Distribution Distributors can help reduce costs for OEMs


GD Rectifiers talk to CIE about how customers are starting to use distributors for design expertise


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ore distributors are providing design support today to help OEM customers, ranging from maintaining data-rich websites complete with datasheets and reference designs to offering customers full-blown design services on a bespoke consultancy basis. Purchasers at many OEMs often choose a select few distributors in certain countries/regions to have exclusive rights to their product lines, the distributor provides supply chain value and value-added services that can reduce cost and risk. Many customers are now


acknowledging that distributors have extensive design expertise and knowledge of the industry that it would be unreasonable not to fully utilise their skills. Distributors have a technical team that are well placed to answer questions on new


designs or component requirements in designing a brand new product. Many OEMs are operating with smaller engineering teams and can sometimes lack the in-house technical expertise required for certain technologies.


Distributors have always been seen as an extension to a customer’s business, providing technical expertise, account management, securing the best possible prices from OEMs, holding stock and scheduling call-off orders. Over the past few months’ distributors have seen an increase in demand for design expertise from customers. Paul Bentley, managing director at GD Rectifiers, said: “We are seeing some interesting enquiries develop from our recent marketing campaigns, a lot of these projects are specialising in new technologies


and require our technical expertise. We are always happy to help customers with their projects and have seen quite a few exciting developments over the last six months. “Distributors are becoming known as the go-to-market specialists because they are able to design bespoke solutions for customers. Customers demand a better product knowledge than what they did 10 years ago and there is more of a focus on localised engineering expertise today.


“GD Rectifiers offers a multitiered design service, from advice on obsolete parts to a full engineering solution for customer designs. By using us as a distributor, customers get hands on experience with OEMs products and how they can be used in applications. We work hard to bring customers the right products and solutions at the best prices.”


www.gdrectifiers.co.uk Size isn’t everything in distribution


“Despite, or perhaps because of the size of major international “catalogue” distributors, there remains a place in the supply chain for independent specialist distributors,” said Paul Raynor, JPR Electronics. He explains more


difficult for OEMs to fulfil, minus a few exceptions. The growth and merger of large global distributors would seem to provide a cost effective and efficient sales channel for OEMs, but in practice there are difficulties. Small manufacturers often find it very difficult to qualify for inclusion in the catalogues of large distributors and get share of mind from both their marketing and field sales efforts if they do. Large distributors have to focus their efforts on key suppliers. The cost of this to their smaller ones is the loss of any promised “design-in” efforts which are mostly focussed on their key larger competitors. There is a space in the supply chain for


Paul Raynor D


istribution is a key part of the supply chain offering component manufacturers sales channels close to their customers and local stock holding to provide short lead-times for their products. Electronic component manufacturers


rely on distribution to reach their markets. They do not, or cannot afford to have their own sales offices to handle small volume orders which are costly and logistically


www.cieonline.co.uk


smaller, independent distributors able to fill these gaps. Smaller manufacturers will get greater share of mind from a specialist distributor and larger suppliers will find increased design effort being made on their behalf to reflect their importance. Specialist distributors frequently supply products also available from the major stockists and provide suppliers with a more focussed sales channel. There are a number of advantages to customers when buying from a specialist distributor: • A long-term personal relationship with an established account manager


• A better understanding of the customer’s particular requirements


• The ability to source components outside the distributor’s main franchises


Wide range of electrolytic capacitors available from JPR Electronics


• The possibility of holding buffer stock to shorten lead-times


• The provision of a kitting service to supply a complete bill of materials (BOM) to OEMS or CEMs


• The flexibility to modify or customise components to exactly meet the requirements of an end product, reducing component count and manufacturing times


• Better provision against component obsolescence. The more personal and relationship based nature of the business model of independent distributors offers a valuable service to large component manufacturers and a channel to market for new or “me to” suppliers offering cost effective, form-fit-and-function


replacements for more expensive components available elsewhere. Independent distributors can also


respond quickly to changing market demands, new product innovation and supply shortages in the marketplace, ensuring their customers can met the needs of their new product developments and maintain continuous manufacture. JPR Electronics is such an independent distributor, established in 1979 the company has a global network of Franchises with more than 12,000 product lines from stock, enabling the company to provide an extensive range of products to electronic and electrical product manufacturers.


www.jprelec.co.uk Components in Electronics September 2017 23


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