22.02.2024
February 2024 – Electronic Component Distributors can excel despite expected downturn
GD Rectifiers discusses the global challenges that have impacted electronic component distributors over the last few years and how they are combating the expected downturn
Numerous global challenges have impacted distribution over the last few years, including Covid-19, the war on Ukraine, inflation, the energy crisis and on-going supply chain issues however distributors have still seen strong order books. The market has seen that buying activity from customers is beginning to enter a downturn, with many customers having hedged their bets and over-ordered products hoping to beat the long lead times and secure a resilient supply chain from uncertainty caused by various global challenges.
Electronic Component Distributors
The power electronic component industry is renowned for having peaks and troughs when the market experiences a sudden rush in demand for semiconductors because of the EV market, or delays because of the raw material cost increases or an abundance of unwanted counterfeit devices flooding the market requiring replacement parts urgently.
Despite the numerous global challenges, the industry has faced in recent years, GD Rectifiers is well positioned to respond and cater to these market changes and prides itself on 4 main values.
- High-volume order books
With customer placing orders further in advance than usual, we start to see order books plateau out and we start to see the supply/demand balance out. Often over-ordering can lead to an unusually busy few months followed by a significant decline which is often a prime example of what happens when over-ordering is used to combat poor availability of components. This is a trend we see in the power electronics industry every few years, when global challenges impact component design, production, availability and pricing.
Shortly after Covid-19 and as the raw materials market started impacted availability, power electronic component manufacturers informed their distribution network that components were increasing to a 52-week lead time and that excessive ordering would impact component availability.
- Expert customer service team
Alongside our reliable and high-quality products, our customer service team are the most important element of our business. Our technical and sales teams provide expert technical support to customers whenever they need it. We work as an extension to their business, making sure we secure the best products and the best price with the quickest lead time. We know its paramount to have direct access to a technical team you can trust. Our team are ready to help and willing to take on any design challenge you have to offer us, we offer technical support and advice on designing in new products, can support with component obsolescence and offer alternative products or work with our manufactures to design-in new products for your application.
- Plan for the unknown
At GD Rectifiers, we understand that our market is volatile, we work with customers to support their infrastructure, new designs, component requirements and delivery expectations. We also work hard to make sure we have sufficient stock on our shelves to cater to ad-hoc component requests.
- Product range and relevant alternatives
GD Rectifiers devised a product sourcing strategy to help maintain supply to our existing customers whilst offering a large quality range and depth of products to be able to appeal to new customers looking for spares, repair and those working on new projects. As the market starts to settle, we’ll see more of an emphasis on distributors being able to source components with short lead times as opposed to looking for stock, resembling pre-pandemic trading conditions.
- Buying made easy
We know that power electronic components and custom builds are not a one size fits all product, we also appreciate that some customers require a technical discussion before buying a component to truly understand the technical capabilities to determine whether it is suitable for their application. We take a different approach to buying power electronic components, you can’t buy online but you can access our sales team and engineers who have been with us since the beginning, we know your products inside out. We partner with you to offer cost-saving, fast time-to-market and flexible purchasing solutions. We also understand the importance of being realistic about the inventory you need. Our aim is to help and service customers the best way we can.
GD Rectifiers helps make the procurement process easier by offering a range of flexible purchasing solutions, from call-off and scheduled orders to design-in registrations and fast, cost-effective prototypes. Whether you’re looking for a single part for a spares repairs job, or you’re designing in a build for a new application, we can help service your needs.
Distributor capability is key, partner with a distributor that can design, develop, manufacture and test products in-house. A supplier with these skills can provide significant advantages in delivering on-time and within budget. Flexibility is another key consideration, and ensuring the distributor can work with the OCM to modify a product or design a bespoke part to maximise initial development investment.
For further information on how GD Rectifiers could help you with your next project, please contact us on 01444 243 452 or email enquiries@gdrectifiers.co.uk.
