Electronic components and brokerage: should companies use independent distributors to source and buy electronic components?
For years, electronics industry associations, manufacturers and their authorised distributors have warned buyers to only purchase parts directly from manufacturers or authorised distributors because this was the only way to guarantee the authenticity of parts.
Professional independent distributors recognise that counterfeits are a serious problem in the electronics supply chain. Consequently, they have instituted rigorous screening and testing processes to identify fake parts and they use an established network of suppliers to ensure correct and continuous sourcing. A credible independent distributor therefore is able to trace parts back to the original component manufacturer.
Sometimes, component manufacturers sell parts directly to non-authorized distributors, even without any formal distribution agreement. For example, if a customer approaches a reputable, high-profile distributor not authorized for all vendors to purchase the following electronic components:
You can be sure that the distributor will buy the required components directly from Cypress Semiconductor‘s new owners, Infineon Technologies.
The purchasing departments of some large OEMs and EMSes do this, and a number of them have a few selected independent distributors on their approved supplier lists. Although these companies may purchase most of the parts they need for production directly from semiconductor and component manufacturers, they also purchase some parts from their approved independent distributors — especially if stocks are low.
The key to purchasing safely and successfully from independent distributors is to research and qualify them like you would any other supplier.
The independent distributors used by these OEMs and EMSs are all selected and qualified prior to an initial purchase order being placed to ensure that:
First of all, their prices and delivery options are very often more advantageous than those of ‘official’ resellers. This is usually because independent distributors are able to provide a true and broader view of the market because have a fundamentally different structure to authorized distributors.
The latter usually have a longer internal supply chain i.e. buyers have to track significant amounts of data on different product lines and consequently cannot always stay right up to date on individual sellers and/or with individual customers, whereas independent distributors have streamlined structures in which the employee who deals directly with the customer can also interface with the source of supply/manufacturer.
Secondly, such distributors can also find obsolete and discontinued parts on the market within a short period of time.
In addition, some companies opt to do business with independent distributors because the latter frequently offer the purchase of excess stock. Indeed, this allows companies to get rid of unnecessary and unwanted stock in their warehouses.
Interested in taking a closer look and experiencing the positives of buying through an independent distributor? Feel free to contact us and let’s build a winning relationship together!
Blog article categories:
Search news articles:
