3 Benefits of an Authorized and Independent Electronic Component Distributor

 August 19th, 2022 |   By Area51 Electronics |   0 Comments
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Let’s be honest, finding an electronic component distributor is hard. There are hundreds operating in the United States alone that promise quality components with fast lead times. Now more than ever before, the need for an electronic component distributor is a necessity.

The global semiconductor shortage has made a lot of us reexamine our past ways of conducting business. More than that, in who we choose to do business with. Lead times stretch on for dozens of weeks with some now over a year. Many show no signs of slowing down.

What can you do to improve your company’s operations in a time of uncertainty? The “old way” of doing things no longer works in most cases. That includes limiting yourself to a certain distributor type and jumping ship when another option arrives.

Who is your best bet? Who can offer you cost-effective solutions without sacrificing productivity or quality as the world adjusts to the new normal?

An authorized and independent distributor can.

1. Authorized Components with an Independent Portfolio

When it comes to choosing a supplier, it’s a decision based on need. What exactly does your business need enough that one option outweighs the other? Are you a manufacturer that often relies on obsolete components due to the long shelf-life of your equipment? Or do you require large deliveries of components straight from the manufacturer to keep production moving?

Maybe, before the pandemic and the fast-moving pace of technology, one type of electronic component distributor fills these needs fine. That is no longer the case.

Technology moves at a rapid pace. The semiconductor industry is experiencing unprecedented growth that kicked off at the end of 2019. A specialized distributor that fits into one category is too limiting in this modern age. An authorized and independent distributor tackles numerous challenges and tasks in one place.

Removing the need for switching between suppliers, an authorized and independent distributor provides solutions that are cost-effective and time-saving. As a distributor with authorized lines, authenticity is guaranteed. These parts come directly from the original component manufacturer (OCM) to the distributor and straight to you, the customer. Tracking is provided and often distributors can offer clients shorter lead times by working with the original equipment manufacturer (OEM).

As a distributor that also operates as an independent, a vast network opens to help manage obsolescence and obtain components that are hard-to-find. Working with an independent distributor can mean a high risk for counterfeits entering the supply chain, but independent distributors are often certified.

What does certification mean for you? It means quality and authenticity are assured.

2. Quality Assurance

The global semiconductor shortage forced many manufacturers to confront one monumental question. Do you shut down production or take a risk buying components from an unreliable source? Neither option presents a worthwhile solution. The first means production decreases output and puts revenue thereby employees’ livelihoods at risk. The second is not a 50-50 chance of a good outcome, in most cases, the odds are not in your favor.

The first outcome is the components supplied are genuine. The second and more likely outcome? The components are counterfeit and don’t work or function properly.

Even worse? These counterfeit components pass the initial inspection and are put into equipment that could be used in anything from a toaster oven to a jet engine. Once there, those components will fail, it’s only a matter of when.

Now you’re out money and a functioning product. That is not a risk anyone should take, let alone must from unfavorable circumstances. The counterfeit component market otherwise known as the gray market is a lucrative business that continues to gain during global shortages like this one. Quality becomes secondary when production stalls are on the line.

It doesn’t have to be.

An authorized and independent distributor has a major benefit in the face of counterfeit risks, quality management systems. These quality management systems are often more far-reaching and stringent than only authorized distributors. Why? Because independent and authorized distributors not only have quality management that abides by their authorized manufacturer regulations but also their clients.

Authorized and independent distributors do business with a variety of clientele, but due to the wide and continued usage of electronic components, many have medical or aerospace and defense clients in their portfolio. The military and medical industries have extremely stringent regulations regarding electronic component usage.

Many of these needs fall under AS6081, which establishes uniform requirements for the detection, avoidance, mitigation, and disposition of fraudulent parts. Electronic component distributors that are certified in AS6081 means that they adhere to requirements to detect counterfeits and meet strict standards in order to sell to military equipment manufacturers.

If you’re buying from a distributor with AS6081 and more, that counterfeit risk disappears.

3. Collaboration is Fundamental

The biggest benefit that comes from an authorized and independent is what is called collaborative advantage. Collaborative advantage is the benefit achieved when individuals, organizations, or societies attain more than they would have independently, by working effectively with others. Sociologist Richard Sennett said, “cooperation oils the machinery of getting things done, and sharing with others can make up for what we may individually lack.”

Rosabeth Moss Kanter from the Harvard Business Review in her article Collaborative Advantage: The Art of Alliances said that “in the global economy, a well-developed ability to create and sustain fruitful collaborations gives companies a significant competitive leg up.” Kanter goes on to explain that during her research companies in different industries with different but complementary skills link their abilities to create value. Authorized and independent distributors have a depth of knowledge and benefits to offer beyond their more specialized counterparts.

An authorized and independent distributor removes the headache of jumping from one distributor type to another. Everything being done in one place means clients can focus on growing their business and maximizing productivity. This foundation for such a strong relationship born of collaboration means when the going gets tough in future crises, your partner has your back.

Area51 Electronics has All 3 and More

As an authorized and independent distributor, Area51 Electronics has all three benefits listed and more. As a company that breathes collaboration, strives for top quality, and has a combined profile of over 150 authorized lines with an extensive independent portfolio, they’re the partner you need in times of crisis.

Area51 Electronics is a diverse supplier that is minority owned and believes the smallest things make the biggest difference. That is reflected in their approach as an electronic component distributor by operating as an authorized and independent. Area51 Electronics seeks to maximize results for their partners without expensive costs or limiting themselves as a one-type distributor.

If you’re ready to take the next step in growing your business with top-of-the-line components and quality management, Area51 Electronics is ready to help.

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