COVER STORY


The art of value-added distribution


Daniel French, MD, Transonics talks about the distribution market and how Transonics is contributing to the market


T


here have been many changes in electronic component distribution in the last 15 years. Many old names


have disappeared – either because they failed to adapt to new market conditions or because they were acquired – some massive global players have emerged and so-called ‘high-service’ distributors from the USA have risen to challenge established UK ‘catalogue’ brands. Leaving aside the six or eight household names, there are other distributors that have been successful because they have chosen a different path – generally providing services that the majors can’t or don’t want to. Such services are often termed value- added, but what does this really mean? At one time, value-added distribution meant kitting, or assembly, design-in or buffer stocking. Now the term is even wider, and pretty much every distributor could tick the value-add box in CIE’s distribution directory. I suppose the real definition should rest with the customer: ‘is my supplier providing a service function that I value?’ If you take our case as an example, we


offer a very diverse range of services that all add value, including:


• PCB – including design support and fast turn around • Cable assembly


• Franchised manufacturing partners • Far East sourcing • MCU programming and device marking


• Huge, non-allocated stocks on key lines – currently £3m worth of inventory


• Supply and logistic solutions including production kitting


• Consignment stocks; dedicated buffer stock • Fixed price agreements and multi- currency transactions • Custom power solutions


Now a PLC and a subsidiary of Castello Holding Company Ltd., Transonics was formed in February 1976, as a family business built on traditional services, support and an ethical approach to the well-being of our staff, customers, and supporting the community at large. We have developed our business by acquisition and the development of strategic partnerships, whilst delivering consistent quality and an ever-growing range of technology solutions and value-added services. Transonics can supply all products that are in current production, and holds 100 million devices across 13,000 product lines at our warehouse located in Leicester, UK to service our customers globally. We also advise our customers ‘end-of-life’ notifications and ‘process changes’ as you would expect from any franchised outlet in the UK. All products are covered by the manufacturer’s warranty with full batch traceability. We provide a certificate of conformity with each delivery and, on specific request in advance, can provide the original manufacturers certificate. The real value we bring to our customers is our unique business model and the wide range of bespoke solutions and services we offer.


Large stockholding


Illustrating the commitment we make to both our franchised manufacturing partners and our customer base, our deal


Image 2: Transonics delivers bespoke customer solutions


with Hongfa. At the start of 2017, Transonics signed a distribution agreement with China’s leading relay supplier and manufacturer, Hongfa, becoming the first UK company to be offered such a distribution contract. Now, we hold the largest stocks of Hongfa relays in the country, right across their entire product range. Hongfa has an annual production capacity of 1.5 billion pieces, supplying over 40,000 relays from over 150 series. Through a programme of continuous improvement and investment in research and development, the company has established itself as the world’s number one relay company by units manufactured. Its products are used across varied disciplines and industries, such as healthcare, transportation, industrial and domestic goods. Hongfa’s quality is as good as any other


respected brand. The company owns the largest relay testing centre in China and can self-certify to VDE, UL/CSA and CNAS. It is certified under the ISO9001, ISO14001, OHSAS18001, IECQ/QC080000 systems. While other leading manufacturers are seeing lead times on some products go out beyond one year, Hongfa’s leadtime is only 12 weeks; UK customers, of course, can access many Hongfa products immediately from Transonics’ large stocks.


PCB services – quick turn-around, volume production and design support Transonics has enjoyed a long-standing relationship with Shenzhen PCB manufacturer, X-Mulong Circuit, which is certified ISO 9001-2008, ISO 14001-2004 and ISO/TS 16949-2009. The company provides PCB manufacturing services to


Image 3: Transonics holds the largest stocks of Hongfa relays in the UK Image 1: Transonics combines a unique business model and value added services 8 June 2018 Components in Electronics www.cieonline.co.uk


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