The year is starting out strong for the electronics distribution channel as many forecasts show signs of economic recovery despite the continued challenges of unemployment and high energy and commodity costs.
A reason for optimism is the recent Consumer Electronics Show that had its best turnout in three years with more than 150,000 in attendance. Wireless connectivity was a big deal at this year’s show, and hopes are that some of the new products related to this technology will usher in more consumer demand with increased electronics and technology sales.
We at Bourns believe the distribution sales focus in 2011 will begin to transition from one that is product-oriented to a more direct vertical market and application-centric approach. This new approach will help both customers and the distribution sales channel wade through the vast amount of products to help OEMs select the best component solution set for a particular application. Matching products to applications will also help streamline the design process, which can greatly enhance sales relationships and significantly build market share. This change in strategy and the results it brings is what every manufacturer and distributor ultimately needs to succeed in today’s market.
A challenging aspect to this strategy is that unified and consistent definitions of targeted vertical markets must be applied within the manufacturer and distribution channels. The benefit of the channels using a common terminology related to vertical markets is immense. Setting a common vertical platform will lead to continued improvements in customer and market support. But the big question is: Who will take the lead to manage the consensus of development and adherence to these definitions? Bourns is working with other constituencies to drive these market definitions.
We have aligned key vertical markets with our business units to better serve and address the needs of our customers. With this new vertical market focus, Bourns is positioning itself to grow faster than the market. It is our desire to work with our authorized distribution channel partners in concert with the Electronic Components Industry Association's (ECIA, formerly NEDA) Components Council to better define these differences.
As a member of the ECIA’s Components Council, I plan to submit a project for acceptance to the Council’s agenda repository. Once a committee is assigned, it will be their charter to make recommendations to the Components Council on the use of industry vertical market definitions. The Council will have the task of ironing out these differences to achieve standard definitions that work for the entire industry. Once complete, the Council will then submit a final recommendation to the ECIA board members.
This process could take six or more months, and I promise to report back with the approved and agreed-upon ECIA definitions. The stage has been set for change, and I hope 2011 will be the year that a common vertical platform will be defined for the benefit of the electronic components industry and its customers.
It seems to make lot of sense to create such a similar terminology for both manufacturers and distributors to better serve the OEM's. But I couldn't really understand what does the vertical products mean, is it some thing related different domains such as medical, defense and consumer, or is it something related to the component types such as actives, passives, rf and LCD etc.
Great points, Dick, and best of luck in creating those definitions. Part of the problem in the electronics supply chain is over-specialization--instead of being in the "memory market" you make flash or SRAM or DRAM or PROM or EEPROM or... Then there's "computers"...and servers, PCs, dektops, laptops, tablets and now "mobile computing" which includes smart phones. But in order for measurements to be meaningful or standards to be useful, you have to narrow things down and define them in some way--such as verticals. Trade associations have been instrumental in doing this and have come up with some real good guidelines. Thanks for your efforts.
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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