The real test for Amazon will be the next shortage market. When things get tight, suppliers dole parts out to their biggest and most strategic customers and distributors. If Amazon hits a certain level of volume with suppliers, they might make the cut. But we can be assured that if that happens, we will hear a lot of noise from the electronics supply chain. Amazon doesn't provide the kind of training, product support and sales services that electronics distributors and even online sales sites provide. But if you are a casual buyer, Amazon's service is awesome, and no matter where it comes from, a sale is a sale.
Ariella, Your comment is spot on. Many companies fail to take advantage of the goodwill generated in good times to advance their operations into new areas and increase sales. As you pointed out, Amazon has a good reputation in the market already and if it can leverage this now to expand into new areas the better for the company. As several other folks have commented, many people are already using AmazonSupply. It may be a new service to many of us but for those who are quicker this is already an old service that seems to be getting better in meeting their goals.
Amazon has established itself as a pretty reliable company. Its setup and good name has even attracted a number of online suppliers who have their own portals to set up storefronts through it. So it should be able to have quite an impact on the supply chain.
I really don't know how far amazon can take this, but i don't think this can get as far as components sale can it?
I checked out the site and their stock is amazing, and i can just imagine the groups increasing from 14 in the near future, you can even place orders by phone internationally and get technical product support.
Amazon has marked itself in this business - online retail. I think, handfull of online purchasers would give vote of confidence in patronise Amazon including myself. In the past, totally OKed with products bought at Amazon, no regret or return of materials though. I wouldnt say whether that would remain as it's spreads to electronic components.
Anandvy, Amazon itself has a reputation to protect. The company is not a manufacturer itself but it has built a business on selling original items to customers and cannot afford to damage this reputation. It is also not an open market where anybody can sell whatever they like before it is vetted so it is highly unlikely that it will pass on substandard parts. Still, buyer beware. Right?
I forgot to mention this in my blog (thanks to the EBN reader who reminded me) but Amazon Supply is not entirely a new service. It is new to Amazon but the company is leveraging an acquisition it made earlier. It got into the business by buying smallparts.com, which apparently was already a reputable firm selling components and equipment to manufacturers.
What Amazon has added is its incredible reach and marketing savvy (we are discussing the operation, now for instance, because of Amazon.) It is also adding to the service. As you noted, previous customers of Amazon will check out this new service and try it out based on their positive experience with the company.
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.
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.
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.