Spotlight On
A spotlight on Rutronik – designing the turnaround
Lots of things are currently changing: digital transformation is in full swing, changing our daily lives and demanding new business models. Many countries are facing economic and social challenges. This month, the spotlight falls on Thomas Rudel, CEO Rutronik, who describes to CIE the effects of this on distribution and what Rutronik is doing to continue on its path of success
So how do you succeed in finding a way out of this dilemma?
That's a good question! Seeing as a distributor of our size needs to have a global strategy, it's impossible for us to avoid currency fluctuations. The only solution which is likely to help is when customers shoulder some of the burden the fluctuations cause.
Globalisation is a word on everyone's lips these days: how has Rutronik managed to develop business in Asia and the USA?
Thomas Rudel, CEO Rutronik
Rutronik now belongs to a small minority of privately owned distributors of considerable repute and capability. How difficult is it becoming, as an independent business, to compete in a market characterised by globalisation and concentration?
The biggest challenge for us at the moment is the enormous currency fluctuations, something we've never had to deal with in the past. You only have to look at what's been happening to the dollar this year – unbelievable! The customers of course would like to pass the risk on to distributors who cannot possibly cope with this in the long run. Since the situation is set against the backdrop of extremely long-term payment targets and the fact that margins are constantly being squeezed, and don't forget that distributors are having to provide more and more services – usually free of charge. You only have to look at the profit before tax of large distributors to see that there's very little capacity to cope with losses. Nowadays, banks no longer offer suitable solutions at favourable conditions to overcome the risk of currency fluctuations.
36 June 2017 Components in Electronics
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It was really important that Rutronik adopted a global mindset and approach a few years ago! This is the only way we are able to go wherever our customers need us. We are incredibly happy with developments and will continue to slowly
but surely expand our local presence both in Asia and the USA.
Which other tricks does Rutronik have up its sleeve to help it stand out against its competitors?
Our logistics services are extremely comprehensive, and this sets us apart from our competitors. Furthermore, our customers really do receive everything from a single source – and that's customer service at its best! Since it also includes components that do not necessarily create value. The price plays a less significant role, as it's more about fast availability and logistics. This is only possible with the appropriate warehouse environment – and nowadays that's a strategic decision. Our new warehouse unit which was constructed here in Eisingen in 2015 and our warehouses in Asia and the USA act as a marker for our customers and guarantee them the required availability they need. And our sales organisation Rutronik24 enables us to deliver small quantities and samples in a short period of time.
Would you say the idea behind Rutronik24 of supplying companies whose requirements are a little different to those of traditional Rutronik customers has been a success?
Definitely, yes! We'll therefore continue to
expand Rutronik24 worldwide and will ensure it becomes established as the distributor of small quantities – and obviously with products from every manufacturer of which Rutronik is an official franchise partner.
The universal buzzwords are currently Industry 4.0 and IoT. What is Rutronik's strategy to tackle these challenges?
A distributor must offer and continue to develop the right range of products. We combined these two essential features back in 2014 with our specially tailored offerings RUTRONIK SMART and RUTRONIK EMBEDDED: SMART covers IoT applications such as wearables, healthcare, smart homes, and security solutions; EMBEDDED allows us to provide everything for industrial applications with connection to the gateway up to IPC-based systems, incl. wired and wireless connectivity. The franchise with Intel was a key milestone in this effort.
Why is this cooperation so special?
Intel has made our portfolio complete. In terms of wireless and sensors, embedded boards, industrial memories, and displays, we were already in a good position. As an Intel distributor we now additionally offer processors, mainboards, and memories
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