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Blended distribution leads the way


America II’s marketing director, Anton Wurr, shares his outlook on the face of good distribution in 2013


Most distributors would agree that 2012 was a tough year, both for them and their customers, with quite a few fluctuations in everybody’s inventories and order sheets. Thankfully, by-and-large, 2012 was a year the industry weathered with a bit of extra work. But there can be no doubt that belts tightened a bit, budgets were evaluated carefully, and ‘efficiency’ and ‘value’ became the bywords of expenditure.


Of course, such an environment presented opportunity for companies that can buy-in components at


incorporating an increasing number of direct relationships with manufacturers. We currently have over 400 such relationships, a number of authorised lines, and have plans to expand these numbers still further. However this does not mean the company has gotten away from its core strength, sourcing components from an approved list of more than 4,000 suppliers.


In the current economic


environment, such a hybrid model offers customers the best of both worlds; the total predictability of direct


While some distributors have their own significant test facilities, these do not usually incorporate externally- validated standards, process and outcomes. Across 2013 America II, however, is continuing to develop its long-standing relationship with its third-party testing partners, offering customers peace of mind, and leveraging an industry-leading 10-year guarantee on all parts. In addition, America II employs 59 IDEA ICE-3000 certified quality control inspectors. That’s one of the largest teams of in- house quality inspectors in independent distribution.


In an environment where margins are tight, companies cannot afford to let counterfeit


components into the supply chain, and such attentive and reliable testing should no longer be considered optional.


with erraticism in supply is crucial for businesses in 2013.


As the economy moves up and down, manufacturers sometimes find themselves with orders cancelled at short notice and large amounts of stock on their hands.


Rather than write this stock off, manufacturers should cast around for an experienced partner with whom to embark on an inventory solutions programme; someone who can hold on to this stock and attempt to sell it, recovering maximum value. Manufacturers should look for total transparency, with up-front estimated valuations, and the ability to look into sales figures and forecasts in real- time. In this way manufacturers can respond nimbly to fluctuating market conditions with minimal risk.


Looking to the future At the end of the day a leading distribution partner will deal with supply and inventory needs while providing a flexible, easy-to-deal with, transparent service, minimising risk as


competitive rates and safeguard themselves against risk. Such an economic climate particularly reward distributors that can offer these services effectively.


The benefits of blended distribution


In 2012, blended distribution was one of the best ways the channel could react to the market.


As part of its effort to deliver better value and flexibility to its customers, over the last couple of years, while protecting the solidity of its core operation, America II has been


14 March 2013


relationships with independents’ flexibility, cost-savings and ability to find hard-to-source components (or components that are no longer produced).


Tough on counterfeiting Although counterfeit electronics represent a minute proportion of the trade in electronics within the UK, this market is still estimated to be worth something around $30 billion annually. Comprehensive counterfeit testing therefore continues to be an area where distributors can stand out from the crowd.


Components in Electronics


Inventory solutions 2012, at times, saw significant overstocking and inventory levels. While some ‘wobble’ in the industry is natural, the ability to deal intelligently


much as possible and providing market-leading expertise to its customers. We’re pretty sure customers will recognise this kind of high-quality service when they see it.


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