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[Engineering Feature]

Distributors Evolve Beyond The "Component Store" Tag


The days of just "order and ship" are long gone. Distributors' value-added services make them a trusted partner in the design process.

Lisa Maliniak  |   ED Online ID #10360  |   May 26, 2005

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Designers know where to turn when they need parts. Distributors have provided the nuts and bolts of OEM designs for decades. But now, it's not just about supplying parts. Today's distributors also offer value-added services that smooth the path from concept to manufacturing.

In the past, distributors mainly provided simple fulfillment services, delivering components to customers when needed. But new challenges and requirements have altered the playing field: shrinking product lifecycles, increasing product variety, multiple design and manufacturing partners, mounting global competition, and environmental compliance. The simple order-and-deliver model no longer meets designers' changing and complex needs.

Because design engineers must be more productive with fewer resources, many rely on distributors' value-added services at various design cycle stages. Examples of service span a wide range, from simpler tasks like part labeling and kitting to technical support and inventory control. Though distributors always offered some assistance in component selection, their deeper-than-ever well of resources helps designers make optimal picks.

Design engineers do need the assistance. A 2004 Electronic Design reader-profile survey asked participants to list the professional issues that kept them up at night. Almost a quarter (22.5%) of the engineers surveyed stated "specifying the right products/ vendors for my design." Almost half (49.8%) indicated "staying current with new and emerging technologies," while 24.4% listed "component availability issues." On a scale of one to 10, 44.3% of respondents rated finding the optimal component for their designs an eight or higher as a pressing problem in their work. Distributors' value-added services address these issues that plague today's stressed designers.

"I've been with Avnet Electronics for 25 years," says Greg Frazier, executive vice president for Avnet Electronics Marketing. "I've seen Avnet evolve from primarily picking and packing products from off the shelf to offering value-added services to providing solutions in collaboration with designers."

Distributors have worked hard to determine what assistance their customers need during the various phases of their product design cycle. "Customers require different technical services at different times," explains David West, vice president of marketing and design services for Arrow Electronics. "It's important to offer value throughout the entire process."

For example, distributors help with component selection early in the design cycle, deliver technical support during design, and offer inventory control during manufacturing. As a result, OEMs increasingly turn to distributors to help with tasks they used to handle in-house.

Distributors' rosters of services began to expand rapidly in the mid-1990s. Their service options have grown to a point where they're now often the distinguishing factors between distribution organizations. Though some value-added services are free of charge, most have an attached fee.

Early on, distributors can help in the conceptual phase of design. By considering cost, availability, and performance factors, they can optimize a designer's component choices. In addition, distributors can inform design teams about new and emerging technologies or about products that add previously unknown functionality or actually exceed the goals set forth by the engineer.

Many distributors employ application engineers to help with up-front component selection. Such engineers, trained by component manufacturers, can provide excellent support to designers who need to find the best-suited parts for their product design. Once designers define their product, distributors can present them with a list of parts that will meet or exceed their design goals.

For example, Arrow Electronics Inc. offers ArrowEDGE. This brochure highlights the new leading-edge products from Arrow's suppliers. It's customized with 40 to 50 parts that are appropriate for a given customer's particular market and design projects. Issued several times each year, the brochure gives designers a rundown of what's new in the industry.




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