Connectors
PEI gives customers precisely what they need, not simply what's in stock
HowImPorTAnT Is IT To TrusT Your DIsTrIbuTor PArTner?
A good distributor will try tominimise risk andmaximise supply chain solutions for its customers, but how do you know who to trust?
Choosing a distributor partner to hold inventory for you requires a great deal of trust. Youmust have confidence that your distributor will deliver high-quality products in the timeframe promised, will be responsive to your needs, and will provide solid support. So how do you know who you can count on?
A good distributor will try tominimise risk andmaximise supply
chain solutions for its customers. The twomost commonmethods are in-plant stores of finished goods or bonding finished goods. Long lead-time items, however, like connectors and power supplies require long inventory pipelines and large buffers built into the supply chain. An engineering change notice (ECN) can instantly turn an in-plant store or supply chain solution into amajor liability.
Distributors also have different levels of tolerance for holding
inventory to support supply chains. Holding large inventories of dedicated finished goods to cushion lead time can be risky. Some distributors approach this problemby reserving shared pools of inventory for customers who use the same parts. Unfortunately, thismeans that not all of the customers will actually have their needs covered by the
bond.Most inventory solutions will not buffer total lead time or the total quantity necessary to truly protect supply chains frominventory risk.
An Alternate Approach
As an assembler of connectors and power supplies, PEI-Genesis, has chosen an alternate approach. It builds virtually all of its products to order fromcomponent parts, giving customers precisely what they need, not simply what is in stock.
The company is able to assemble tailored connectors in 48 hours 12 |March/April 2012
andmodified standard power supplies in five days, regardless of order quantity. Buyers get the full flexibility of choice with a low risk of obsolescence.With a build-to-ordermodel, it is logical for PEI tomake large inventory investments that truly protect the supply chain. During the recent recession, this approach allowed PEI to actually increase its component inventory, putting it in a strong position to support customers as the economy recovered.
Choose a Partner You Can Trust
Trust is amajor plus point for customers using the company. In a third-party customer survey completed in December 2011, almost 700 respondents were asked: what do you findmost valuable about PEI-Genesis? Themost common answer by far, confidence in their customer service. One person replied: “PEI offers better customer service and solutions than any other company I've used. I can always count on its help and availability to solvemy crunch schedule
needs.My rep is the best. PEI ismy go-to connector house and has been for a long time.”
Today,manymanufacturers and distributors are cutting
inventories and raisingminimumorder quantities (MOQs). They have fewer customer-facing employees, less engineering support and longer andmore complex supply chains. A skillful distributor can bridge this gap by providing excellent service, engineering support and a nimble response to supply chain changes. The world is evidently changing, so it's important tomake sure you pick your partner accordingly.
www.peigenesis.com www.electronics-sourcing.com
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