The component distribution market is emerging from the dark days of the 2008/2009 downturn with important lessons learnt.
Tighter control of inventory in the supply chain is a must and do not underestimate the importance of the internet in the recovery.
Latest figures coming from global broadliners RS and Arrow indicate that market conditions are improving significantly.
The downturn has taken its toll of distribution sales for the last year, but as the year ended there were signs of the market turning.
Sales at Arrow were up in the last three months of the year.
Then RS Components saw a "sharp improvement" in sales in the month since Christmas.
The online and catalogue distributor said sales In January were up 10% on the same month last year.
The UK market is still weaker than other parts of the world, but still growth is growth.
Most striking was the 30% growth in all web-based sales in January.
In the US online sales grew by a staggering 90%.
The online business at RS now stands at 45% of group sales and racing quickly toward the tipping point when online overtakes print/telephone sales.
Handled correctly it seems that the growth in web-based purchasing could accelerate the recovery of the distribution sector.
The cost-effectiveness, reach and flexibility of the web to access designers will become important to all distributors in the post-recession world.
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