FEATURE DISTRIBUTION Keeping everybody happy
Paul Bandy, Product Development Manager at Aerco, discusses how distributors must tailor their resources to satisfy designers, buyers and manufacturers to maintain their competitive edge
many different forms. The initial response has to be prompt and informed and this will, hopefully, progress to a full design-in process and the supply of free or low cost components for trials and prototype builds. To supplement the help provided by the
technical support team, datasheets and technical specification have to be available on-line and at Aerco our Live Chat service, where an engineer can talk to our support team on-line, is growing in popularity. Many engineers are very comfortable
with using on-line tools to specify and select components but sometimes the help of an experienced product specialist is needed and there is often no substitute for the personal service you get from talking to someone directly. Manufacturers are increasingly looking
I
f you surveyed designers and purchasing professionals in the
electronics industry on what they want from an electronics component distributor there would be little divergence in the answers. At the development stage the designer would ask for a quick initial response, a high level of technical assistance, a wide range of products to choose from and free or low priced samples for prototype development. Once the project is underway, the buyer
would obviously demand competitive pricing but more importantly, would want a distributor with the resources, knowledge and willingness to co-operate and set up an effective inventory management system. The manufacturer would want a
distributor who had the technical ability and market knowledge to design components into a wide range of projects in the target industries while holding sufficient stock to service small batch orders quickly and efficiently. They might also encourage them to add value to help service small order quantities thus allowing the manufacturer to concentrate on strategic policy and high volume business. So a distributor must satisfy the needs
of the designer, the buyer and the component manufacturers. History proves that trying to be all things to all men can be a dangerous game to play but, fortunately, many of the skills required are common to all three parties.
10 MAY 2014 | ELECTRONICS
WE KNOW THE INGREDIENTS – WHAT ABOUT THE MIX? We have established the basic ingredients required but to get the mix right we as distributors have to decide what type of customers and markets we are going to target and what type of service we need to supply to ensure a successful business. It is a harsh fact of life that in choosing to
supply electronic and electrical components to a UK manufacturing industry that is in decline, we work in an environment where there is strong competition and pressure on prices and margins. It is our task to decide what we must do to give us an edge over our competitors. In the UK there is a continuing trend of
having fewer, larger distributors controlling the vast majority of the business. To smaller distributors at first this may sound daunting but it is in fact an opportunity that smaller companies such as Aerco recognises and on which they can capitalise on. Bigger, slicker, more automated
distribution outlets inevitably remove the personal contact between designers, buyers and their suppliers and this opens the door for us to provide a level of technical support and personal service that larger companies simply cannot match. Of course this service comes at a cost; recruiting, training and rewarding skilled staff is an expensive process. Technical support to designers can take
Deutsch 602 connectors, available at Aerco
to distributors to support their efforts to meet customer demands. One way of doing this is by adding value. Many distributors are terminating connectors, assembling cable harnesses or, as in our case, assembling connectors. We stock parts and assemble the Deutsch 602 connectors and a wide range for both TT Electronics (formerly AB Connectors) and Smiths Connectors (formerly Hypertac). By assembling on site, we can deliver connectors with an extensive range of contact layouts in small quantities with delivery times of typically two to five weeks but can be as quick as 24 hours. Whatever service we choose to offer
there is one inescapable fact. A successful distributor must be prepared to work on forming partnerships with their suppliers and both the engineers and buyers of their customers. These partnerships must be based on trust. We must share information with both our suppliers and customers with total confidence and confidentiality and work together to ensure all parties deliver their commitments. So as distributors we must be willing to
invest heavily in stock and recruiting and training top quality support staff. We also require a deep knowledge of the industries we serve and be in a position to seek new products and explore new markets to remain competitive. But that’s not enough; we also have to keep everybody happy.
Aerco
www.aerco.com 01403 260206
Enter 214 / ELECTRONICS
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