Product category:
Power Supply ICs and Controllers
News Release from: Advanced Power Components (APC)
Edited by the Electronicstalk Editorial
Team on 19 May 2006
Distributors need more technical
expertise
The head of a newly merged electronics distribution company is calling for "root and branch reform" of the industry's sales model.
The head of a newly merged electronics distribution company is calling for "root and branch reform" of the industry's sales model Mark Robinson, Chief Executive of specialist distributor Advanced Power Components (APC) says manufacturers of semiconductors, and other specialist components, and their customers are both poorly served by the current system of distribution
This article was originally published on Electronicstalk on 4 Feb 2008 at 8.00am (UK)
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Manufacturers are missing out on sales, and customers are getting shoddy advice.
The problem, says Robinson, is most acute among smaller customers who find it impossible to get engineering support.
This is because the manufacturers' own sales force, mainly technically qualified, can only focus on higher value accounts.
Smaller customers have to rely on distributors who are unable to offer the same levels of design-in assistance and logistics management.
This may not be the case for the top tier manufacturers who can generate the level of sales to support a comprehensive sales and marketing structure but it is certainly true for anyone outside of this top tier.
Robinson, whose firm bought out Hero Electronics in a GBP 2 million deal at the start of May, said: "Manufacturers are frustrated by their distribution partners who disappoint when it comes to demand creation".
"And many customers are increasingly annoyed that they're unable to get good advice from technically qualified people".
"I believe it's time for a root and branch reform of the distribution system".
"Most manufacturers should consider a different model which encourages specialist distributors with qualified sales engineers to play the role of representative and distributor".
"This affords a high level of technical expertise within the distributor which can be applied to customers big and small, as directed".
"Combined with seamless, excellent customer service, this model is the next logical step for manufacturers who just don't feel they are generating the market penetration their products deserve".
Robinson has initiated talks with some of the larger manufacturers to try to persuade them of his ideas and of the capabilities of his enlarged group.
Both APC and its takeover partner Hero have traditionally employed only qualified sales engineers, up to PhD level.
Combined, they claim to be the largest specialist distributor in the UK.
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