Electronic Component Distribution News Updates
The pace of U.S. manufacturing activity in September hit its lowest level in more than…
Avnet announced a distribution agreement with AnDAPT, a leading programmable power management semiconductor company. Effective…
Roman Davydov According to Gartner’s survey Lessons Learned From the 2022 Supply Chain Award Winners,…
Component sales through the rest of 2022 are forecast to drop, but some businesses in…
Aiming at sensor fusion application development, Rutronik has created a single Arduino-compatible board with a…
In the first episode of this six-part series, KATEK SE CFO Dr. Johannes Fues describes…
Will Kibler In today’s turbulent market conditions, authorized electronics distributors serve as key partners, forging…
Digi-Key Electronics has opened its Back2School Prize Draw sweepstake, giving college students a chance to…
Durable and secure connections for industrial and automotive applications. Signal connectors from the 140 series…
Leaders in the electronics industry have been honored by Supply & Demand Chain Executive’s “Women…
Phil Stoten Editor’s note: The electronics industry has been suffering from a talent shortage for…
Industries relying on ocean freight for the bulk of their shipments continue to see decreasing…
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.
