Contents
Jon Barrett Managing Editor
Isolating distribution strengths
I’ve had the good fortune to speak to a variety of CEOs over past weeks, each responsible for spearheading electronics distribution businesses ranging from global catalogues to pan-European specialists and national broadline houses. These conversations provided an opportunity to explore recent trends, current market conditions and future plans. Froma buyer’s perspective some interesting themes are developing.
Look back over the past 18-months and plenty of revenue graphs were
heading skyward. There weremany reasons for this: restocking following the credit crunch; growth within cash rich developing countries; technology shifts; artificial growth via quantitative easing; and even war.
Move to today and those same revenue graphs are settling down as the
effects of such stimuli are wearing off. Growth remains but not at the same rate, which is fine.
My general feeling is thatmost players in the electronics supply chain have
used this period wisely, not for acquisitions or growth for growth’s sake, but to look inwards and invest in doingmore of what they do best. This has to be excellent news for the purchasing community.
Catalogue distributors aremaking it ever easier to buy an increasingly wider
range of parts; broadliners are ploughing cash into infrastructure and value added services; while specialists are holding the linecards tight and offering the highest levels of product lifecycle support.
The days of endless acquisition, diversification and blurred business
boundaries seems to be over. Distributors have worked hard over the past couple of years to isolate their strengths and focus on them.
As I see it, the result is a supply chain that is fit for purpose, where each
distributor can clearly present its unique selling points for the greater good of their customers. I say well done.
How to contact Electronics Sourcing Europe:
EDITORIAL Editor - Europe: Jon Barrett
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