Inventory, tech support and communication top buyers' wish lists for distributors
By James Carbone -- Purchasing, 11/13/2008 2:00:00 AM
Please stock sufficient quantities of parts, even if on speculation.
That was one of the top things buyers who responded to Purchasing's recent survey on electronics distribution said they wanted distributors to add to the services they already provide.
And while you're stocking spec parts, hold some safety stock for low-volume parts, wrote one buyer in the comments section of the survey. One other buyer added the thought that when distributors don't have stock, they should provide "better information" on lines they have that could be good substitutes.
Purchasing conducted the survey of electronics buyers by e-mail in September to determine, among other things, additional services the buyers would like from distributors, additional information they would like to see on distributors' websites, buyers' criteria for evaluating distributors and their planned purchases from electronics distributors.
With 10% percent of respondents requesting it, more inventory actually was in a three-way tie for first place among the additional services buyers said they wanted. Knowledgeable customer service/tech support and better communication ranked equally high. Wrote one respondent: Distributors need qualified customer service people to talk with buyers when they call with a question. Wrote another, more bluntly: They need someone who actually knows something about electronics.
Lower prices ranked low among additional services buyers wanted, but high on evaluation criteria.
Pricing information, however, ranked high on the list of items buyers said they want to see on distributors' websites. Twenty-two-percent of respondents selected that option. But, again, inventory stock levels trumped pricing information, with 29% asking for that on websites. Nineteen-percent of respondents asked for data sheets and application notes.
The need for better information in the form of specs or data sheets garnered the most comments from respondents who took the opportunity to expand on their check marks on the questionnaire. Buyers need deeper technical specifications and especially accurate mechanical footprint information, wrote one respondent. Another pleaded for distributors to include pictures and details of parts on their websites. Others asked for links to manufacturers' websites.
Not surprisingly, buyers responding to this electronics-distribution survey said that the Number One criteria they use in evaluating distributors is on-time delivery. Ninety-eight percent gave that measurement top billing.
Delivery and parts availability are always critical for buyers in any industry and their internal design and manufacturing customers, who live in fear of production shutdowns because of lack of parts.
In a Purchasing survey on industrial distribution last spring, buyers of direct materials ranked delivery and availability in the top three on the list of things they look for in distributors. Quality ranked first. But, buyers of non-production materials ranked parts availability the number-one thing they look for. And, in a separate, recent survey, metals buyers said product availability was what they wanted most from steel suppliers.
Eighty-seven-percent of those responding to the electronics-distribution survey said having the lowest price was their top criteria, while 75% leaned toward broader, deeper inventories and 71% cited quality technical support. Only 38% of respondents said they look for design-in support capabilities in distributors.
Almost 30% of respondents said they plan to buy more from electronics distributors over the next 12 months. Fifty-six percent said there will be no change in their buying plans. Fifteen percent said they would buy less over the next year.
| Source: Purchasing survey | |
| On-time delivery | 98% |
| Lowest price | 87% |
| Broader, deeper inventories | 75% |
| Tech support | 71% |
| Breadth of line | 68% |
| Sales reps | 59% |
| Leading edge technology | 58% |
| One-stop shopping | 58% |
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