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SUPPLY, DEMAND AND CRISES: BENEFITS OF ELECTRONIC COMPONENT DISTRIBUTORS

Posted by ,29th Nov 2023

There are a number of reasons for using an authorized distributor of electronic components beyond the extraordinary times we are experiencing right now. With over 415,000 distributors in the United States alone, there are options for buyers at any level - whether those needing a small number of components or major manufacturers trying to buy millions of dollars worth of a specific component.

As SourceToday noted recently, “getting the right parts to the right place at the right time— all while providing high levels of value-added services and support—distributors play a critical role in the electronics supply chain”.

While the current pandemic has seriously impacted the supply of components given the high percentage of manufacturing done in China, previous years have also seen drops in supply as demand has increased and new technologies have bought up limited resources.

Working with distributors has a number of agreed upon benefits.

  1. Smaller order amounts - many manufacturers have high minimum order numbers, while distributors can bulk buy and sell the components in smaller numbers. And while the price may be slightly higher than what each component would have cost if bought in bulk, the ability to only order what you actually need lowers the overstock sitting unused but increasing your overall costs.
  2. Quick delivery, lower shipping costs - using a local distributor can also get you quicker delivery - as opposed to waiting for a manufacturer in another country to make and then ship (with potential additional fees). Local shipping costs or the ability to actually pick up the components from the local distributor can seriously save expenses.
  3. One stop shopping - distributors buy from numerous suppliers and keep inventory so that buyers can order multiple parts made by different companies all in one order. Consolidating orders can save money and time, and also save buyers from dealing with import laws and customs paperwork.
  4. Better customer relations - distributors have sales teams and product educated support that smaller buyers may not get from large suppliers. You may not have the time or money to attend the numerous industry conferences or to keep up with changes in components being made. The right distributor will have helpful staff and provide you with support “helpful when it comes to solving technical issues and making wise purchase decisions about the right electronic component.”
  5. Get advance warning of part obsolescence - major manufacturers rarely inform all their customers when a part they use is going to no longer be manufactured. Distributors keep track of these notices and order parts to make sure their customers are not caught without.

So remember, a “reliable electronics components distributor can be your great resource. That’s because distributors gather, categorize, and allocate parts for their customers.

So, if you don’t want to search for different manufacturers when finding particular parts, then using a distributor will make it easier to source all the parts from one location,” as TechGeekers notes.

While electronic component distributors are middle men, they do provide a value add and buyers should take advantage of them.

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