Distribution
The debate amongmany in the channel centers around the need
to provide amobile app that is created for a specific device and operating systemsuch as the Apple iOS for iPhones or iPads and Android smart phones and tablets, andmobile-optimizedwebsites that are user friendly for tablet and smart phone users.
Today, only a handful of the largest distributors offermobile
applications that allowbuyers to access supply chain tools andmake purchases on-the-fly. But not allmobile apps are equal. Some apps allowbuyers to search and buy parts aswell as check inventory and lead times,while others enable users to access customer-specific supply chain data and performday-to-day procurement tasks such as checking order status and tracking shipments. The latter is typically tied to a distributor's supply-chain programand requires customer registration.
In some cases, themobile app directs buyers to the
distributor'smobile-optimized site to complete the transaction or task.
We surveyed 25 of the topNorth American electronics
distributors to find out howimportant it is to provide their customerswithmobile apps that allowthemtomake purchases fromtheirmobile devices. Interestingly, of the 16 respondents, only five offermobile apps formaking purchases or checking supply chain activities via tablets and/or smart phones. These include Avnet, Digi-Key, Heilind (part of DAC),Mouser and TTI.
Of the 11 distributors that said they do not offer a
mobile app for procurement only two (Electro Enterprises andGenieGroup) said they have plans to offer an app and one is in process. Electro Sonic expects to offer Android and iOS apps in the second quarter of 2013. The distributor may developWindows 8 and Blackberry apps later in the year.
Distributors that said they don't offer apps include Allied
Electronics, Century Fasteners, Future Electronics, Hughes-Peters, Newark element14, PEI-Genesis, Sager Electronics, and USI. Arrow Electronics did not respond to the survey.
"There are a lot ofmobile-optimizedwebsites and functionality, but there aren't a lot of truemobile iOS and Android apps, althoughwe do see that expanding aswemove forward," said Kevin Schubert, TTI's vice president of global Internet business.
Two of the key drivers behind the decision to develop amobile app
include howcustomers are accessing a distributor'swebsite, and howmany customers use thewebsite for transactions. For example, itmakes sense for TTI to invest inmobile apps due to the number of customer engagements on theweb.Of the 50 percent of TTI's North American customerswho engagewith the distributor on theweb, 10 percent of buyers use themobile apps compared to a little less than 20 percent of designers.
In comparison, PEI-Genesis, as an example, has a good reason to
take await-and-see approach. Based on the company'sweb analytics, less than one percent of all of itsweb traffic comes fromcustomers usingmobile devices.
However, PEI-Genesis has
seen a 20 percent growth in unique visitors to itswebsite, whichmeans the distributor "will continue to look atways to better satisfy those customers," said Colleen Ciak, director ofmarketing, PEI- Genesis, Philadelphia, Pa.
Some of those tools include
a parametric search, the addition of different languages, and a redesigned shopping cart. As a result, Ciak said the company sawa 60 percent increase in e-commerce sales in 2012.
Limitedmobile apps
The availability and use ofmobile apps in the distribution channel is in its infancy. But there are signs that buyerswillmakemore use of them as they become available and offer higher functionality,which includes access to purchasing history and other supply chain data.
January/February 2013 | 25
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