Component distribution must deliver more, writes Jamie Furness, general manager at TTI UK, Ireland and South Africa
The days when just carrying a good product line was a guarantee of winning business are gone. Today, both customers and suppliers require a lot more from their distribution partners.
This is especially true in the UK market, where design houses, specialist sectors like mil/aero/defence and a wealth of CEMs all require different services – which we may term ‘value add’.
The lifeblood of design houses is new products. Traditionally, distribution has been a follower rather than a leader when it comes to introducing new components, relying on manufacturers to create market demand before putting in inventory.
TTI has always taken a different approach, investing in a stock profile of new parts so its customers can have access to components which will allow them to differentiate their end designs. The company is also unique among broadline distributors in having ‘catalogue’ distributor, Mouser, as a sister company; this further expedites new product introduction by getting sample stock onto engineers’ desks and drawing boards as soon as new parts are launched by manufacturers.
Specialist markets need a focused approach rather than being forced down the ‘one-size-fits-all-route’. We have chosen to support sectors such as Mil/Aero, security, lighting, energy, power management, sensing and non-automotive transportation, and have invested in FSEs who combine technical capability with the market knowledge required to do business in these areas.
We are also prepared to put in significant capital expenditure: for example, this year we opened a 38999- QPL approved connector assembly facility in Munich to support our mil aero and hi-rel customers.
CEMs, of course, require a different set of skills. In this market sector, reducing the total cost of acquisition and on-time delivery are the major concerns. As a specialist passive, connector, relay & switch and discrete distributor, the products we handle account for only around 8% of the value of the BOM, but comprise around 70-80% of the components on the PCB, or about 60-70% of the purchasing – as opposed to item – costs.
Therefore, logistics are central to how we operate, with each program essentially 100% tailored around the customer - from trigger points to delivery methods to different EDI processes. Our approach of Supply Chain Excellence is based on collaborative analysis and continuous improvement. We offer on-site process analysis as well as intelligent controlling tools and we are always introducing new ways of supporting supply chain management.
One thing that every customer needs is information. 2011 saw the terrible earthquake and tsunami in Japan and more recently the floods in Thailand. We earnestly and sincerely hope that 2012 is free of such tragic events, but we guarantee that whatever happens around the globe, we will use our web tools to update customers clearly and quickly on how they maybe affected so they can plan accordingly.
www.ttiinc.com