Is Design The New Gold Mine For Distributors?

The service that electronic component distributors have provided over the years has changed very significantly. Nowadays, distributors help customers in meeting many of the requirements for developing, designing and manufacturing products as well. Looking at the critical need customers have for design in electronics, distributors have started setting up their own in-house design teams.

- Baishakhi Dutta

As electronics manufacturing has become more demand-ing, the electronic components distributing ecosystem can no longer offer good services with the old-fashioned just-in-time inventory management. Electronic product manufacturers often face challenges in balancing lead times with manufacturing requirements and inventory shortage. This is where the distributors have stepped in with their expertise and taken on a much greater role within the manufacturing supply chain itself.

Of late, the complexity of electronic circuits and the need for unique product capabilities have increased. This has led to electronic product developers requiring expert support for design as well. In response to this need, some distributors have started introducing their own design packages for computer aided design (CAD) or electronic design automation (EDA), often integrated with their inventory. These distributors are taking on a much bigger role in the design cycle. They are advising product developers not only about the products, but also providing in-depth support at the beginning of the design cycle. Everything – right from the technologies that might be appropriate for their products, to certification, designing for the lowest BOM cost, and many other factors—is now being addressed by distributors.

There are many companies that are developing electronic products, but their fields of expertise lie in other areas. By incorporating electronics into their products they can develop innovative designs, but they may not have the in-depth knowledge about some of the basics. Even those companies whose traditional area of expertise is within the electronics domain can also greatly benefit from the design engineering services offered by these distributors of electronic components.

What is triggering the shift?