Less than a year after Amazon shook up things in the business-to-business supply chain, here comes Google. The search giant has launched a beta version of Google Shopping for Suppliers, which right now is focused on the electrical and electronics industries.
Amazon Supply, which serves a host of different industries, now features more than 600,000 parts in areas such as industrial and test equipment. As Bolaji Ojo put it in a post last year when that venue was unveiled:
If you supply products to the electronics industry, the archrival you should be concerned about may no longer be the company you've competed against for decades. It's Amazon.
Why do we care that Google, which rarely treads softly, has also entered the fray? Forrester Research estimates the B2B e-commerce market at nearly $560 billion. By comparison, the worldwide semiconductor industry is worth nearly $300 billion, of which distribution accounts for about $75 billion, and a fraction of that rolls through e-commerce.
Google's approach is typically easy to use. When you're on Google Shopping for Suppliers, you can punch in a search for, say, "FPGA." It returns a range of results, most not specifically about programmable logic devices but involving packages, DSPs, and other components that work with or in FPGA environments. Google-certified suppliers show up at the top in the paid results slot. In this case, that means US Digital (featuring a microstepping motor driver). Google has certified suppliers in the United States, China, and Germany.
Different approaches
The results are raw right now, but you should remember that this is beta. You can see where this story is headed.
Now, understand that the Google model -- a search-centric one connecting searchers and sellers -- is different from Amazon's (buy parts through Amazon). But Google's entry into the B2B e-commerce space is another disruptive milepost.
I know distribution executives are of two minds. Some sleep fitfully thinking about the Amazon/Google potential for encroachment. Others sleep like babies, knowing Amazon and Google would have to radically change their models to go head to head with electronics distributors. That said, there's near-term leverage potential for suppliers negotiating with distributors. In an EBN reader poll last year, more than 41 percent of respondents said they would buy or had already bought parts through the Amazon service. The interest is keen.
So, you're a semiconductor supplier. Are you hot to trot for this? Hot to cut out the distribution middle man? If you're in procurement, do you see the rise of Amazon and Google services such as these as a powerful potential cost saver?
"And of course from the viewpoint of purchasing managers, they would like also to search with detailed spec. For example, they can specify like mechanical spec, electrical spec, etc."
Alex, I think later they will include advance searches with various fine parameters. As of now they are providing only simple search options.
Hey Brian, most leads from our website come from Google, so in that sense it seemed like a good fit. We promote our company through a few different hosts, and track each month who comes in, and where do they come from. This one is too new to tell. We have only been with them a short time, and so far no leads have come from them. I am curious to see what leads will come from them, and what kinds of leads, and if it will improve our search engine rankings with Google as well.
And of course from the viewpoint of purchasing managers, they would like also to search with detailed spec. For example, they can specify like mechanical spec, electrical spec, etc.
Alex, it seems that as of now they are listing the products available with US and neighbor hood countries. Once, if found success , hopefully they will expand the wings to addressing various local markets across the globe.
Brain, it seems that most of the corporate companies are trying to sell directly to customers without any third party interventions. Such direct selling offers may helpful to companies for selling the items with a better price and easiness. From customer point of view, they can have the quality product at a discounted price.
When it comes to good search result, we tend to think that Google will do a good job.
However, at the moment I tried the Advanced search, only 3 countries can be selected: USA, CHina and Germany. Probably they should have more options like showing results nearby, or sorting by price.
@Burnsy, thanks for this! Can you tell us why your company decided to join the program, what you've learned so far and whether you'd recommend it to peers in this community?
@tirlapur, you are right. The interesting thing - mobile e-commerce trend is not actually tilting to one side of the world as we have had in other technologies in the past. Also, the developing world is indeed ahead in mobile e-commerce as of today, thanks to liberalisation of telecommunication sector. But mobile tools are quite available may be other defficient areas. And what tools do you think companies need providing?
Topping the list of the world’s biggest electronics distributors were Avnet and Arrow,followed by WPG Holdings, Future Electronics,
and WT Microelectronics.
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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