Thursday, March 30, 2017

Understanding The Type Of Distributors In The Supply Chain Industry

An electronic component distributor plays an integral role in the entire supply chain mechanism of an industry and thus is becomes important to take into consideration the type of distributors that comprise various sections of the market. Different distributors can have different kinds of approach towards business and thus one needs to be completely aware about them.


Although, it is very difficult to have any definitive categories for the electronic components distributors as the industry progresses at a rapid rate and a significant number of organizations are fighting to gain edge and secure more market share within the changing market scenarios. In the following lines we will look at some prominent types of distributors in the segment, have a look:

Type 1 - High Service: These distributors have a large inventory not only in numbers but in terms of variety with an approach to deliver them as quickly as possible, their average time for distribution is 24 hours. They are prominently used for small production runs and development purposes.

Type 2 - Specialized: These are the distributors with a specialization in a specific trade. For instance- a distributor can have a specialization of dealing in electronic components, while the other might have the capability of handling obsolete part distribution.

Type 3 - Broad-line Distributor: These distributors are well versed in dealing with organization who are into production and require regular supply for large scale production functions. They handle the entire the whole production of production and take take care of the storage part. Their experience in the trade makes them a good choice for small-scale delivery but, they are more inclined towards finding clients with a large scale quantity demand.

Type 4 - ISMO- Independent Sales & Marketing Organization: These distributors are better considered as agents who have the ability to organize and arrange the component supply as and when required. They do not hold any stock with them but, with their good connections they are always there to fill in the gap and can prove to be very useful in a wide range of circumstances.

Therefore, always take the aforementioned details in mind and remember that the process of choosing a distributor can be very comprehensive and usually a single one may not fit into one category. Choose your supplier wisely and have a good process in your organization.

No comments:

Post a Comment