Feature Distribution
Must do better or risk falling behind in the game
Paul Bandy at Aerco discusses how distributors need to look for different ways to stay competitive or risk losing their edge
T
o service any industry success- fully a distributor must have a deep knowledge of that industry and know how it works and what is expected of both products and sup- pliers. Distributors must also look at ways to differentiate themselves from their competitors in order to maintain growth and profitability. Take for example a distributor such as
Aerco who has been in the industry since 1956 and has over the years built up a comprehensive product range to satisfy most requirements. This creates for an ideal partner for vendor reduction and product call off programmes as the com- pany is prepared to commit to these high levels of stock. But, in order to remain profitable and meet its growth plans, the distributor must continually seek ways in which it can improve performance and the level of service it provides.
The SC21 programme
One way the distributor has identified for improving its standards was to sign up to the ‘Twenty First Century Supply Chains’ or ‘SC21’ programme. Launched in 2006, SC21 is designed to improve the perform- ance of the UK aerospace and defence industry in an increasingly competitive world market and help suppliers to excel within the supply chain of this demand- ing industry.
The programme recognises the need for suppliers to be dynamic and flexible to keep pace with evolving business and customer needs and provides a framework for improving the effective- ness of the supply chain. Companies that sign up to the scheme commit to working together in three key areas: accreditation, development and improvement and relationships and are set a framework of standards and measurements to work towards gold silver and bronze standards. Aerco are convinced that signing up for this scheme and working towards gaining accreditation will help it put focus and discipline into its develop- ment programme.
One criterion by which distributors are judged is the level of support pro- vided to customers. However, it is not just the level of technical excellence
10
the military and aerospace arena over the years, more recently, it decided to look further afield to fulfil growth plans. What the company found was that markets such as the rail and trans- portation industry shared many of the products and services that had proven successful in military and aerospace. As a result the distributor has since
that matters but also the way that tech- nical information is disseminated to the customer base and how easy it is for a customer to gain access to the information.
A few years ago the company set up a platform called ‘Live Chat’ on the Aerco website that provides customers with immediate access to its technical support team. The ‘Live Chat’ logo appears on the website home page and upon access the customer is given the option of sending a request by email or entering a live dialogue with its support desk. This service is now increasingly gaining in popularity with its cus- tomers and, while some people would still prefer to pick up the phone, many use the on-line approach because it is a natural extension of a web search for products to provide a solution to a design problem and allows drawings, diagrams and photographs to be shared quickly and easily. This is now gaining in credence and the distributor has many examples of where an on-line discussion has led to an order being placed and, more importantly from the customer’s perspective, a problem solved.
New market and new products Another way for a distributor to expand business is to take products, skills and support services successfully employed in one market and transfer those to another with similar requirements. With its roots in the civil aircraft market and the company growing to be a well establish thriving business in
made an on-going commitment to the rail and mass transit industry serving principal manufacturers, subcontractors and maintenance and repair operators. Many leading manufacturers have developed a wide range of products designed particularly to comply with the requirements of this demanding and burgeoning industry and the distributor soon put together a range of products that include connectors, cable and wire, circuit breakers, equipment fans and blowers, lamps, relays, sensors, solenoids and switches designed for use in vehicles, rolling stock, trackside equipment, signalling, and communi- cation and information systems. Aerco is also approved by Link-up, an organisation that is recognised as best practice in qualifying suppliers, and is used extensively by buyer organisations to manage risk and comply with legislation. There are many similarities with the aerospace industry. Equipment is used in signalling, CCTV, braking systems, door control mechanisms, climate control equipment, passenger informa- tion and communication systems and in carriages, rail cars and on trackside equipment. Product quality and reliability is a must as the operating environments vary enormously and equipment is subject to severe stress, vibration and shock.
Paul Bandy is Product
development manager at Aerco
Aerco
www.aerco.co.uk Enter 201
Although Mil-specs do not apply, products have to conform to stringent international standards and so high standards are maintained. Other mass transit industries are similar and compa- nies like AB Connectors have a huge range of interconnect products for appli- cation in all types of vehicles such as trams, buses and construction vehicles. All distributors are only too aware that customers have a choice. To enjoy continued success they must forge strong relationships with their suppli- ers and have the financial means to support large stockholdings so that they can provide customers with what they want, when they want it and at the right price. And, in addition, they must be continually looking for ways to improve.
DECEMBER/JANUARY 2014 Electronics
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44