Small Business

Electronic Component Distributors Need Value To Succeed

For many years now, the electronic components field represented a market to be in for many. Virtually every town in the world, from North America to Europe, to Australia, have and make use of electronics components that sold all types of electronic shops.

Electronic technologies have transformed the global economy. At the center of this change is the electronic components industry. This change has revolutionized the way business has to be done by distributors of electronic components if they are to succeed.

Digsemi.com distributors have embraced this transformation through offering additional services. They have moved from simply distributing connectors and components to also offering value-added services, for instance, just-in-time, engineering services, custom design capabilities as well as assembly and kitting

It’s very important to use high-quality electrical components, even though you may be tempted to buy low quality electrical components. Low-quality components may be cheaper, but you won’t feel safe when using them.

You need to remember that low-quality components can contain various hazardous and dangerous materials, such as mercury and cadmium. These heavy metals can actually put your life at risk; they are stored in your body, which eventually can cause you major organ damages. In case they are disposed of as part of your household waste incorrectly, they can harm the environment.
Every manufacturer obviously needs to increase the component’s lifetime. This can only be done by selecting quality components. It is considerably salient to use the components that do not easily degrade with time. Below are some examples to justify this point:

  1. Avoid using fuses, instead use circuit breakers.
  2. Use software controls instead of manual switches

Benefits of OEMs

Providing value-added services creates many advantages for original equipment manufacturers (OEMs) as well as their engineers. Sometimes OEMs are not aware of the products available for them or the most recent component technology. Not long ago, customers used to get an education about their manufacturer’s product by the manufacturer’s representative. Currently, they have greatly reduced and continue to reduce their outside sales forces leaving the task of education on the shoulder of distributors. As a result, distributors have to be knowledgeable about the product they are selling or else they will lose numerous business opportunities.

This change is beneficial to OEMs since the manufacturer only considers its own product line when helping their designers with part design. A wide range of products coupled with product knowledge enables the distributor to provide the OEMs with plausible alternatives that were not available before.

Consultative Selling

Today’s world requires distributors to make use of consultative selling. They need to be knowledgeable in order to help engineers with troubleshooting problems such as environmental concerns and inter-connectivity issues. In order to evaluate the environment, obsolescence or size restriction of the electronic components being designed and discover possible problems and solution so as to inform engineers, the distributor must have sufficient knowledge.

The New Distributor

For distributors to be successful in today’s world, they must have a wide variety of inventory in order to have a competitive advantage in the market. They can basically reduce the lead times of manufacturers from weeks to days. For instance, BTC Electronic Components (value-added interconnect supplier) can provide 24 to 72 hour delivery on custom connectors and back panels to the military and aerospace market which in the past had lead times of up to three months.

A sale through distribution is projected to grow over the next couple of years. This is mainly because OEMs have begun to establish closer ties with distributors than with manufacturers. They depend on the product expertise of the distributor as well as design since redesigning can be very costly and a plausible solution has to be found quickly and efficiently.

Reducing the use of Unique components

Components do vary significantly in their sizes and the way they are used regarding their costs. So as to retain the general cost of the component, developing authentic and standard constituents should be done. When the manufacturer has a small number of distinct components, the possible losses are greatly reduced.

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