Feature Distribution
From Prototype to production
Mark Larson, at Digi-Key, describes how today’s global market needs are redefining how electronic components are being distributed
A
new kind of ‘hybrid’ global dis- tribution model for electronic component delivery has emerged. Shaped largely by global business dynamics and online consumer behaviour, this latest model promises the engineer a new level of efficiency and economy of scale. This is due, in part, to a ‘customer-ised’ enterprise, which comes with an expectation of self-service, high-quality information access and speed. Especially with the rapid adoption of mobile devices and cloud computing, buyers expect easy online access - any- where, anytime. For businesses, the possibilities are limitless and, at the same time, the customers’ expecta- tions are at an all-time high. They demand options, speed and knowledge at their fingertips.
The combination of technology advancements, customer behavior and global business has created both opportunities and challenges in the electronic component distribution business. As a result, a next generation electronic component distribution model has emerged, which can support and sustain the evolving needs of today’s engineer throughout the entire lifecycle of a product.
There are distributors out there who continually aim to master this approach, for example Digi-Key has developed a model that enables engineers to engage with a long-term prototype go-to partner. The distributor assists in building a relationship, which can carry through from the design to the production process, avoiding the complexities, inefficiencies and risk inherent in developing multiple relationships.
Over the past forty years, evolutions 10
in business has meant that Digi-Key has evolved its traditional ‘catalogue’ business model from servicing not just individual product design orders, but also focusing on servicing high-mix, low-volume production.
In an industry that culminates around a high-tech culture such as ours, company’s should embrace leading- edge methods of interfacing with and serving customers - 21st century processes and solutions that bring a degree of speed and efficiency to the design engineer.
Having a thorough understanding of the product design process is vital to understanding the needs of the engi- neer. The company understands the importance of giving the engineer easy access to two things – parts and infor- mation. With vast amounts of knowl- edge and hundreds of thousands of parts, the key is making it easy for the engineer to find useful content and the right part quickly. Today, engineers expect to have deep and broad technical information at their fingertips, 24/7. New ways of presenting information, including videos and Product Training Modules, can help compensate for a lack of expe- rience or specialised knowledge and accelerate the design phase process.
A service based culture Second is a commitment to never com- promise on service. Every single employee, regardless of department, needs to be 100-percent focused on the customer. Thorough training and a culture of caring about the needs of the customer must be pervasive through- out the organisation. This needs to be apparent not only in customer service, sales and other customer-facing
A good distribution model is key to delivery the highest level of customer service
departments, but company-wide. Third, an ultra-efficient distribution model is highly important. Digi-Key offers global shipping from a single location, promising delivery in as little as 48 hours. As opposed to more regional models, a centralised approach allows the company to aggregate inventory, offering a broader selection of products. As a result, logistics and service is seamless to all customers regardless of location. The benefit is a single interface into one organisation – from single prototype orders to mass production orders. With long-term partners, distributors can act as a pre-production resource. Customers moving through the design process always look for ways to improve manufacturability. Once a design is finalised, it becomes difficult to find cost-savings after the product goes into production. Disparities in the process lead to product launch delays, cost over- runs, and unnecessary risk. Engineers need a distribution partner who is reli- able and consistent with broad product availability, delivery and service. In summary, five characteristics distinguish the new ‘Prototype to Production’ model: Availability: Deep, broad product line, available for immediate delivery Content: Access to design-phase knowledge to support the process Scalability: Ability to ship high mix/ low-volume orders Speed: Able to ship parts for overnight delivery, anywhere in the world Service: First-rate sales and customer service professionals, trained to support all types of customers regardless of where they are located in the world, customers seek to accelerate cycle time, reduce costs, and bring products to market faster. Manufacturers facing increasing global business complexities and mounting pressures to accelerate their return on investment are seeking added value from their distribution partners. In return, distributors should focus on reducing the customer’s total cost of acquisition by serving as a ‘One-Stop’ for prototyping and design as well as new product introduction runs and low to medium volume/high mix production quantities.
Mark Larson is President of Digi- Key
Digi-Key
www.digikey.co.uk Enter 201
Distributors such as Digi-Key who favour ‘traditional qualities’, centre on delivering a wide product selection, stable pricing, fast delivery, etc. – translating into an effective volume production model. Amid the ever- changing market dynamics, organisa- tions that succeed in today’s global business environment are partnering with a distributor who can offer the next generation delivery model, supporting the entire process - from prototype to production.
SEPTEMBER 2013 Electronics
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