United Business Media Ltd. , the parent company of EBN and EE Times, has been tracking the global electronics component distribution market for decades, offering insights into the sales and operating performance of this crucial segment of the industry to enable OEMs, contract manufacturers, and component makers better understand the evolving dynamics of the market.
As part of this annual assessment, we publish a ranking of the Top Global Component Distributors online (both EBN and EE Times) and in the print issue of EE Times. (Click here for the 2010 Top 25 Global Distributors ranking.) This year's listing will be published in May for distribution at the National Electronic Distribution Association's annual Convention in Las Vegas. The show, dubbed EDS, will take place this year from May 24 to 26 and is being held in conjunction with the Electronics Components Association, which has joined with NEDA to form the Electronic Components Industry Association.
In this year's package, we will be featuring articles on the role of distributors in the electronics design chain and exploring how the industry segment has evolved to take on additional responsibilities in response to customer demand. The introduction of value-added services -- including design, supply chain management, end-of-life information, and other engineering-related functions -- has helped components distributors remain relevant in the market and safeguard their operating margin as prices continued to decline across the board in the high-tech sector.
As part of our own service to the industry, we want to ensure the ranking is as comprehensive as possible and would appreciate any feedback that can help us achieve this goal. The Top Distributor ranking is based on verifiable sales, which we source directly from companies and also through public records for those enterprises that are publicly listed. In the case of private companies, we look to get third-party verification through auditors or via investment firms.
In addition to the ranking, we will also be compiling a list of all distributors globally. This list, which will be updated on a constant basis, will be available online on EBN to all our readers. So, even if your company's sales are not big enough to make the Top Distributor ranking, I want to encourage you to send details about your operations to EBN.
Also next week, UBM will be sending out the questionnaire for the Annual Distributor Brand Preference Study, a benchmark report on how customers rate their distribution partners. This year's questionnaire, to be mailed out Wednesday, March 16, will feature questions on how design engineers, procurement professionals, and OEM/EMS executives rate the services they are getting from distributors in a wide range of product markets, including semiconductors, connectors and interconnects, power and passive components, and electromechanical devices.
In recent years, the study has been expanded to include a review of more recent service offerings from the distribution market, including Internet commerce, the use of social services, prototyping, supply chain, and logistics.
It is interesting to know that EBN has created the database to tract the most effective TOP 25 global distirbutors. Does EBN consider the networking strength of these companies as part of the criteria for efficiency? What is the effect of sourcing on ability of these distributors to rank high among others. Most stable companies swallow up the staggering ones that can not read the signs of the time. Is there any monitor on what can help the baby distributors find their feet in what they believe in?
Tim, You were right. We used to track the Top 50 Distributors. And that was only about 10 years ago. In North America, it's a struggle to count 25 today whose sales can be independently verified and can actually be considered major players in the market.
That the market consolidated was expected and perhaps desirable but it also meant the big guys have gotten much bigger and the smaller ones have almost disappeared into niche sectors. Distributors are a resilient bunch, though. They, more than any other segment of the industry, have always been good at reading the signs of the times and have always responded smartly either with new offerings and initiatives or by squeezing out inefficient competitors.
EBN's Top 25 list will be global -- to the extent we can independently verify sales -- but we are also creating a database of all distributors, big and small alike. This database would enable customers identify small but equally efficient players. It might also start another round of consolidation!
This is going to be really atough exercise. I wonder howmany factors does actually effect the distrbutor rankings. Does prototyping with respect the supplier parts is one complicated measure and not many except the Tier1 distributors can actually get good marks.
Looking forward to seeing this data in May. Some years back, the annual Top 50 (yes 50 at the time) Distributors Supplement was an eagerly awaited issue at EDS, along with the annual OEM Buyer Preference study.
This is a great initiative, it has the potential to bring some "underdogs" to the limelite, giving them an opportunity to show what they can do, while also enabling them to see where they are short of others in the chain.
Coming out with event like this will surely create more competitiveness in market. Especially as more sensitive and high critical things are going smarty/digital.
Undoubtly Designers/Assemblers of the electronic devices expect more qaulitative electronics components so also suppliers/distributors will need to up the customer service request. I think ranking might drive the market seen more of quality and better services.
Bolaji, I believe your/EBN tecnique of collecting details, infos, suggestions to make ranking distributors list closer to the market from customers point of view, is very nice and could support all professionals across the globe in their job and tasks. Nowadays services from distributors are crucial in the electronics arena and it is not easy to map them in a comprehensive way in terms of quality perceived.
Could it be the chance to understand better how distributors are "integrating" Internet & Services from social providers for countinuously improving ?
By moving to the core of the industry and offerings services that keep the system humming, a group within the electronics market has rendered irrelevant the question of ownership and control of the supply chain.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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