As we discussed in our first article in this series, groups and departments within your organization will need to find parts. Instances include when products jump from prototype to production or when contract manufacturers are handed the responsibility of purchasing parts. There will be factors to consider such as cost, lead-time and part needs.
We first looked at the pros and cons of purchasing directly from a manufacturer. In this article, we will look at the pros and cons of purchasing electronic components from an authorized distributor.
First, you’ll want to look for established distributors in the space. In many cases, you may find that these sources have all of the parts you need at the times that you need them. Purchasing from an authorize distributor will reduce your up-front costs, allow for part variety, and quick turnaround times.
Distributors may still require a certain spend, but its expectations are typically lower than manufacturers’. When it comes to counterfeiting, distributors will purchase directly from the manufacturer, so they tend to offer full-product traceability.
However, if you’re in the market for more customized and specialized components, you may want to expand your search.
Purchasing from an authorized distributor is a common purchasing route for procurement professionals. Distributors and manufacturers work closely together to help get products to market. Many of these arrangements between suppliers and distributors involve details such as pricing, stock holding, and territories. It can even be argued that the same benefits that come along with buying directly from the manufacturer exist when purchasing through an authorized distributor.