July 2024 – Electronic Component Distribution

Electronic component distribution is continuously changing and evolving, and with the added pressure of electric vehicles on the automotive industry impacting lead times of electronic components, the industry is having to forward-plan and be more reactive even more than ever before.

Electronic Component Distribution

Issues with Component Manufacture

The added demand of electronic components from the automotive industry is putting immense strain on semiconductor production lines which is pushing lead times out.

In 2019 GD Rectifiers saw lead times be pushed out by up to 32 weeks, which saw some purchasing managers change their buying behaviour and adjust to forecasting months in advance and in years after covid we saw lead times exceed 52 weeks.

The pushed out lead times affected all electronic component buyers, with some purchasers having to cancel orders because lead times with certain manufacturers were delaying project launches and impacting the supply chain. In these circumstances purchasers would usually have to pay a cancellation fee, which they would prefer to do rather than wait for the components to come in, which demonstrates the urgency for them to receive the goods as quickly as possible.

It also highlights how purchasers’ priorities or resources can change, within that timeframe they might liaise with an experienced distributor and realise that they can use another device with a shorter lead time in lieu of the original one which is why an order cancellation is necessary.

A Distributor’s Role Today

• A larger selection of components – distributors need to offer a vast variety of components and related devices in order to keep customers shopping under one roof
• A reliable source – purchasers need distributors to be reliable, even when they’ve placed an order elsewhere and have been let down, distributors are often the most likely source to help out
• Components are becoming increasingly powerful and so are distributors – advances in technology means that the possibilities and applications for components are ever-increasing, distributors are also paramount to this because they’re at the forefront of technology trends and consumer demand
• Distributor knowledge – distributors have been seen and used as knowledge centres for several years this will be heightened further more in the coming years when more new technologies evolve, the role of a distributor has never been more imperative and it is one that’s continuously progressing

Expectations of Distributors

With more component opportunities in the future comes more competition and a greater need to meet customers’ expectations.

• High quality products – it is crucial for distributors to offer high quality products that are reliable and fit for purpose, otherwise purchasers will have a hard job sourcing replacements with a shorter timeframe
• Competitive pricing – today, pricing is one of the most powerful deciding factors of a purchaser, with pressure on budgets arising, they need to make sure they have sourced components for the most competitive price without compromising on service and delivery.
• Fast delivery – another vital factor to consider before placing an order is the delivery timeframe, with lead times being pushed out, purchasers need to be confident that the estimated delivery window given will be suitable for their project. Occasionally factories are late on their deliveries and this is completely out of the distributors control, however it is important to work with a distributor that will keep you updated on delivery every step of the way. Working with the same distributor will also encourage them to look at other avenues to see if they pull components in from elsewhere faster.
• Trust – many purchasers spend hours a week discussing their requirements and options with distributors, it is important to trust your distributor and be confident that they will be doing everything to help facilitate your project. It is best to be open with each other on expectations, production and delivery as they are ultimately working as an extension to your company.

What can distributors do to improve their services?

Flexibility on delivery

Purchasers would like the flexibility to be able to bring forward their delivery when workloads increase and they need products quickly.

Communication

In general, customers today would like to have more communication with distributors, either by email or phone along with updates on delivery dates.

Innovative products

Purchasers would like to see distributors increase their product offering so that they could purchase more items from fewer regular distributors. They would hope that this would also work in their favour, by securing competitive pricing for purchasing multiple products from the same distributor.

In today’s market, engineers, purchasers and procurement specialists want to work with distributors they can rely on and feel like they are part of their team. However, it’s often about getting the basics right, whilst adapting to the constant challenges their customers face and offering cost effective solutions to help them quickly get over the production hurdles often thrown at them.

At GD Rectifiers we understand that the key buying factors and project priorities for engineers can change quickly, which is why we’re proud to offer flexible products and services to our customers. We suggest organising scheduled orders for customers that want to order a large amount of products but want to stagger the drops over a 12month period, we liaise with the factory to ensure we receive the product at our warehouse ready in time for the customer to receive on the scheduled dates.

We also offer a call-off service for customers that want to order a large amount of devices in one go to get the best possible pricing, but do not have the warehouse space to stock all of the products at their site. GD Rectifiers offers to keep the product on their shelves over an agreed period of time and will send products out when a call-off order is requested. This flexibility in placing orders and managing stock fulfilment is one of the reasons why customers keep shopping with GD Rectifiers.

With our technical and commercial expertise acquired over the past 55 years, GD Rectifiers is able to offer the highest quality service whilst giving the most competitive engineered power component pricing and solution. Our sales force is based in our head office in Burgess Hill, West Sussex. We also have a regional sales team that travel across the UK to discuss client requirements. Our seasoned team have over 100 years combined experience in design, manufacture and sales of power electronic components.

GD Rectifiers is a global manufacturer of high voltage rectifiers, high voltage diodes, selenium rectifiers, selenium suppressors, power assemblies and heatsinks.

At GD Rectifiers, we are specialists in obsolete semiconductor components and work hard to find customers a modern day alternative to obsolete components. We manufacture a number of flat base conversion kits used to replace obsolete flat based diodes and thyristors, historically used in rotating applications.

Discover GD Rectifiers’ complete range of products here.

For further information on GD Rectifiers’ product range, please call the team on: 01444 243 452 or email: enquiries@gdrectifiers.co.uk.