Distribution
Making electronic component ordering easier
CIE recently caught up with Mark Laing, regional business development manager at electronic component distributor DigiKey, to find out more about the company and its plans
process is slick, and we can get the product out as quick as 20 minutes from when the order was placed.
DigiKey recently announced that it had added more than 1.1 million new parts and 455 new suppliers in 2024, which is a huge investment isn’t it?
Could you tell us a bit about DigiKey? DigiKey has been around since 1972 as a private company owned by Dr. Ron Stordahl. Dr. Stordahl started the company selling the “Digi-Keyer” – a kit for ham radio operators that helped transmit Morse code. That led to selling components. A couple of decades later, we had our first website, and we’ve since grown into the e-commerce company that we are today. We sell top technology components across 180 countries to nearly a million customers.
DigiKey?
While many claim to have the largest inventory in the industry, we have the largest selection of electronic components and automation products. We also have many tools on our website that make customers’ lives easier. Whether you’re an engineer or a buyer, you can get what you need, from design to getting a quote done quickly. We also have a forum where you can get questions answered quickly 24/7, but if you need help, there’s people available for that as well.
I think the ease of doing business is a big benefit. I’ve heard from a lot of customers that we can deliver to the UK faster than a lot of
48 March 2025 Components in Electronics
customers’ suppliers who are based in the UK. 48 hours is our delivery time into the UK from the United States. We don’t have a warehouse in the UK; all our products are shipped from one location, Thief River Falls in Minnesota. Having multiple warehouses can cause a lot of disruption; you might get one part you need, but others might be coming from another warehouse in a different location, which can cause delays, whereas we can do it all in one hour. We have everything in one place, the
Yeah, it’s a huge, huge investment. In total, we have 15.9 million components from over 3,000 quality name-brand manufacturers on our website. The breadth and depth of product we have is significant and industry leading. We want to continue to grow that number, and we’re increasing our customer base as well. We want to partner with the best manufacturers and make their products available to purchase.
Do you envisage any challenges this year?
The last couple of years have been tough for everyone. I think the downturn in the market has been less impactful for us than for some of our competitors. There is still some excess stock, but this is decreasing, and we’re very well positioned for when the
market turns. The main challenge I see is if the upturn happens at the same time across many customers.
We’re seeing a lot of green shoots, too. There are a lot of new designs coming through, which is promising, especially in Asia. They’re normally the first region to start to pick up after a downturn. Therefore, things are looking up, and I think growth will be slow and steady from the second half of this year. Going forward, I think customers will be more wary of ordering in excess as they have done the last couple of years. DigiKey can help by holding parts exclusively for customers at no liability; rather than going out and buying the products they need, we can hold it for them, and they can call us when they need it.
What markets do you think will
Wireless connectivity, industrial automation, smart sensors, AI, and machine learning may provide opportunity for DigiKey. Rapid prototyping is something we see more and more customers needing, and we’re in a good position to service that business. Other sectors on the increase that haven’t really stopped, even during the downturn, are medical applications, wearables, and remote monitoring. Aerospace and defence continue to grow at a rapid rate.
We haven’t stopped investing during the downturn the industry is experiencing. We’re heavily investing in our infrastructure, bringing more automation to our warehouse wherever we can. Our business has grown so fast, we need to make some adjustments. We recognize that, and we’ll continue to invest in the right inventory, right parts, and latest technology and give customers as much choice as possible.
https://www.digikey.co.uk/ www.cieonline.co.uk
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