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8 Things You Need To Know Before Doing Any Business With Any Distributor
Posted by: | CommentsIn the perfect world, you would always be able to buy direct from manufacturers. But in the real world, there are times you need to do business with distributors, rep-firms, and independents. Before you put your trust – and your reputation – into the hands of any distributor, take the time to ask yourself these eight questions basic questions.
1. Is the company ISO 9001:2000 and AS9120 certified. A lot of brokers will boast that they are ISO certified but, in today’s market, basic ISO is not stringent enough to screen for counterfeit parts. And, before buying anything from the independent market, it’s important to make sure that your supplier’s quality protocol is Military/Aerospace grade, so you know you’re getting authentic, perfect material every time, without exception.
2. Does the supplier have a solid facility with a ‘bricks and mortar’ warehouse, an entire department devoted to shipping and receiving, and the staff to screen for quality assurance. Many “brokers” are just one-man shows who work out of their garage and ship components from the nearest FedEx at Kinko’s shop. The risks of doing business with an outfit like that are obvious. A quick check of the address on Google Earth will show you whether the location is an actual warehouse or just a suburban home.
3. Do they field an experienced team? Again, that means more than one person wearing all the hats. But it also means that you’re working with experienced veterans who know what they have, where to get what you need, and how to get it fast. Any competent distributor should have multiple purchasing agents screening through the OEM and CM excess inventories of the world. That way, when faced with a big shortage, you’ll know your supplier has many minds leveraging their collective knowledge and experience to meet your needs.
4. Does the broker have a bulletproof quality screening process? You can screen the broker, but it’s the broker’s job to screen their suppliers and all the components they get on your behalf. They need to make sure their supply stream is completely traceable and without compromise from unqualified sources, so yours will be too. Choose a distributor that is ahead of the curve in Quality Control. The counterfeit market is very savvy these days, and many ISO certified distys do not have the testing in place to discern what is authentic and what is not.
5. How many accounts does your sales representative handle? You don’t want to deal with someone who is spread so thin that they can’t give you the attention you deserve. You want someone who is always available and able to help in any situation. In fact a good sales rep at your distributor of choice– should be almost like having a virtual assistant. You want someone with experience, strong work ethic and that cares about keeping you on their client list for many years.
6. What kind of engineering support does the company offer? Procurement effort can be confusing with upscreening, exact crosses, drop in replacements, programming, erasing, and testing. A distributor with a good engineering team knows what will fit your needs and what will cause component system failure and weed them out so you won’t waste your time and your company’s resources sorting through options that are not viable.
7. Get references. Any company that meets all of the above criteria and will be a true extension of your organization should be able to provide multiple references from Fortune 500 companies proving their track record.
8. Make sure your distributor has a web based forum where you can submit RFQ’s and get a confirmed quote same day, access unlimited data sheets, and track your shipments. Having to call into a phone system every time you need to expedite a request can be tedious and time consuming. Make sure your distributor can handle all of your requests electronically in addition to giving you the hands on service that you expect. Click here to submit your RFQ.
Big Changes coming to EMS Industry
Posted by: | CommentsAs the market rebounds from this historic economic downturn, expect to see some major changes in the EMS industry as companies and their shareholders try to recoup serious losses and position themselves for the future.
Look for smaller companies that focus on narrow niche specialties like medical, industrial or aerospace. By specializing, they can concentrate all their time and resources more efficiently, keeping margins down and profits up. Larger EMS providers, which dominated the market in the past, will be left to fight over the less specialized consumer, computer and communications business. Those areas make up a large core of the market, but also have lower margins.
Some larger OEMs may turn to insourcing more of their manufacturing, taking a page out of playbooks that have been very successful for both Nokia and Intel. Keeping more manufacturing in-house puts the OEM in control and reduces the costs and headaches that can come from dealing with an EMS provider.
Finally, expect the explosive growth of Original Design Manufacturers to slow as OEMs respond to concerns over design innovation and product differentiation – the driving factor in many industries, especially consumer electronics. Outsourcing the design of specific components helped cut costs. Outsourcing the design of entire products has made some OEM’s fear they are losing their competitive edge. Now more of them are talking about recapturing control of conceptualization and master design from their ODMs.
Experts predict the next five to ten years will bring big changes to the EMS industry – specialization, insourcing, and a return to in-house product design. Will you be ready?
Smartphones Getting Pico-Projectors
Posted by: | CommentsTiny pico-projectors set for huge growth
Smartphones are getting smarter with new embedded projectors capable of showing up to 50-inch bright, diagonal images on any wall or surface. The first one – the Show Phone by Samsung – was unveiled earlier at the Consumer Electronics Show in January and is currently available only in Korea. But the tiny pico-projectors are expected to take off quickly in the international corporate market allowing business travelers to leave bulky laptops and full-size projection systems behind and make presentations directly from their mobile phone or PDA. And you can be sure consumers won’t be far behind, attracted by the ability to share their personal slide shows or YouTube favorites and even movies anywhere there’s a flat surface and a cell phone.
In fact, the sale and shipment of embedded pico projectors is expected to leap from less than 50,000 units this year to more than 3 million units in 2013, says market research firm iSupply. That’s a staggering 60-fold increase in just four years.
There are still some challenges that manufacturers need to work out before embedded pico-projectors can realize their full potential – like power consumption and size. But their ability to overcome screen-size limitations and project a large image from a small device makes embedded pico projectors a perfect fit for the smaller-is-better smartphone market. Expect projector-capable smartphones to start popping up everywhere soon, and get ready for the market to take off.
