Gina Roos
Editor
gina.roos@
electronics-sourcing.com
Don't call independent distributors 'brokers'
Independent distributors don't want to be called brokers. That's because the term broker in the distribution channel often is associated with unscrupulous behavior, and lower levels of quality and service.
Many independent distributorswant to distance themselves frombrokers as they
continue to become a vital part of the supply chain, by implementing quality processes, instituting tough supplier certifications and building customer relationships.
Many of the big guys have already beenmaking significant investments in
counterfeit detection and testing labs tomitigate the counterfeit problem, distancing themselves frombrokers that just sell components. These distributors are asking OEMand EMS companies to visit their facilities to conduct site audits in order to alleviate any of their concerns they have buying froman independent distributor. In some instances, they have up to four or five companies conducting site audits every week.
In a recent interview with JimMagee, president of America II Electronics, for the
Top 10 Independent Report, he said there is a core group of companies that belong to the Independent Distributors of Electronics Association (IDEA) that "have the integrity of the supply chain at the heart of what they do. Our job is tomake sure that our large OEMand EMS customer base understands the value of the independent channel as a whole."
Still, independent distributors cite "credibility concerns regarding quality of open
market products" as a big issue for 2011. Read our report on the top 10 independent distributors to find out what they're doing to keep counterfeit components out of the supply chain.
If you have any comments, questions, or story ideas, please sendme an e-mail. I can also be reached at 207-989-2368.
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Sourcing ELECTRONICS PUBLISHING June 2011 | 3
Catalog Distributors Keeping the shelves stocked
44
What's New Capacitors for high-reliability applications
Configurable Enclosures Cuts development time, costs
40 36
Crystals & oscillators Stable lead times ahead
32
Top 10 Independent Distributors Report A quest for quality
Strategic Sourcing Collaboration is key at Silex
24 20 June 2011 Vol 2No.6 6
News DRAMpricing rises slightly
Contents
US LLP
Advanced MP Technology N.F. Smith & Associates, LP America II Electronics Inc. Fusion Trade Inc
Classic Components Corp. Rand Technology Horizon Technology
World Micro Components Inc. ts Inc
($millions) 382.0
Global Sales
2010
380.0 300.0 250.0 205.0 100.0 60.0 30.0 23.0
Percent change from
previous year
30%
-13% 26% 7% 4%
18% 15% 50%
207% %
employees Components Compo 50
# of
272 307 600 100 265 70
100 66 63 43
Active
75 75 48 68 80 10 25
N/A 30
2 2 2
Pass
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