Distribution Outlook

Distribution Outlook: Distributors Explain their Strategy for 2021

In our Distribution Outlook Report, we ask a simple question.

What do Distributors of Electronic Components expect from this year, and how are you going to reach your target?

Find out what top of the class Distributors Digi-Key, TTI, Fusion Worldwide, RS Components, Rochester Electronics and Anglia Components have in store for the first half of 2021 in our latest issue.

The Distribution Business of Electronic Components is an essential part of the electronics industry. As an intermediary between manufacturer and customer, Distributors play a vital role in the global manufacturing of electronic devices. They need to know exactly what the customers want, but also, what manufacturers expect from them, in order to stay succesful.

In our Distribution Outlook you will get the chance to see what’s behind a successful distribution business, gather valuable market intel on what’s to expect in 2021.

Everything starts with a good buying center that maintains close relationship with the manufacturing companies. When times are tough, as we have seen during allocation years, business is done with people that you care about, rather than just sheer number crushing by a few cent. Apart from pricing, the right selection of components needs to be done, in order to keep up with the market needs.

The key component for a distributor is its warehouse and logistic capability. The selected and bought components need to be stored according to their specification (e.g. dry pack), in a system that allows for warehouse staff to quickly access the goods. A high cargo handling quote ensures that components don’t sit too long and need to be scrapped in the end, because of obsolescence or other reasons.

In order to provide the best service possible, and to distinguish from the competition, many distributors offer a broad variety of additional service to the customer. These might be logistics services with a special component handling, or design support.