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

Some, but not totally all, distributors have already adapted to the change by providing more than simply a product. They have shifted from strictly distribution of components and connectors to include value-added services, such as for instance 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 proficient in these products available to them or aware of the newest component technology. There clearly was 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 task of educating the OEM has become the responsibility of the distributor. This places the onus entirely 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 manufacturer doesn’t look beyond its own product line when assisting the designer/engineer with part design. A distributor with a wide selection of products and product knowledge can provide the OEM viable alternatives they might not have known existed.

When designing a complete system, the designer/engineer is confronted with several challenges through the entire development of the project and may overlook conditions that are essential to the success of the design. As the distributor services many different customers from various industries, it’s exposed to diverse applications utilizing many different design concepts. The distributor can utilize this expertise to offer suggestions and alternative answers to the OEM, possibly avoiding costly design mistakes.

Consultative Selling

Today’s distributor needs to make use of consultative selling. It will need the information to assist the designer/engineer when troubleshooting problems such as for instance inter-connectivity issues or environmental concerns. Will it come in contact with gases, liquids, pressure as well as salt spray? Think about the size, shape and configuration of the machine? Design panels do not necessarily permit adequate space or unusual locations. Think about mating? The distributor can provide alternative mating solutions so the OEM isn’t forced to rely on one manufacturer. The distributor must certanly be knowledgeable enough to evaluate 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 happening at the distributor level is product customizations. For applications where standard products or solutions are not always available or a manufacturer isn’t willing to work well with the OEM on a brand new design, today’s value-added distributor can offer customization services such as for instance plating, custom cable assemblies and custom pin configurations. Not totally all distributors have this capability, but those who do add significant value with their relationships using their customers. Inturn, this creates loyalty, and it’s loyalty that keeps the client coming back.

The New Distributor

Today’s successful distributor must stock a wide selection of inventory to truly have a differential advantage in the marketplace. They can typically reduce manufacturers’ lead times from weeks to days. Like, BTC Electronic Components (BTC) – 총판모집 a value-added interconnect supplier – can offer 24 to 72 hour delivery on back panels and custom connectors to the aerospace and military markets that traditionally have experienced lead times all the way to 12 weeks.

Sales through distribution will continue to improve over the next few years. A big part of this is because OEM’s have started to depend on theirs relationships with distributors a whole lot more so than its relationship with the component manufacturer. OEM’s depend on the distributor for his or her product expertise, in addition to, design because redesign today simply costs too much time and money. A correct solution must certanly be found quickly and on the very first go-round.

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


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

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