Electronic Component Distribution News Updates
There is so much involved in overseeing a supply chain operation. You’re responsible for managing…
One of the reasons the Americas doesn’t have an established supply of rare earth elements…
Vitesco Technologies and onsemi today announced a 10-year long-term supply agreement worth $1.9 billion (€1.75 billion)…
TrendForce predicts a dramatic surge in AI server shipments for 2023, with an estimated 1.2…
IPC announced today the April 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical…
MEMS – or microelectromechanical systems – can provide several advantages in managing a supply chain.…
Ocean freight rates from Asia to the U.S. West Coast, which have been declining, edged…
ECIA’s 2D Barcode Specification published its last revision in 2018 to continue guiding the industry…
Raltron, a global leader in high performance frequency management components and wireless antenna products has…
The electronics supply chain faces several significant challenges. One of the most pressing of these…
Reshoring and foreign direct investment (FDI) manufacturing job announcements are continuing to outpace recent records,…
As foundries prepare for increased demand for leading-edge chips, OEMs are angling for capacity commitments…
The Electronic Component Distribution Business is an essential part of the electronics industry.
Distribution companies are often organized in various national and international distribution associations, such as IDEA. Distributors of electronic components are often used as an intermediary between the manufacturer of electronic components and the customer. This could be the case, if the customer’s order volume is too small to be handled by the manufacturer. But there are also other reasons.
In addition to component shipments, distributors often offer value added services, such as assistance in the customer’s design phase, or logistic services.
The service portfolio depends on the distributor’s strategic direction. There are distributors that concentrate on simple fulfillment. They buy components from the manufacturer in bulk and concentrate on re-selling. Others put their focus on value added services. These can be special design tools or design assistance through the distributor’s engineering staff.
However, distributors can also be distinguished by their product portfolio. Companies that offer a big variety of components are often called “broadline distributors”. But this type of business model is not suitable for all market participants. Some have specialized on specific niche products. For example, there are distribution companies that focus specifically on electromechanic components. Since these are often smaller companies, it’s an often more suitable concept, than trying to compete against bigger distributors.
