Optimized flow of products for the benefit of both suppliers and customers. Purchase order and leadtime-based transactions. World-class product and supply chain expertise. Part number focused relationships. Accurate forecasts generated over larger user base with more sophisticated supply and demand analysis.
Forecasts are volatile and inaccurate.
Companies will outsource their component procurement to an expert firm such as iSuppli and focus their procurement, planning, and data management resources on those items that differentiate their products and services from their competitors. This will enable companies to concentrate more resource and talent on those core competencies that ultimately secure competitive advantage. In addition, suppliers now have a very low cost supply channel with which to service their customers. This channel provides a higher level of service, at a lower cost than the direct or distribution channels, enabling suppliers to better focus their expensive sales and customer service resources on gaining new business rather than servicing existing business. Electronics distributors are required in the marketplace.