November 21, 2013
Editor's Note 
BarbaraJorgensenNow that the "shift happens" puns are all done, what's the take-away from the annual Electronics Components Industry Association's (ECIA) Executive Conference? There were several. The message that the industry has to continue to look forward was loud and clear. But equally compelling was the suggestion that distributors and suppliers still have a few past issues to work through: namely, design-win compensation and ship-from-stock-and-debit. These two practices, which were put in place decades ago, no longer work for everybody in today's supply chain.  EPS takes a deeper look at these issues in Distribution: Some Policies No Longer Work .
Another unsettling issue is the continually eroding profit margins suppliers and distributors are wrestling with. The electronics industry is in the midst of a long period of adequate or over-supply and price increases aren't viable. Additionally in China, the industry' fastest-growing market, prices and profit margins are lower than in the rest of the world. Sometimes, customer engagements aren't profitable. Arrow Electronics recently disengaged with a customer for profit-related reasons, and you can read more in  Arrow Shows When to Drop a Customer
One of the way distributors are reducing costs to maintain margins is by spreading more of their services over the Internet. The free tools that the channel offers customers usually focus on design or purchasing. Arrow's latest offering to the market covers both, as we explain in  Arrow Tool Links Purchasing and Engineering.
The electronics industry has been struggling with counterfeits since its inception and distribution is particularly vulnerable to bogus parts that may slip in to the channel though product returns. A solution that has been supported by a U.S. Government procurement arm, the Defense Logistics Agency, has polarized the industry. The solution involves marking components with DNA derived from plants. Marking the components enables customers to confirm whether the parts came from an OEM factory; an authorized distributor or another source. Aspects of the practice have been called into question, which EPS examines in  DNA Marking Roils Anti-Counterfeit Camp.
Also this month, Distribution Dispatch highlights EPS November Hot Products. We'd like to hear from you about the stories we've run and topics that you'd be interested in. One of our charters at EPS is to help buyers do their job better. Let me know how I can help at



Barbara Jorgensen  
Featured Articles
Forget Re-Shoring, China is still it
It's easy to find evidence to convince anyone China will in future play a diminished role in the electronics manufacturing market. Link

Capturing B2B Potentials of RFID
With RFID technology coming on line for many different business sectors, I could not help but notice the impact for B2B applications with respect to the management of critical data to ensure they can survive the untimely demise of a product in the field. Link

Flextronics Places Huge Bet on Google
Google Inc. is fast becoming the hottest must-have partner for many supply chain service providers in the electronics manufacturing industry. With the Web search engine provider expanding its roster of electronics hardware, sales and profit opportunities running into billions of dollars have opened up at the company for semiconductor makers and other component suppliers, distributors, contract manufacturers, logistics providers and independent design firms. Link
Consumer & Mobility Alter the Electronics Landscape, Part 1

Electronics Here, There, Everywhere: Implications for Industry Design Chain & Supply Chain Landscape. That was the initial headline for this article but the lengthy wording worked against this choice and a shorter title was substituted. Link  
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Distributors Weigh Tough Talk with Customers
Now that all the "shift happens" puns are done, what is the take-away from the ECIA Executive Conference that was held in Chicago a few weeks ago? Link
Transitional EOL Cuts Last-Time-Buy Pains
Semiconductor End-of-Life (EOL) announcements can cause procurement stress and lines-down situations. When an EOL notification is issued, the original equipment manufacturer (OEM) may find themselves in the position of having to make a last-time-buy (LTB) purchase that will cover the duration of its manufacturing and/or in-field maintenance. Link
Digi-Key in China? Yes, Soon, Too

Digi-Key Corp. is expanding operations globally and plans in the near future to establish its first office in China in furtherance of an internationalization program that will see the electronics components distributor putting "boots on the ground" in key European, Middle East and Asian locations, according to company executives. Link

Schuck to Head Arrow Global Components Group
Arrow Electronics Inc. said Eric Schuck will take over as president of its global components business effective January 1, 2014. Schuck will replace Peter Kong who is scheduled to retire from the company on March 31, next year, according to a statement released by the company. Link
News Wire
America II Evolves Blended Distribution


WPG to Distribute Micron ICs in the Americas


 Heilind Stocking Molex's Pico-Lock


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