Mark Larson, president and COO of Digi-Key, elaborates on the company's recent decision to stop production of its print catalogue.
How has the distribution market changed so that a move to an online only business is attractive in 2011?
Engineers and professional purchasers have voted by their actions. Nearly 90% of Digi-Key orders are received on the Internet. The remaining 10% received by telephone, FAX, EDI, and post are typically "built" on the Internet and merely communicated by another media. Of course Digi-Key will continue to process orders no matter how received - via Internet, telephone, Fax, EDI, or post - whatever method the customer chooses.
But www.digikey.co.uk will be the customer's source for information on the millions of parts available and give the customer instant access to the industry's broadest range of electronic components available for off-the-shelf delivery.
When the fact that our customers no longer rely on the catalogue was coupled with Digi-Key's desire to preserve the earth's resources, our decision to discontinue publishing became obvious. We are a citizen of the world and it is imperative that we do our part; that we act responsibly.
What difference will your customers see?
The difference to the Digi-Key customer will be universally positive. The cost of millions of pounds required to publish and post our catalogue will be redirected to further strengthen the website and more than 80 other Digi-Key websites around the world that are already considered Best of Class. Furthermore, the customer will no longer be subjected to a catalogue they don't use, and thousands, maybe hundreds-of-thousands, of trees will be saved. It's a true win-win situation.
And for those customers that prefer the traditional catalogue format, our website gives them the ability to download single pages, sections of the catalogue, or the entire catalogue in PDF-format.
On the other hand, if a customer prefers browsing in a catalogue format but has no desire for the printed page, this can be done using Digi-Key's On-Line Interactive catalogue. This provides the blend of traditional catalogue sourcing with enhanced access to real-time component information.
Do you see opportunities to provide new services via the Internet?
Definitely. Digi-Key is recognized for the broad product coverage of its Product Training Modules (PTMs). We will now accelerate the introduction of even more PTMs. Digi-Key has also published a series of TechZone Magazines focusing on technologies including Lighting, Microcontrollers, Wireless, Power, Sensors, and more. These will now be offered On-Line in a dynamic format that continually updates and expands the content of these and other key technologies. The content will always be leading edge and relevant to the engineer. And there will be more changes.
Our goal is to make the Digi-Key site the ultimate source for component content as well as the ultimate source for electronic components.
Are all global markets moving toward Internet buying of components at the same pace?
Although there might be some subtle differences from market-to-market, the fact is that the Internet is the medium of choice for both the engineer and the professional purchaser worldwide.
Digi-Key gives customers the ability to get real-time pricing and availability information, lead-time information when required, access to new product information often the day the product is released, notice as to obsolescence, and more online. The print catalogue simply cannot compete with real-time information.
What are the benefits to Digi-Key of taking the move to be web only ahead of its main rivals?
I would like to believe that Digi-Key's willingness to take the lead on this issue clearly demonstrates our commitment to "Green."
While others talk about being green, Digi-Key's action to discontinue our catalogue speaks louder than the words of others. We believe that Digi-Key is clearly reinventing distribution. This is one of a series of decisions that have made Digi-Key unique; the industry leader in terms of implementing technology for the maximum benefit of our customers.