‘Mastering’ a Niche in Distribution

NO RATINGS
View comments: threaded view | newest first | oldest first
Barbara Jorgensen
User Rank
Blogger
Master distributors
Barbara Jorgensen   12/4/2012 3:30:00 PM
NO RATINGS

I'm wondering: how big is the master population in the electronics supply chain? I've always been aware of the model, but I have a hard time naming more than a few companies...

rederringer
User Rank
Blogger
Re: Master distributors
rederringer   12/5/2012 6:58:11 PM
NO RATINGS

@ Barbara - Like the eCatalog distributors, where four companies dominate in the electronics components space, master distributors are also a limited and unique group. There are only a few companies fully committed to the space - even fewer that have successfully transitioned to become integrated links within a supplier's channel strategy. As a result, some of the traditional electronics components and eCatalog distributors offer some of the services historically provided by a master distributor, but the complementary yet non-competitive nature of a true master distributor differentiates from those that offer only a few items from the menu. Here I am referring to food again - time for dinner!


Thanks for the comment and the question!

t.alex
User Rank
Supply Network Guru
Re: Master distributors
t.alex   12/6/2012 9:04:24 AM
NO RATINGS

Interesting analogy to illustrate the concept of master distributor. Is it true that when they sell to other distributors, the margin is not as good as selling directly to customers ?

rederringer
User Rank
Blogger
Re: Master distributors
rederringer   12/6/2012 2:07:17 PM
NO RATINGS

@t.alex - Thanks for the comment and the question. While a different business model than selling products to end users, the business model is much the same as any other business in that a master distributor has to provide value to its distribution customers and its vendor partners. In my Thanksgiving Dinner analogy, all that attended brought something to the table and there was room at the table for all!



More Blogs from Unchaining Supply
For many companies in the supply chain, selling excess or aging products into unauthorized channels for pennies on the dollar makes sense.
Distributor rationalization can hurt everyone, but careful planning and management can help limit the sales impact.
A well-planned master distribution strategy can reduce the inherent inventory risk in promoting three, four, or more NPI packages within the channel.

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Upcoming Dialogues
REMIND ME
Live Chat 10/30: Top 10 Metrics That Enhance Procurement Performance
We'll be talking about the 10 most important procurement performance metrics, from the old standards to new and emerging best-practices.
10/30/2014
Remind Me
Live Chat 11/06: Enterprise Risks, Intellectual Property & Supply Chains
Enterprise risk management (ERM) frameworks can be useful to identify, assess, and manage intellectual property (IP) risks that arise in supply chain compliance. We'll look at real-world examples and strategies for mitigating those risks.
11/6/2014
Remind Me
Archived Dialogues
Live Chat 10/16: Applying a Macroeconomic Lens to the Supply Chain
EBN blogger Apek Mulay will be our guest as we talk about how macroeconomic reforms have the potential to impact the supply chain.
Live Chat 9/25: Minimizing Risk in the Global Supply Chain
Dave Bowen, CEO of e-sourcing firm MarketMaker4, will be our guest as we explore ways to minimize and manage geo-political and corporate risk in supply chain and sourcing through the use of technology.
Latest Poll
EBN Newswire
FORT WORTH, TX   10/24/2014
Allied Electronics Releases 2015 Catalogue
NEU ISENBURG, GERMANY   10/24/2014
Arrow Receives Its First Responsible Recycling ...
Twitter Feed
EBN Online Twitter Feed