| Overview
So,
what is distribution's
impact
on your business?
BY
HEIDI ELLIOTT
hough
specifics depend on what type of company you are supplier,
OEM, contract manufacturer the general answer is that
distribution plays a significant and sophisticated role
in helping you do business. It's happened over time, this
shift in responsibilities onto distribution's shoulders.
The trend got a big boost with the advent of, and subsequent
large-scale adoption of, outsourcing.
| |
 |
For
many companies, distribution sales represent 55 percent
of business. And most just don't have the kind of time
or resources to deal directly with their entire customer
base. So, focusing on a very select few OEM customers,
the distribution channel is charged with handling the
rest. Other semiconductor companies report similar trends.
OEMs have even started to show a preference in going through
the reseller channel in order to take advantage of distribution
value-added services they don't want to perform inhouse.
And this can help the speed time-to- market, including
in-plant stores, kitting, design services, and supply
chain management.
In
Distributors
Do It All, we outline the role distribution
companies play in the businesses of some of the major
semiconductor manufacturers, and how those companies are
using distribution companies to bring their products to
market.
E-Commerce
is the latest addition to the business picture, and the
biggest unknown. The Worldwide Web is the modern Wild
Wild West and the electronics industry is still grappling
to discern how it will shape up. There are multiple models
at work, including portals, auction sites, exchanges,
sites for excess inventory, obsolete parts, and more.
The Web Portal
sets the scene of today's online environment and highlights
some of the major players, explaining their business models
and what they believe their value proposition is for the
electronics OEM.
As
time-to-market pressures have increased, one distribution
service has emerged as vital to the health of the OEM:
supply chain management. With the complexity of manufacturing
increasing as companies expand globally and outsource
production to contract manufacturers in different locations
around the world, managing the flow of components in the
correct quantity at the right time is crucial. SCM:
The Key to Distribution's Success examines
the importance of supply chain management to the electronics
industry and highlights the workings of those supply chain
management services offered by distribution. Added to
the mix is the role of the contract manufacturer and the
Internet.
Passive
component suppliers have also seen distributors increase
in importance as they go to market, though that wasn't
always the case. It has only been in the last few decades
that passive component suppliers have embraced distributors
as partners in bringing their products to market. In today's
business environment where demand for passive components
is extremely high, the passive component suppliers rely
on the distribution channel to meet the needs of their
OEM customers as best they can. Mixing
Up Distribution describes how passive component
companies have developed the critical distribution strategies
needed to survive in the marketplace.
|
Search
the Web for more on "semiconductor distributors"
or simply enter a new topic.
|
|
