Evaluating Independent Distributors
Written by: Cesar Romo
Independent distribution plays a vital role in any supply chain, even more so in shortage and excess markets. As I’m seeing many companies become more willing to utilize independent distributors, it is essential to understand how to evaluate a connected distributor to ensure it fits with your company’s goals, needs, and overall objectives.
Over the last two years, independent distributors have become an emergency response crew for companies. By helping to stop the lack of materials from impacting lines, open market sources have been able to help relieve companies from the strains of rising fixed costs, high inventory levels, paused or delayed production lines, and bottlenecks throughout the supply chain. However, for many years this was not the case as the open market has traditionally been perceived as a threat to manufacturers and franchised distributors. Now, current market conditions have obliged the customers, line representatives, and manufacturers to consider independent distribution for many of their needs.
Because the open market is such a big player in the supply chain today, knowing how to properly utilize such sources is crucial. My top recommendation is to select two or three top-level open market options. Having more than this will impact the cost of your supply chain and the availability of product. For example, if ten customers put requests out into the market for the product from the same ten suppliers, those suppliers will all see that the demand is going up for that product and drive up the price. Once you have chosen two or three high-quality open market distributors, narrow down to one source. Selecting your independent distributor requires an understanding of criterion to ensure you find the highest quality distributor. For example, see the list below.
- Market Intelligence
- Quality Management
- Global Distribution Network
- High Industry Standards
- Customized Programs
- End-to-End Lifecycle Management
- Obsolescence and Lifecycle Extension Support
Having a list of criteria including these items eliminates unnecessary noise in your search for an independent distributor, preventing you from receiving higher prices than necessary or offerings with reduced availability. Along with this, a list of criteria that includes these seven items embodies a global company that can provide you with all your necessary solutions in one stop.
With over forty years of experience, Converge is designed to cover needs across the electronics market. We not only interact with EMS, but also manufacturers, line representatives, distributors, and even brokers that we have evaluated and qualified. In considering the list above, Converge is uniquely positioned to deliver high standards on every aspect necessary with tailor-made solutions for you, support for any disruption, and a commitment to exceeding expectations with aggressive pricing, quick lead time, and high standards in quality and service.
Contact us to learn more about our unique connected distribution model.
Read More
Independent Distributor vs. Broker
Whitepaper: Navigating the Open Market — Choosing a Reliable Independent Distributor
About the Author
Cesar is an experienced Sales Manager with twenty-one years of demonstrated history of building strategy, defining process, and developing teams. In his current role as Business Development
Manager and Tier 1 EMS Global Account Manager, he is responsible for building, maintaining, and growing a network of internal stakeholders & support teams, customers, and many more. So much experience in the electronics industry, Cesar is passionate about coaching, integrity, and leadership development to pass on his knowledge to his younger colleagues.