an item. They’ve moved away from the rigid distribution of connectors and electronic components list to include added-value services like just-in-time (JIT) as well as custom design capabilities as well as kitting and assembly and engineering services.
Benefits for OEMs
Value-added services can bring many advantages to OEMs (OEMs) as well as their engineers/designers. OEMs aren’t always well-informed about the available products to them, or are aware of the most recent technology in components. In the past, manufacturers’ representatives were the primary channel that informed customers about the products. Nowadays, manufacturers are drastically cutting their sales force outside and the responsibility of instructing customers about the OEM is now in the hands to the distribution company. This puts the burden directly on the distributors to be knowledgeable about what they offer or suffer the consequences of losing opportunities. Get more info about Electronic components procurement platform.
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 selection of products and experience can provide the OEM with feasible alternatives that they might not have thought of.
When creating a complete system the engineer or designer is faced with a variety of challenges during the process of developing the project and can overlook the issues that are vital to the overall success of the design. Since the distributor provides services to many customers in diverse industries, it is subject to various applications using various design ideas. The distributor is able to make use of this knowledge to provide ideas and solutions for the OEM and possibly avoid costly design errors.
Today’s distributors must employ consultative selling. It must have the expertise to aid the engineer or designer in resolving issues like inter-connectivity issues, or environmental issues. Are they subject to liquids, gases pressure, or salt spray? What is the dimension or shape of this unit? Design panels may not offer enough space or for unusual positions. What is the mating process? The distributor is able to offer different mating options so that the OEM doesn’t have to depend on one supplier. The distributor must be experienced enough to assess the conditions sizes, restrictions on size, or obsoleteness of the parts that are being developed and inform the designer or engineer of any possible problems while providing viable solutions.
Another major change happening at the level of distributors is the possibility of product customizations. For situations in which standard solutions aren’t always available or the manufacturer is unwilling to collaborate with an OEM to develop a new concept, today’s value-added distributors are capable of offering customized services like plating and custom cable assemblies and customized pin configurations. Some distributors do not have the ability to offer this service, however, they can add benefits to the relationships they have with customers. This in turn creates loyalty. It is this loyalty that keeps customers returning.
The New Distributor
The most successful distributors today must have various inventory to gain an edge in the market. They typically cut down manufacturing lead times from weeks to just a few days. For instance, BTC Electronic Components (BTC) is a value-added interconnect supplier – that can offer 24-72 hour delivery of back panels as well as custom connectors for the aerospace and military market which typically have lead times that range from 12 weeks.
Distribution sales will continue to grow over the next couple of years. The reason for this is due to OEMs are now relying upon their connections with distributors more than they do with the manufacturer of the component. OEMs rely on distributors for their knowledge of their products and the design since a redesign today takes too long and cost. The best solution needs to be identified quickly and within the first try.
It is a fact that the electronics market continuously changing and value-added distributors keep their fingers at the forefront of the latest trends and developments. They are aware of the changing trends and have the ability to implement and sometimes, even make the ideas more effective. There are numerous instances where distributors have been the ones the person responsible for a design that is now standard. For more info about Excess Electronic Components inventory, Visit here: www.oemstron.com
Distributors of components can’t be all things to all. They can identify the right niche(s) and provide their customers effectively. Distributors need to provide ongoing education for their companies and remain current with new technologies and markets as well as the constantly changing markets that have been around for a long time. Small, large, or mid-sized, distributors must provide high-quality products and timely delivery. Most important, it should add worth to OEM and its designers/engineers.