The electronics industry is characterized by a high level of volatility. Strategic access to the right global distribution network is critical to market mitigation.
The global nature of the electronics industry makes procuring quality electronic components — at the right number, at the right price — a considerable challenge. Choosing the right global distribution network can insulate your organization from the shifts caused by political realities (such as tariffs), natural events (such as hurricanes and earthquakes), and business realities (such as the pandemic or product shortages) by providing fast access to inventory all over the globe.
Examining the basics
Before we go any further, let us look at the basic criteria that your potential partner for electronic parts distribution needs to meet. These basic features lay the groundwork for a successful partnership:
- Experience in your specific industry
- Ability to deliver components on time
- Strong ties with component makers that provide access to high-quality components
- Robust access to online ordering and parts information
- Easy returns and replacement of products
- Competitive pricing
- Skilled and trained workforce
Which global distribution network works for you? Choosing the frontrunners
There are a number of capabilities and characteristics that make certain partners more useful in safeguarding your business and ensuring the supply of components across your entire manufacturing network. By working with an organization that has built a global distribution network, your organization can tap into a variety of benefits:
1. Strong regional relationships:
The global reach of your distribution partner can provide an intelligent connection to a broad range of suppliers in your manufacturing region.
2. Access to inventory worldwide:
A large inventory pool increases the pace of component deliveries and acts as a safeguard in the event of supply chain disruptions.
3. In-depth supplier knowledge:
Evaluating the reputation of a geographically distant supplier is challenging. A global distributor, on the other hand, has a hand on the pulse of regional sources and understands the true capabilities of those potential partners.
4. 24/7 customer support:
Round-the-clock support is a natural feature of a global distribution network. And so is knowledge of local labor laws, compliance challenges, and local customs that can make or break a company.
5. Technical know-how:
A high-caliber global distribution network leverages technology to ensure good communication and resilience in the face of supply chain snafus. Component and product tracking traceability is integral to such a network. The bill of materials (BOM) support should intelligently match your requirements with the right sources as well as monitor, track, and benchmark components on your BOM.
As important as having a solid distribution partner is, a partner with a global distribution network offers a wealth of benefits that are particularly valuable in the evolving world of electronics manufacturing.