Electronic technologies constantly change the global economy and at the core of the transformation is the electronic component industry. This evolution is forcing a paradigm shift in the manner electronic component distributors must conduct business, now and in the years into the future, if they wish to succeed.

Some, but not all, distributors have adapted to the change by providing more than a product. They’ve shifted from strictly distribution of components and connectors to add value-added services, such as for example just-in-time (JIT), custom design capabilities, assembly and kitting, in addition to engineering services.

Benefits for OEMs

Offering value-added services provides several benefits to original equipment manufacturers (OEMs) and their designers/engineers. OEMs are not always experienced in the merchandise available to them or aware of the most recent component technology. There is an occasion when manufacturer’s representatives were the conduit through which customers were educated on the manufacturers’ product offerings. Today, manufacturers are dramatically reducing their outside sales forces, and so the duty of educating the OEM is now the responsibility of the distributor. This places the onus on the distributor to be a specialist in what they sell or face the consequences of lost opportunities.

This shift benefits the OEM because a supplier doesn’t look beyond its product line when assisting the designer/engineer with part design. A supplier with a wide variety of products and product knowledge has the capacity to offer the OEM viable alternatives they may not have known existed.

When designing a whole system, the designer/engineer is confronted with several challenges through the development of the project and may overlook issues that are crucial to the success of the design. As the distributor services many different customers from various industries, it’s subjected to diverse applications utilizing many different design concepts. The distributor has the capacity to use this expertise to offer suggestions and alternative solutions to the OEM, possibly avoiding costly design mistakes.

Consultative Selling

Today’s distributor needs to work with consultative selling. It will need the data to assist the designer/engineer when troubleshooting problems such as for example inter-connectivity issues or environmental concerns. Will it be exposed to gases, liquids, pressure as well as salt spray? What about the size, shape and configuration of the system? Design panels do not necessarily permit adequate space or unusual locations. What about mating? The distributor will offer alternative mating solutions therefore the OEM isn’t forced to rely using one manufacturer. 총판구인구직 The distributor must be knowledgeable enough to judge the surroundings, size restrictions or obsolescence of the components being designed in, and then inform the designer/engineer of any possible issues while offering viable solutions.

Another change occurring at the distributor level is product customizations. For applications where standard products or solutions are not always available or a supplier isn’t willing to work well with the OEM on a brand new design, today’s value-added distributor has the capacity to offer customization services such as for example plating, custom cable assemblies and custom pin configurations. Not all distributors have this capability, but the ones that do add significant value to their relationships with their customers. In return, this creates loyalty, and it’s loyalty that keeps the customer coming back.

The New Distributor

Today’s successful distributor must stock a wide variety of inventory to really have a differential advantage in the marketplace. They could typically reduce manufacturers’ lead times from weeks to days. For instance, BTC Electronic Components (BTC) – a value-added interconnect supplier – has the capacity to offer 24 to 72 hour delivery on back panels and custom connectors to the aerospace and military markets that traditionally have experienced lead times of up to 12 weeks.

Sales through distribution will continue to improve over the following few years. A large element of the reason being OEM’s have began to depend on theirs relationships with distributors much more so than its relationship with the component manufacturer. OEM’s depend on the distributor for their product expertise, in addition to, design because redesign today simply costs an excessive amount of time and money. A correct solution must be found quickly and on the initial go-round.

The electronics industry is consistently evolving, and value-added distributors have their fingers on the pulse of new trends and technologies. They’re in tune to these changing trends and will often have the resources to implement, and at times, perfect the idea. You can find notable examples when a distributor has been in charge of an industry design that is now commonplace.


Component distributors cannot always be everything to everybody. What they can do is find their niche(s) and service their customers well. It is essential for distributors to offer continuing education programs to their organizations, and keep current on emerging technologies and markets, in addition to constantly changing old markets. Whether large, small or mid-sized, a vendor must offer quality products and on-time delivery. But above all, it must add value to the OEM and its engineers/designers.