Selecting the correct electronic components distributor is critical to meeting your delivery schedules when developing a new product. Choosing a supplier at initial pricing appears to be an easy decision; however, selecting a supplier who disappear or let you down when it counts most is not. With so many distributors competing for your business and all claiming same day or next day delivery with competitive pricing, it can be difficult to choose the supplier who can really deliver. The reality is that only a handful of distributors can meet these promises.
The decision of which printer to choose involves more than just the cost per label. At AML we have a range of printers within our division and have distributors within the industry as well as a good stock holding of relevant products. We can provide you with information and guidance to help you decide on the best product for your requirements.
Electronic Components DistributorYou can always visit the TechPount digital library, where you’ll find more insights that support and expand on this discussion.
Evaluate Product Range and Inventory Depth
Choose a distributor that will provide all the parts for your business to operate successfully, and avoid the need to seek out additional vendors to fill the gaps. Before choosing a distributor, compare the distributor’s product catalog against your company’s bill of materials (BOM). Ensure the distributor offers the exact part numbers that are needed. No substitute parts that make compromise in design.
While having a broad selection of parts is important, it is equally important to have enough depth in your distributor’s inventory. Just because a distributor has 50,000 parts on file does not mean that they will have enough quantity in inventory of critical components. Look for the re-order trigger in the distributor’s reports for key components and note if the component is in stock or out of stock. Some distributors offer real-time part-inventory information through their online portal. Others require an individual parts inquiry for each part number.
The supplier relationships can greatly affect the product’s authenticity and pricing within the distribution market. Distributors authorised to carry certain brands can provide competitive pricing, genuine parts, and priority allocation for in-demand products. It is best to ask the distributor for the list of authorised suppliers for the specific manufacturer and confirm relationships directly with the manufacturer.
When selecting distribution inventories, consideration must be given to your overall geographic coverage. Having the closest supplier does not necessarily mean you are best served by having the right amount of inventory at that location. DPA worked with a distributor in Australia that was farther away from a key customer than another potential supplier, however the Australian distributor had much deeper inventories. In this case, the slightly longer transport time was offset by the more robust inventory levels at the closer location.
Assess Supply Chain Reliability
The manufacturer looking for a great distributor and the distributor looking for a great manufacturer need to be able to tell the difference between a good distributor and a marginal one touting a lot of hype and empty promises. One way to do this is to demand to see the distributor’s historical accuracy performance metrics using components similar to those for which they are quoting. Examples of these types of questions might be: What percentage of orders are shipped on time? How does the distributor handle a last minute rush order for a part required to get a stopped production line running again.
Recommended distributors. These are places where we maintain a buffer inventory and have processes in place to handle supply shortages. We can tell you about the allocation process in the event of a component shortage.
Supply disruptions can occur at the least expected time, which is why having a good communication protocol in place is key. A good distributor will notify customers of any potential delay before the customer finds out from an error in their part notification or worse, from their customer. But the best distributors will even go so far as to notify customers of a delay and then provide an alternate part number for a part that may be available in time, or even offer a partial shipment to assist the customer in meeting their production schedule.
We source many electronic components from dedicated suppliers. This helps to reduce the risk of parts unavailable at the critical time to allow on-time delivery. Our processes and experience enable us to guarantee delivery from stock.
Verify Quality Assurance Standards
High quality components prevent accidental intake of counterfeit components and ensure that there are no manufacturing defects in our supply chain. We recommend that you ask the distributors about their incoming inspection process for components. Do they sample inspect each lot? What type of documentation and traceability information do they have for the components in their warehouse.
When searching for reliable aerospace part distributors, make sure you look for certifications like ISO 9001 or industry-specific processes like AS9120. These certifications don’t guarantee that the part distributor is honest and reliable, but they do ensure that a solid and well-established certification process is in place which typically leads to a quality process that will protect your business.
Review Financial Stability and Terms
The financial health of a distributor is a key factor in how well they will be able to support you now and in the future. Part of this will be their ability to hold sufficient stock, and to meet any delivery commitments set out in your agreement. So either look for references from other suppliers that the distributor has worked with in the past, or try to find publicly available information on the financial health, history and trends of the business.
Ensure the payment terms offer you healthy cash flow without over extending your finances. While more established distributors should offer you longer terms with loyal purchase, some electronic components distributors require immediate payment on purchase. Compare the Total Cost of Ownership before making a final decision.
Test Technical Support Capabilities
Our technical support staff with years of experience is crucial to our customers success. This support translates to your experience as we work through your project together. Take this opportunity to ask your tough questions during the evaluation process. Test some of their knowledge by asking component specifications or if they have application notes/design assistance on prior projects.
Support to the supplier was assessed in terms of the time taken to respond to queries. Support to this supplier was good with key technical enquiries being answered in a timely manner and sufficient information provided to address queries.
Selecting the right distributor to aid in design support is crucial, as the chosen distributor will extend your engineering team. They should provide basic technical support, pricing information, and value added engineering services above and beyond part number lookup. Identifying a distributor who can offer alternative components, facilitate on-time orders, and assist in troubleshooting critical design flaws to prevent project delays will add significant value to your design process.