@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!
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 ?
@ 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!
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...
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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