Mark Burr-Lonnon, VP of Mouser International, talks to Electronics Weekly about how the Internet is changing the distribution business, the proportion of business going online and the future for print catalogues...
1. How would you characterise the importance of the Internet to your distribution business?
With 74% of all new customers now coming via the web we have over 300 new customers every day proving that our site is not a vanity site and demonstrating clearly that the Internet is the most critical part of our distribution business.
In addition to the actual number of customers, the number of lines shipped via web orders is over 60% of our volume and continues to increase. www.Mouser.com gives customers worldwide immediate access to millions of products, including the newest products and technologies. Engineers can research products and within a few clicks of the mouse, have the product ordered and on their doorstep the next day. As Mouser continues its global expansion, the web is a key driver and allows us to play in markets previously the stronghold of local distributors. That said, we are also increasing our local presence in key markets to "Localise as we Globalise"
2. Is the Internet changing the distribution business, if so in what ways?
Definitely. The design engineer is challenged with shorter time to market deadlines. The Internet allows them to research products faster, find the critical information needed for their project, and buy the components simply, online.
Having the ability to conduct all their research and purchasing in one location gives the design engineer a huge time to market advantage. The recent market downturn has seen all parts of the business tighten on resources so engineers and buyers have increasingly found the web to be a more cost effective way to conduct increasing amounts of their workload
3. What proportion of your business is online and is it still growing?
Over 60% of lines ordered are placed on the Internet. That number continues to grow as Mouser adds online customer services, new products and technologies, and key new suppliers. In Europe, Internet business accounts for more than 50% of our sales dollars and is growing daily
4. Can you envisage a time when the print catalogue is completely superseded by online activities?
The catalogue and Internet complement each other. There will still be a need for the print catalogue. A design engineer uses the catalogue to source and compare products and then uses the Internet for more in-depth research and purchasing. Proving that design engineers still want the printed catalogue, we receive requests for the printed catalogue daily, with our website the number one source for printed catalogue requests!
Mouser's focus is on delivering the "Newest parts for the Newest Designs" and as such the frequency of catalogues (Quarterly in USA and bi-annually In Europe and Asia) allows us to ensure that the engineer receives in print the latest parts in the shortest timeframe.This is supported by our franchised suppliers who wish to reach the engineering population by all methods as fast as possible. By leading the global catalogue market in frequency we are truly the engineers' catalogue choice for the latest technology
5. Are there any new services which the Internet is making possible for the first time for distributors like you?
The ability for global reach is paramount and the ease of local language and currency offerings makes the Internet a key driver. Tools such as our Bill of Materials manager enable the engineer to truly build BOMs and buy them easily, without the need to contact our offices, ensuring quicker turn around and full control of the BOM with no hidden "preferences" from a selling organisation. In the world of NPI (new product introduction) we are now able to get new products out quicker (daily) - and with our local sites we operate regionally to meet the local demands for parts that are more critical in different geographies.
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