Top Independent Distributors 5. ClassiC ComponEnts
Classic Components Corp. is undergoing a major evolution from a shortage-centered organization to one that offers different approaches and strategies to meet customer needs for inventory management, consignment and materials cost reduction. This year, the company plans to implement a reverse logistics offering. "We are crisis managers but with that model you don't exist in
the supply chain. You are more of a tool around the supply chain to help manage a materials crisis," said Ray Liston, vice president, global business development, Classic Components Corp. "The fact is that we do help them manage crisis and help keep their lines running, and there is a value in that," said Liston.
"If you look at how we have evolved in inventory management,
excess management strategies, consignment agreements, those are getting big and more and more companies are looking at outsourcing some of those activities that aren't their core competencies," said Liston.
In addition, customers are looking to take advantage of
opportunities to reduce their overall spend by allocating a small percentage of their spend to the open market to get pricing below what they're paying as a standard price, added Liston.
The distributor created a materials cost reduction hub, an
exclusive OEM/EMS centered community for trade. "That was mainly to mitigate all the quality issues that were starting to surface in our industry in order to find good, reliable and trusted product," said Liston.
"Sourcing through a reliable, quality-driven supply chain is, and
probably always will be our biggest challenge," said Liston. Liston says Classic has experienced a measurable shift in strategy relative to managing excess inventory. He says customers can
Classic Components at a glance Headquarters:
2010 revenues: # of employees:
Torrance, Calif. $205.0 million 265
% of value-added sales: 4% Key expansions in 2010: Expanded in India and Asia Key challenges in 2011: Creating and implementing new supply-chain optimization programs and services, and continuing coordinated and sophisticated component counterfeiting fromAsia
leverage its global operations and footprint to warehouse inventory regionally in an effort to reduce both logistics and carrying costs, while optimizing recovery rates through more qualified component level data.
The rising concerns over counterfeiting also prompted Classic
to re-evaluate its global sourcing policies and shift more towards an OEM/EMS and qualified distributor sourcing strategy; relying less on open market sources, said Liston.
Classic also made sizeable investments in new inspection
capabilities that included purchases for in-house X-ray capabilities, and plans to hire two SQEs this year.
Over the past few years, Classic has implemented significant
changes to the organization in terms of management,MIS capabilities, IT infrastructure, quality management and corporate branding. The company also recently hired two new regional managers in its Singapore and Shenzhen offices.
Classic Components also recently launched its new website
and corporate brand that reflect the changes to the company's revised business model. It's also looking into some new inventory financing programs through Classic Capital Corporation to provide additional avenues for its customers to reduce inventory carrying costs.
top rankEd indEpEndEnt distributors: 6 to 10 6. Rand Technology at a glance
Headquarters: 2010 revenues: # of employees:
Irvine, Calif.
$100.0 million 70
% of value-added sales: 10% Key expansions in 2010: Expanded in Europe, Asia, North & South America Key challenges in 2011: Quality, supply assurance
7. Horizon Technology at a glance Headquarters:
2010 revenues: # of employees:
Lake Forest, Calif. $60.0 million 100
% of value-added sales: 50% Key expansions in 2010: N/A Key challenges in 2011: Credibility concerns regarding quality of open market products, supply-chain software that streamlines supply-chain management, authorized distributor acquisitions
8.World Micro Components at a glance Headquarters:
2010 revenues: # of employees:
Roswell, Ga. $30.0 million 66
% of value-added sales: 5% Key expansions in 2010: N/A Key challenges in 2011: N/A
30 | June 2011
9. Stealth Components at a glance Headquarters:
2010 revenues: # of employees:
Charlotte, N.C. $23.0 million 63
% of value-added sales: 0% Key expansions in 2010: Deployment of an enterprise database system, and launched its new brand and company website
Key challenges in 2011: Continuing the expansion of its supplier base with suppliers that meet its approval criteria to ensure counterfeit parts are kept out of its supply chain
10. 4 Star Electronics at a glance Headquarters:
2010 revenues: # of employees:
San Clemente, Calif. $18.0 million 43
% of value-added sales: 5% Key expansions in 2010:
Invested $200,000 in quality-related equipment Key challenges in 2011: Procurement, counterfeit parts and validation
Editor's note: ESNA understands that there are a host of independent distributors with revenues of less than $100million that likely would havemade the top 10 ranking in 2010. Independent distributorsmust complete a three-page survey in order to be considered for the ranking.
www.electronics-sourcing.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52