Catalog distributors enhance online offerings for buyers
By Purchasing Staff -- Purchasing, 12/11/2008 2:00:00 AM
Catalog electronics distributors have increased their product lines in recent years to attract new buyers and to increase business with OEMs that already purchase from them. At the same time, catalog distributors are enhancing the functionality of their websites to make it easier for buyers to find and purchase parts.
While both engineers and buyers purchase components from catalog houses, buyers have different requirements and concerns than engineers. "For one thing, buyers want to spend the least amount of time possible in doing a transaction," says Dan Stewart, director of eCommerce at Allied, a catalog distributor in Fort Worth, Texas.
He says purchasers know what they are looking to buy and have a part number in mind when they visit Allied's website or call. "They are looking for price and availability."
He says on Allied's website, buyers can find the parts, but also see the number of items Allied has in stock for any part.
"It's real-time information," he says. "So if they need 100 of an item, they can see we have 1,000 in stock and they know we can fill the order right away."
Allied has an online tool called Purchasing Manager that allows buyers to find and buy parts. The tool can also set up a workflow process where buyers can send orders as requisitions and the appropriate approvals for the purchase can be included in the process.
"Many companies want a workflow approval process to make sure their purchasing requirements are being met for their organization," Stewart says.
Mark Larson, president of Digi-Key in Thief River Falls, Minn., says that ease of doing business is important to buyers, which is why Digi-Key developed its online "in-house store."
Digi-Key's Toolbar feature allows purchasers access to Digi-Key's inventory and product information. Buyers can do part searches and check their recent search history. "We also have the functionality that notifies buyers when parts they have purchased in recent years are about to go obsolete," Larson says. "It gives them an opportunity to make last time buyers and provides them information about substitutes."
Electronics buyers are also concerned about the inventory levels of their distributors. He says most distributors have a return in investment model. "It implies they stock to meet the orders for customers, but often times they don't carry any excess beyond on the needs of current customers," says Larson. If those needs change, they don't necessarily have reserved inventory.
"Reserved inventory is an inherent part of our business model," says Larson.
In an effort to make it easier for buyers, Chicago-based distributor Newark recently announced a new online tool designed to seamlessly turn quotes for electronic components into processed orders. eQuotes tries to simplify the purchasing process for buyers.
When requesting a quote from a Newark representative, a buyer can ask for an eQuote. The buyer will then receive an e-mail with a link to a detailed quote that has part numbers, manufacturer names, descriptions, the quantity quoted, expiration date, line-item status and prices. To add products directly to a shopping cart, the purchaser need only check a box next to the line item, and then continue through checkout.
Buyers are "extremely time-pressed, and eQuotes enables them to quickly and seamlessly place their orders online at their convenience, without picking up a phone or using the fax," says Barry Litwin, senior vice president of marketing and eCommerce for Newark.
Buyers also get help with obsolete parts at Newark's website, says Kurt Gehring, the website manager for Newark. "When they locate a part that is obsolete, at the bottom or in the middle of a page is a link that takes them to the substitutes that are readily available for that SKU (stock keeping unit). They can compare up to five different products and can sort by price."
Catalog distributor Jameco has added 90,000 SKUs to its catalog over the last several years. It has invested time and effort into integrating its catalog and website together to provide all the information that buyers are looking for, says Greg Harris, vice president of marketing for Jameco in Belmont, Calif.
The website contains much more information about parts than the print catalog.
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