Monday, May 26, 2008

Simcona Electronics Motto is.....

....."Driving Customer Success"

This customer success will be promoted within the electronic components industry by forging a partnership with fetch Solutions!

We are looking for Simcona Electronics to be Our "e-Marketing Beta Distributor" for more Internet sales and more profits. The dramatically reduced expense advantages, combined with the added sales benefits is your recipe for a Robust bottom line net profit result at the end of the year. Let fetch build you an e-Marketing platform today.

Thank You,
TX Cronin Jr.

Saturday, May 24, 2008

High-tech Manufacturing Industry embrace "SaaS"

Home : Technology & Innovation : High-tech Manufacturing Industries Embrace SaaS Applications

SaaS will grow from $3 billion today to $30 billion by 2013, says Deutsch Bank.

By Doug Timmel, Director of Manufacturing Industry Solutions, Bluewolf

May 23, 2008 -- The market figures paint a compelling picture. The number of Software as a Service (SaaS) providers, and the capabilities of SaaS applications, continues to grow at an explosive pace. A 2006 Deutsche Bank analyst report states the industry will grow from $3 billion today to $30 billon in annual revenue by the year 2013, representing a ten-fold increase within the next five years. And, while it's true that this is a small portion of the overall software industry, recent trends indicate this number may be conservative.

The SaaS distribution model, in which applications are hosted by a service provider and made available to customers over the Web, offers many benefits: fast deployment, lower infrastructure and installation cost, lower administration costs, automatic updates and global accessibility. And, the high tech manufacturing industry is jumping on board with SaaS, for all the same reasons.

Many discrete applications lend themselves well to this on-demand model. For example, Salesforce.com for sales force automation and SuccessFactors for human resource management are both notable for their fast growth and success. This is due to the ease of use, lower cost, and ability to implement quickly.

Many vendors successfully started with traditional on-premise software, such as Big Machines for product configuration and complex quoting, Steelwedge or Right 90 for product demand forecasting, and Xactly for compensation management. These applications are frequently integrated with material and pricing master data in Enterprise Resource Planning (ERP) systems. Today, these companies have developed on-demand versions of their solutions. And, new on-demand applications are appearing monthly, including offerings in lean manufacturing, marketing and purchasing.

ERP applications, which previously had not been considered for an on-demand model, are now meeting with great success in small to medium businesses. After three years of code development, SAP recently launched "SAP Business by Design," an ERP suite containing many of the modules inherent in the company's traditional on-premise application. A new, rapidly growing ERP offering is Workday, started by the original founders of PeopleSoft.

High-tech manufacturers have embraced the SaaS approach, as application providers have developed offerings specific to their industry. Design-to-Win, which is a crucial part of the sales and marketing development process, is now inherent in Salesforce.com. And with 50 percent or more of revenue coming from partner sales channels in the high-tech arena, the capability now exists to view and monitor partner activity and design-to-win success rates. As high-tech industries have vast quantities of parts (stock-keeping units, or SKUs) with complex pricing, high-tech firms can easily and quickly do complex product configurations and quotes. This process incorporates workflow for approvals, which give further discipline within the pricing process and assures better Sarbanes Oxley (SOX) compliance.

Another example where SaaS applications have aided the high-tech manufacturing industry is the acceptance of demand forecasting tools. These have proven to greatly improve forecast accuracy, down to the SKU level, for complex material inventories. The payback using these applications for inventory reduction is a very fast ROI.

As these applications become more robust and all encompassing, integration and seamless data exchange is crucial. A community of SaaS system implementation companies has grown with the pace in the industry itself. While some only offer configuration of the base application, the more innovative and established companies offer a range of process consulting, program management, configuration, integration training and adoption services. Engaging this level of experience and expertise makes startup fast and inexpensive compared to traditional approaches.

In short, there may be no application today within the high-tech manufacturing industry that cannot be cost-effectively, and quickly, adapted to on-demand solutions. Some of the most recognized companies producing semi-conductors, software, networking devices, hardware and electronic components have seen the obvious benefits of implementing SaaS solutions. These companies, known for leadership in innovation, will continue to lead best practices that offer the best return on investment.

Thursday, May 22, 2008

Catalog Distributors are Thriving

Catalog distributors have found success focusing on new product introductions and small production runs.


By James Carbone -- Purchasing, 5/8/2008


Many electronics distributors are concerned what impact the economic slowdown will have on their businesses in 2008. However, while catalog distributors may not be completely recession-proof, they are less affected by the cyclical ups and downs of the economy.

“When you cater to design engineers, that business doesn't stop even though manufacturing slows down,” says Kevin Hess, marketing director for Mouser Electronics in Mansfield, Texas. “People are still designing new products with the latest technology. We provide them with the latest products that our component manufacturers have to offer.”

Catalog distributors such as Digi-Key, Allied, Newark and Mouser, sell small volumes of parts for design, prototype builds and small production runs. Margins of the parts are higher than components sold by distributors that supply parts for production. In some cases, OEMs will turn to catalog distributors for items that may be in short supply.

Catalog distributors often have double-digit growth even when the rest of the distribution industry is limited to single-digit revenue increases.

READ MORE

fetch Solutions "e-Catalog" engine

The fetch Solutions "e-Catalog" engine is provided by i-Mark. i-Mark has been providing "e-Catalogs" to the components industry since 1998. Put a 24/7 BUSINESS™ "e-Catalog" to work on the Simcona Electronics website so visitors can independently search, select and respond. Let fetch Solutions build you an "e-Catalog" so you can show your existing and future customers all the franchised component parts that you have electronically available using your virtual B2B web platform. Having at your web site your own product information "e-Catalog" will provide the users "sticky-eyes"....."The customer will come to your web site and never have to link to the manufacturers site to obtain current product information". The customer becomes your customer! You will immediatly differentiate yourself from your dasterdly competitors and you will be recognized as being a technology driven company with the tools to support your global "supply-chain network".

Engineers and Buyers visit your website everyday. For them, your website is their first choice for information about your company's products. For you, they're your highest quality leads. Giving them access to 24/7 BUSINESS™ gives buyers everything they need to find the right product at the right price and to self-serve their orders or RFQ's for your sales chain partners to access 24/7!

24/7 BUSINESS™ product selector / configurator enables engineers and designers to easily search and select the right product for their requirements. Users intuitively drill-down, quickly refine their search and gain immediate access to all the technical information they need to easily make specifying / buying decisions.
Filtered parametric search by product attributes - A valuable tool for knowledgeable customers who can choose or input values to find the products that best meet their needs.
Side-by-side comparison - Eases the task of comparing similar products.
Cross-sell / Up-sell - Allows you to suggest add-ons or accessories to include in the purchase or RFQ.
Keyword / Part number search - Allows your customers to find the exact products they are looking for.
Competitor part number interchange - Enables your competitor's customers to cross-reference to your part number from your competitor's part numbers.
RFQ / shopping cart - Offer your customers and prospects a method for receiving quotations and placing orders.
Customize Part Request - Allow your customers the ability to request customization to your standard products within the range of your product's limits.
CAD viewing / downloading - Give your customers the ability to view, pan, zoom, download and print 2-D and 3-D CAD files.

24/7 BUSINESS™ lead manager prioritizes sales inquiries based on your rules and delivers straight to your sales force to ensure they are pursuing high-quality sales opportunities.

For Distribution - Service is Key

Distributors Supply-Chain role grows

Service is key

Component manufacturers are servicing fewer OEMs and EMS providers directly. The manufacturers they do service are very large and most of them have moved manufacturing to Asia or other low-cost areas. Component manufacturers are relying on distributors more to service more of their customers, especially in North America.

“Distributors have become responsible for literally 99% of the customer base,” says Roy Vallee of Avnet Electronics. “Most suppliers we deal with now sell to 50-250 accounts directly. And we are servicing over 100,000 customers.” About five years ago suppliers would service between 1,000-2,000 customers directly, he says.

Suppliers want to reach those hundreds of thousands of customers that distribution services, says Bill Mitchell, chairman and CEO of Arrow Electronics in Melville N.Y. “Our sweet spot is small- and medium-size customers, and suppliers want to partner with us to reach that customer base,” he says.

Many of those companies have between 100-1,000 employees, don't have the purchasing, engineering and logistics staffs or IT capabilities and need a distribution partner to provide those services, according to Mitchell.

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Simcona Electronics Opportunity using the fetch Solutions "e-Catalog"...

Let fetch Solutions build Simcona Electronics an "e-Catalog" so that your company can self-serve all the companies that want to order products via the Internet. Simcona Electronics will begin to be looked at by your peers and your customers as an Internet saavy B2B company that will take full advantage of the new found Internet fourth sales-channel. More sales at a greater profit will make the Simcona Management team very happy next year. Simcona Electronics has always been a profit driven company...fetch Solution is the right tool to assist the sales team in bringing into the boat an additional 10% of sales and three times the profit using the Internet Sales platform over the next 12 months.

SELF-SERVICE Revolution for the components industry

The Self-Service Revolution
By Diane Trommer

As service providers, electronic component distributors’ value proposition is typically defined by their ability to not just meet, but also exceed customer expectations. Sales representatives or field application engineers who are willing to go the extra mile are rewarded with both business and customer loyalty. In today’s fast food, have-it-your-way world, however, distributors are finding that a best-in-class, customer service experience is not just a byproduct of physical efforts on behalf of the customer. These days, superior customer service is also defined by a distributor’s ability to help customers help themselves with Web-based tools and services.This is a somewhat revolutionary approach for broadline distributors, said Beth Ely, senior vice president and director of new channel development for Avnet Electronics Marketing Americas, Phoenix. As middlemen in the supply chain, distributors are understandably wary of anything that might distance them from their customers. At first glance, both the Web and the concept of customer self-service seem to represent potential threats to the distributor’s share of the supply chain pie. Yet, as the pressure to shrink development costs and lead times mounts, customers are increasingly turning to distributor partners for easy access to do-it-yourself online tools and information. “Our experience has shown that tools which enable customers to perform certain tasks at their own convenience without the need for outside intervention actually strengthen the bond between Avnet and our customers,” said Ely.

Though the Web has hardly been an overnight sensation that many predicted it would become in terms of pure e-commerce, the impact of its slow but steady infiltration of the electronic supply chain should not be underestimated, according to Robin Gray, executive vice president of the National Electronics Distributors Association, Alpharetta, Ga. “It has taken time for the distribution sector as a whole to find the best ways to use the Internet. But as they continue to refine the functionality, there is increasing benefit and value out there for the design engineering community.”

Distributors that reap this benefit are able to translate the value that defines the company offline into the online experience. “Any site can take you to a part, but what is most important is assuring that the part is the optimal choice, that it can be supported through the development and production of the customer’s end product,” Ely said. “My goal is to harness the richness of information that differentiates Avnet and bring that online.”

Avnet offers a range of online resources to customers including component user guides, schematics and test files, as well as on-demand Web seminars and e-newsletters featuring the latest products and services available. Avnet also recently updated its PartBuilder parametric search tool to provide detailed product data for nearly two million parts that are now accessible through the distributor’s Web site. PartBuilder enables users to search the Avnet database using a part description versus a specific part number. When a search is performed, the data returned includes the technical specifications and other relevant information like whether the part is stocked and if it is a top seller.

Going forward, Ely plans to further refine the search capability to enable even more intelligence in the search results. This will include more informational offerings on parts and services related to the original search topic. If a customer searches for a particular FPGA, the results will include links to information such as evaluation boards for the device and related seminars. “This will allow online customers to benefit from the same kind of value add recommendations that they would receive offline from our technical specialists,” said Ely.

For catalog distributors, the self-service concept has long been a part of the business model. The Web now enables these distributors to go beyond pure product selection and offer a greater scope of value add services. For example, Digi-Key Inc. of Thief River Falls, Minn., has established a library of on-demand product training modules. The modules offer engineers around-the-clock access to in-depth training on some of the industry’s latest and most innovative products, according to Digi-Key President Mark Larson.

Digi-Key has also updated its static online catalog with a new interactive version that features clickable part numbers, as well as links to detailed product data sheets and photos. “For our customers, the e-commerce model is very convenient because real-time pricing, availability and product comparisons are just a few clicks away,” Larson said. “This allows users to not only research components, but also purchase them from anywhere at anytime of the day or night.”

While component sales are the ultimate goal for all distributors, the full scope of the impact and value the Web has had on the electronics supply chain is difficult to quantify. “A lot of people use distributors’ sites for a wide range of tactical and value added information, but not all (customers) buy online,” said Ely. “If we continue to measure strictly by percentage of revenue, we will miss the fact of how revolutionary the change in the way customers conduct business has been.”

Supply-Chain is Vital for Distribution

Top 75 Electronics Distributors: Distributors' supply chain role grows

Suppliers are relying on distributors more than ever to service North American OEMs and electronics manufacturing services providers. Distributors look for similar growth in Asia.
By James Carbone -- Purchasing, 5/8/2008

READ ARTICLE

Trends in Distribution -- "Point of Service"

Trends in Distribution - Point of Service


Distributors of electronic components have been beefing up services in response to needs from their customers. The services they are developing range from design support to supply chain innovations. With product development becoming both faster and more complex, distributors find they can compete on services – not just price – because their manufacturing customers need help in keeping up the pace of new product introduction and also need help in reducing inventory levels. Here are some recently introduced services from distributors

READ ARTICLE

Tuesday, May 20, 2008

What service will fetch Solutions provide Simcona Electronics?

The electronic components market remains quite fragmented. The barriers to entry are being raised all the time and increasingly there are fewer distributors that can compete and survive in the high customer service distribution space.

Today's customers are looking for the following from their distribution friends like Simcona Electronics:
* A breadth and depth of quality franchised components
* Self-Serve B2B capability ....No Sales assist like Digikey and the other catalog houses
* RoHS Product identification and availability
* Superior Logistics to service customers globally
* High Quality, reliable Product Data and Information

Customers also want access to :
* A company that can guarantee its product integrity
* Company specific pricing capability
* A company "e-Catalog" that will allow all the sales-chain to have access to procurement information globally
* Simcona Virtual Platform will provide to the Manufacturers Representative Point-of-Sales" credit for internet order tracking
* Provide the most accurate, updated product information available On-Line for 24/7 referral
* Offer same or next day delivery

"fetch Solutions allows our partnering distributors to be able to meet these eXacting requirements"

fetch Solutions provides as a SaaS an "e-Catalog" Tool that the mid-tier distributors, mid-tier component manufacturers, and the Manufacturers Representatives will need for survival and success. The "e-Catalog" will provide information for all Supply-Chain Partners to access 24/7.

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Lastly, Brian Brown will be sending to the Simcona Electronics Management Team this Blog URL ( http://simcona.blogspot.com) to read industry articles that validate why all Tiers (Top, middle, and small) of the electronic components channel will require an "e-Catalog" to display on a self serve basis all the product information as well as to provide self-serve customer service and sales. The dramatically reduced expense advantages, combined with the added sales benefits is your recipe for a R
ROBUST NET PROFIT each month and at the end of the year.

You may be asking by now the question why Arrow and Avnet are not promoting their own e-Catalog? This is simply because they are attempting to slow down the transformation of marketing their products the Traditional Way and building out an "e-Catalog" using the Internet way.... which is the future of component distribution.

The reason why they have NOT been providing leadership to the components industry is because with their 80 -100 Global Sales Divisions, and their employee payroll-- which is enormous!!!.....They will not be competitive with the "e-Catalog" houses......both Catalog distributors and the mid-tier distributors such as Simcona Electronics will have the decided advantage -- and the Significant No Sales Commission for the new Internet orders.

I am not going to suggest that they will perish, but clearly, they cannot compete on the Internet and maintain the huge "brick and mortar footprint" around the globe and pay the huge payroll. Can you imagine the near term bloodbath if they became "e-Catalog" believers. Their Inside and outside sales force would rebel....and the customers will convert to the mid-Tier e-Catalog distribution suppliers for Instant Product Information.

That is All for now.

Thank You for your interest and attention!

T X Cronin Jr
e-Marketing Consultant
cronin strategic partners