FEATURE DISTRIBUTION
A FLEXIBLE SUPPLY CHAIN IS THE KEY TO CUSTOMER GROWTH
Steve Rawlins, CEO at Anglia Components explores how web based platforms are enabling new distribution service models, providing improved customer experience for the components supply chain
agree daily, weekly or monthly shipment cycles with consolidated invoicing to suit both parties. The booking in of shipments should also be automated to ensure quick and simple replenishments; hand-held scanners and the like can be issued to minimise the risk of errors. Anglia advises it has seen two initiatives that have really supported its small and medium sized customers; Anglia Sigma and Anglia 80/20. The former is a comprehensive, free dashboard that provides analysis of forward, current and historical orders and enquiries, as well as a vendor rating feature that shows the company’s delivery performance. With this, the distributor is aiming for complete transparency in its trading relationships. Anglia believes it is the first and only electronics distributor to offer this level of information absolutely free of charge to all its customers, through an instantly accessible online portal. Anglia 80/20 offers a new level of flexibility
016 proved a good year for the industry and too for Anglia, and 2017 is continuing that trend. Figures released by the ecsn show that UK electronic components sales revenue grew by 24% in May 2017 when compared to the same period last year. It shows that the UK market is in great health, with SMEs taking full advantage of the low value of the pound to boost their export sales. To be able to do this successfully they need flexibility in order to exploit demand spikes and also have the capacity to expand rapidly to meet these opportunities. That requires an instantly accessible stock of commodity components without having to commit cash up-front with many SMEs forced to choose between longer lead times or investing in their own buffer stock. Distributors will often provide consignment stock or in plant inventory held at the customer’s manufacturing site (paid for as used) to insulate their largest customers from the impact of this change. Whilst this does address the lead-time issue, it still places the emphasis on the customer to manage the inventory. They are invoiced as the inventory is used, but still need to keep track of the remaining stock levels, and place replenishment orders to address their
2 8 SEPTEMBER 2017 | ELECTRONICS
anticipated demand. Due to the administration involved, consignment stock or in plant are typically only offered to high volume users. To ensure the market continues its growth,
it’s the responsibility of distributors to invest in the UK’s vibrant small and medium sized electronics manufacturers and find a flexible, instantly accessible inventory of commodity components on an invoice at usage basis, thus allowing the customers to grow. For many customers, this inventory needs to be held at a UK warehouse for reliable same day or next day delivery. On some occasions, customers need instant accessibility and want stock of their regularly used components on site, but many entrepreneurial businesses lack the inventory management experience and rely on the distributor to manage this stock to avoid costly excess and expensive line stops due to shortages. A web based system can step in and provide
a solution whereby component usage is tracked in real time, leaving manual usage reports and spreadsheets a thing of the past. With a real time, web based system, consumption can be tracked and replenishment adjusted in accordance with changing demand patterns. Distributors and customers can work together to establish a formula for replenishment and
Figure 1:
Anglia's ‘single scan’ booking in system
in the supply chain, which was previously only available to large volume users through consignment/Vendor Managed Inventory (VMI). There is no start-up cost. Customers receive an agreed level of inventory on their regularly used commodity components that are held on their site providing instant accessibility. The level of inventory is scaled according to the customer’s forecast demand and is only invoiced as it used. Distributors now need to level the playing field and offer smaller customers a similarly flexible approach that helps them to grow without tying them up in paperwork. Customers need zero lead time, zero up- front cost and zero management cost. Using Web based platforms is a good all round solution. SMEs are the fastest growing customer sector and as these customers expand, help is needed to grow and create a flexible supply chain that services all needs, when they need them without superfluous inventory. Many distributors are already doing this for their largest customers so it is more than possible to implement for their smaller customers also.
Anglia Components
www.anglia.com T: 01945 474747
/ 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 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
