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MeetingMarket deMand

As the electronics industry continues to rebound, ESNA spoke withMouser’s Senior Vice President of Business Operations, Pete Shopp, about some of the trends Mouser is experiencing

Mouser’s Pete Shopp

What do you think are the biggest challenges facing distributors today?

We are facing a

number of challenges. I would say part of it is inventory and leadtimes fromour suppliers. We are being proactive by having a dedicated teamto work with our suppliers to improve deliveries andmove ahead of the inventory curve. On an order basis, we havemore orders than we ever had before. The other issue is that distributors,manufacturers, and customers fear the prevalence of counterfeit parts in the channel.

What is the effect of that?

When the industry is at the point where product is not available through direct channels, the buyer will pursue other sources. It is at that time where the possibility of counterfeits enters into the equation. Mouser is amember of NEDA (National Electronic Distributors Association) and we are dedicated to providing factory warranted, genuine components. The guidelines set out by NEDA attacks this issue – the best way to prevent counterfeiting is to buy froman authorized distributor or amanufacturer.Mouser only purchases genuine products directly fromthe supplier or from factory authorized channels.

How do you address those challenges?

Obviously, as part of NEDA, we recommend buying parts from authorized distributors. Certainly froma customer standpoint they should know we only purchases genuine products directly fromthe supplier or fromfactory authorized channels. We are franchised for more than 400 suppliers and that provides a lot of options. In regards to counterfeiting, we are certainlymore careful on returns than we have been before. We also have a Quality Inspection Process which ensures product quality and order accuracy.

do you think there may be overbuying or that the demand is real?

I do believe a lot of this is real demand, and I think manufacturers believe this is real demand and are working to increase capacity. There is no doubt there is some double ordering going on and customers are desperate. But overall, there is a real increase in demand.

We are approaching an up cycle. This is a great opportunity – to

take advantage of the growth – and invest in our business. As early as 2009, we started hiring additional staff worldwide in order to keep up with the increase in the number of orders and lines that we received. Since then, we have added hundreds of new employees in all parts of the company and in all parts of the world. We will continue tomake investments inMouser so we can provide the best in class service and delivery that our customers have come to expect.

What do you think ismost important for buyers to know in this currentmarket environment?

Mouser will have the newest products available faster than any other distributor. Our customers should expect to receive best in class customer service from the branches and our website. Orders will arrive on time, and it will be exactly what the customer ordered.

For a company likeMouser, buyers should know we have over

300,000 parts in stock,more than 400 different suppliers, andmany of these are similar or interchangeable so [part number] crosses are available. I think there are options out there for a lot of products.

Certainly I would think the customer needs to evaluate the

product attributes and look at other suppliers, and they are doing that.Most companies have two or three approved vendors and a lot of the time we will have all of those vendors on our linecard. Between them, we probably have the product they need.

With our number of parts it gives buyers options. Where do you see themost growth coming from?

Growth is coming fromthe new products and global expansion. We are the distributor that both engineers and buyers come to for the newest products fromthe industry’s topmanufacturers. They know thatMouser will have the parts in stock for next day delivery. We also recognize the importance of providing the same top service to customers worldwide, which is why we havemultiple customer service centers in North America, Europe, and Asia. For our customers around the world, we provide over 40 web sites in different languages and currencies for an easy product search and simple online purchase. December 2010 | 19

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