Distributors in electronics

Distributors in electronics

In a complex market like the electronic components market, what role do independent distributors play?

In the electronic components industry, independent distributors along with brokers are essential to help manufacturers protect obsolete and out-of-service parts, a task not covered by franchise distributors. While independent distributors and brokers have the same essential function – helping buyers and sellers find each other – this is where the similarities end.

The value offered by a broker is to procure electronic parts when necessary, but generally lack in providing other services, such as a comprehensive quality inspection process, discrepancy checks, and visibility to existing market conditions, but above all the vision to create a lasting relationship with the client such that if only “contaminated”, dangerous, unsafe merchandise is found in the market, the independent distributor advises its client to abandon or take all necessary precautions. For the independent distributor, the focus then becomes the protection of the relationship over time. The motto of the broker, however, is “any chance you don’t take is lost forever” and therefore will do everything to sell regardless. This is why the scope of services of electronic components distributors extends far beyond a simple business transaction.

Know your supplier

The independent distributor can be defined as an established company that can offer a broader structure with additional resources such as a global network, quality control through a process that includes various types of inspection, excess inventory management, and market information to provide extended services before, during and immediately after the transaction. Independent distributors can invest in these additional resources, while a broker may not have the capital or real estate to offer them at all, and even if he did, he would have a different goal. In addition, the independent distributor is more interested in building a strong relationship with the client, so much so that he or she defines a path with goals to be achieved. In case he cannot complete the task, he will try in every way to help the client, even giving him all the necessary information, so that he can optimize the order with another player. The independent distributor bases its activity on building lasting relationships with its customers.

Here are the features that independent distributors have

Market Intelligence

Independent distributors can provide valuable information about what is happening in the market and in a dynamic market like electronics, it is crucial. In fact, they act a bit like stockbrokers, dealing in electronic components instead of securities. Regardless of whether the customer is facing a shortage, obsolescence, or the need to manage surplus inventory, commodity managers can help the customer make a considered long-term decision based on changing market conditions. This decision can ultimately equal cost savings and reduce risk in the supply chain.

Quality management

An independent distributor can offer a rigorous quality inspection process using the latest testing equipment, inspectors or engineers trained and certified for this segment and a supplier management program to ensure the authenticity of each component received.

For example, if you are looking for

  • 5AGXMB3G4F31I3
  • EP20K200EBC652-2X
  • EPM2210GF256I5
  • EPCQ128SI16N

you can be sure that the large independent distribution level would only offer you pieces produced and not discarded by Altera.

Global Footprint

Independent distributors can have strategically located facilities around the world, with a consolidated global logistics infrastructure and integrated systems that can provide a wide range of services, from warehousing to packaging to shipping.

High standards

Independent distributors are generally required to adhere to stricter industry standards and because they offer more resources than brokers, they can also give the buyer a higher level of security. Independent distributors of more professional electronic components will assist the customer 360 degrees by constantly monitoring the product from shipment to delivery. In case of problems or discrepancies, they will be present and ready to solve the problem.

Are you ready to take advantage of the features of a reliable and secure independent distributor? Contact us and put us to the test.

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