EMS requirements on distribution can be challenging
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Gerry Fay | As seen in Purchasing.com -- Many electronics distributors are concerned about consolidation in the EMS industry because they could lose customers and revenue.
However, some see consolidation in the EMS industry as healthy in the long run for distributors and for the entire electronics supply chain.
“Consolidation is necessary for the EMS industry,” says Gerry Fay, senior vice president, global and strategic accounts Avnet Electronics Marketing, based in Phoenix. “The EMS industry is struggling because there is a lot of capacity in the channel, so it is difficult for EMS providers to charge a premium for their capacity. Hence, they have low margins. The more the EMS industry can consolidate and reduce capacity, the better its operating model will be,” he says.
A healthy, profitable EMS industry would be good for distributors, OEMs and component manufacturers.
Some distributors say that EMS is a growing portion of their business because of the growth of outsourcing. While distributors welcome EMS business, they also note requirements that EMS providers have on distributors are different than OEM requirements and sometimes are challenging.
Full Story>>
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Q & A: Expansion Resources
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| Tim Barber |
As seen in Product Design and Development -- Tim Barber, Senior Vice President of Design Chain Business Development for Avnet Electronics Marketing, offers some insight on how distribution can help expand a global presence.
Tim Barber, Senior Vice President of Design Chain Business Development, Avnet Electronics Marketing
Q: From your perspective, what steps should a designer take when bringing a new product to a new geographic marketplace? How might this change for a mature or existing design?
A: As companies look to these emerging markets, they need to ensure their focus is on an end-to-end solution in their new product launch so they can hit their ultimate target launch dates – ensuring their place as a market leader in creating real competitive advantages.
Some customers choose to focus on a small part of the design that will differentiate their products from other solutions by utilizing full or partial reference designs that can aid in time-to-market challenges.
In concert, there is a significant focus on supply chain solutions that will meet product needs, regardless of manufacturing location.
Q: How significant a role do you feel RoHS and similar initiatives have played as American companies look to grow their presence in Europe and Asia?
A: RoHS has been in place for a few years now and is not the daunting issue it once was for companies. In fact, many suppliers have moved away from offering non-RoHS compliant products, making component selection much easier.
From the distributor perspective, we have aligned our efforts with the suppliers for data flow on related products -- making these issues as seamless as possible for our customers.
Full Story >>
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