As designs become more complex and design cycles stretch, several key electronic-component distributors want a shot at the title of top total solutions provider to speed OEM customers' time-to-market. Distributors want to sell not only the components on their line cards but also design, contract manufacturing and supply chain services, all packaged as a total solution.
Many, however, appear to be lagging behind in engineering services. After heavily emphasizing the development of supply chain and procurement tools over the past year or two, distributors are finally focusing on bolstering their design and engineering services.
Based on announcements over the past month, the three strongest contenders for the title are Arrow, Avnet and Nu Horizons, at least from the perspective of design services. But the odds favor Arrow and Avnet, which already have well-established and well-honed supply chain operations in place.
Being in a leadership position is one criterion for being a total solutions provider. Nu Horizons recently announced a modular development solution for multiple chip designs that puts the company "in a leadership position for engineering solutions and adds another component to Nu Horizons' being a total solutions provider," said CEO Arthur Nadata (see story, page 73.)
Another major piece of the puzzle is forming key supplier partnerships to gain instant access to expertise or services that the distributors don't already possess in-house and that pose too high an investment of dollars and time to ramp up quickly.
For example, Arrow Electronics launched a Web-based engineering service last month called Arrow TestLab that allows engineers to quickly evaluate new technology online to help them "get new design concepts to market faster" without having to purchase a board from a vendor and wait for delivery. Arrow partnered with TechOnLine Inc. to bring the capability 24/7 to the engineer's desktop.
Registered users of Arrow's Web site also have access to the distributor's e-commerce tools, offering such services as order placement and scheduling.
Avnet Design Services' announcement of its Avalon Reference Design System, meanwhile, illustrates the distribution industry's need to partner with key suppliers to provide more complete engineering solutions (see story above).
The total-solutions trend will help designers reduce their time-to-market, shortening design cycles by weeks or possibly months.
Distributors get a bigger return on their investments in terms of margin and profitability.
And suppliers, of course, applaud the trend.
RSS
RSS| 
Digital| 
Mobile
