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June 2023 – Distributors offer added value

Discover the 6 ways distributors provide added value by reducing costs for buyers
Distributors offer added value, GD Rectifiers

Today a distributor’s design, purchasing and value-added services help OEMs and EMS providers to cut costs, get products to market quicker and manage supply chain risks.

6 Ways Distributors offer added value

1. A reliable, easy way to buy

Without distributors, customers with smaller annual requirements wouldn’t be able to buy the components they need. They are often unable to establish a direct account with the manufacturer, usually because they do not spend enough each. It isn’t feasible for manufacturers to service these accounts direct and so they look for support from their distributors to service these customers.

 

2. Flexible purchasing options

Often buying from distributors presents smaller or no MOQs (minimum order quantities) which is ideal for customers that require smaller drops. Distributors also offer flexible purchasing solutions such as scheduled and call-off orders, ideal for those customers that can forecast their requirements, would like to minimise inventory warehouse storage and secure the best possible pricing, as far ahead as possible, protecting themselves from potential price increases.

 

3. Long term agreements

Distributors work with customers to provide long term stock agreements, this could involve a call-off or scheduled order based on a material order, or a scheduled delivery drop based on monthly component usage and annual forecasts. Distributors work with you to develop a flexible solution to sourcing components.

 

4. Adding value and reducing cost

Distributors add value to both customers and manufacturers.

For customers, distributors provide extensive knowledge of various products, services and manufacturers, providing greater insight in to the latest technologies and market analysis. Although distributors are the middlemen, they are best placed to keep customers informed on product releases, EOL and production and delivery status updates. Distributors will assess every detail of the customer journey and keep the customer updated every step of the way whereas sometimes manufacturers will focus on other areas and communications.

The distribution channel also plays a part for manufacturers by adding value to the end customer, helping take away some of the cost of serving a customer and they also provide excellent growth opportunities. It is often the case that many manufacturers would not be able to service accounts, territories or industries without the support of localised distributors. Distributors service the wide mass market base and help create the demand for that, which has always proven successful.

 

5. Helping create demand

Demand creation takes place in different forms, it could be the discovery of a new technology and partnership opportunity, or it could be the first design-in product for that manufacturer, having endured lots of development and testing work to get to this point. Distributors not only help manufacturers grow their customer base but they also help the component manufacturers gain more business with existing customers.

 

6. Supporting time to market

Distributors share their knowledge, experience and understanding of the market, they share their ideas and are determined to offer a solution best placed to support customers. This could involve designing in a new product, offering alternative products from the same manufacturer or similar package offering, holding stock on their shelves to satisfy demand or to pull forward orders when possible. Distributors understand how crucial time to market is and they will do everything in their power to minimise supply chain risks. They will leverage distributor relationships and offer a high level of service whilst remaining impartial about the parts they recommend.

In fact, one of the major benefits of using a distributor is that you will receive a quote for the exact component you require, it will not be over spec’d, over powered or overpriced. Distributors take pride in offering a reliable and appropriate solution.

 

GD Rectifiers is a global manufacturer and distributor of products, services and solutions to commercial and industrial users of power electronic components. Alongside distributing state-of-the-art power electronic components for some of the world’s leading manufacturers, the company also manufactures their own range of heatsinks, power assemblies, selenium rectifiers, regulators and inverters.

For further information on GD Rectifiers, or to discuss your requirements with our team, please call us on 01444 243 452 or email enquiries@gdrectifiers.co.uk.

 

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