Distribution
Redefining the role and scope of distribution
CIE Magazine talks to Debbie Rowland, director at Charcroft Electronics, about the company’s decision to adopt a hybrid distributor/manufacturer model
CIE Magazine: Why is Charcroft’s distribution model so different from those used by global distribution? Debbie Rowland: Charcroft was established to be different. While other distributors focus their linecards on semiconductors, our focus has always been on the specialist passive and other components used by the very harsh and high-end sectors.
The semiconductor-led linecards of other distributors target customers who manufacture in high volumes. In contrast, Charcroft’s tight linecard was built to support sectors which operate at the highest end of the reliability ladder. Think of sectors such as space, defence, oil and gas, specialist automotive and even the highest of high- end audio. Here, the focus is on delivering the specialist expertise which is needed to support very high-reliability components which are used in relatively low volumes. This profile of high specialist service and low manufacturing volumes is not one which fits easily with distributors who focus on selling semiconductors to high- volume customers.
How does Charcroft compete with the major global distribution networks?
As a privately-owned UK-based company, our options are far wider than the options which are open to global networks. That means that the responses that we deliver to each challenge can be faster as well as being more individual and innovative.
The pandemic has been a key test for all distributors and it has shown how the different distribution models can impact the way in which challenges are met. The global distribution networks have to find solutions which are deliverable worldwide. It is true that they have significant clout and place high-volume orders with component manufacturers, but there is less clout when the components are needed in smaller volumes and with super-high levels of reliability. Also, some component
20 March 2022
manufacturers have already stopped taking new orders for components which are on very extended lead-times. This is where even global issues can be resolved by taking a more granular and localised approach and by thinking outside of the box.
What solutions have been delivered by thinking outside the box? By basing all of our distribution and manufacturing teams in the UK, our customers have access to a team of local field-based product specialists. This has allowed customers to access the technical skills needed to support even the toughest applications.
This specialist knowledge lets us go deeper into identifying alternatives to components which are on extended delivery. By talking to the customer, we can find out why the original component was specified and the product specialists can adjust the parameters to identify a viable alternative.
Having a strong approach to quality is also essential to deliver the traceability which is essential for high-reliability components. That is why Charcroft electronically archives every delivery note and certificate of conformance (CofC) so that this information can be retrieved and checked to answer any future questions.
How have solutions been developed for individual customers? Maintaining price stability is just as important as maintaining component delivery. To help individual customers to stabilise pricing over the longer term Charcroft has introduced stabilised price agreements. These agreements are a two-way commitment in which the customer agrees a stabilised price for a critical component and Charcroft holds inventory of those components for the duration of the agreement. Under the new stabilised pricing agreements, some components which will be received by Charcroft in 2022, will be held
Components in Electronics
Debbie Rowland, director - Charcroft
and then shipped to the customer from next year to 2030.
Why did Charcroft decide to add component manufacturing to specialist distribution?
Many distributors offer value-added services such as cabling and assembly, but Charcroft has gone further by adding component manufacturing.
The first time that Charcroft branched out from distribution was in 2003 by acquiring Ashcroft Ceramics. This was to prevent their capacitors becoming obsolete when the company closed. Charcroft acquired the company and production was moved to our distribution offices in Wales. Since then, we have helped customers to avoid obsolescence by acquiring other manufacturers and product ranges.
A new specialist manufacturing facility, based in Wales, was added in 2010. This allows us to manufacture custom passive assemblies in low volume and to add custom value-added modifications such as longer leads, special fixings, labels, coatings and
markings. Customers can use specialist manufacturing so that they can fit available components into legacy PCB spaces, or achieve more complex solutions in a tight space. The latest acquisition was in 2021 when ICW and ClarityCap joined Charcroft and the ClarityCap Purity range of high-end audio capacitors was launched.
What are the most important factors in delivering responsive customer support?
To be effective in meeting dynamic challenges, a distributor needs to identify the problem quickly and have the flexibility and willingness to develop and deliver innovative solutions.
We have maintained very close partnerships with our customers for over 45 years and this is one of the reasons why we have remained independent. These long- term relationships allow us to listen to our customers and to deliver solutions which really address their challenges.
www.charcroft.com
www.cieonline.co.uk
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
