NEWS ANALYSIS DISTRIBUTION
It’s a critical time for many companies
around the globe so my first question to Ian
Wallace was what impact was the coronavirus
having on delivery times and how much are
they being extended by?
“At Digi-Key, our thoughts and prayers
go out to everyone impacted by COVID-19
worldwide, and our primary concern is for
the health and safety of our team members,
customers and business partners.
“While the COVID-19 situation is rapidly
evolving and we don’t know all of the impacts
yet, we do know that our business model
positions us with substantial inventory to
offer minimal disruption to our customers,
and we have worked closely with our multiple
carrier partners to mitigate impact on cargo
plans.
“We’re providing updates and FAQs on
our website for our customers and we’re in
constant communication with our suppliers.
“While these are unprecedented times,
we’re working to monitor the situation with
suppliers and we’re getting
updates regularly so we can
provide any changes in lead
times and pricing to our
customers.
“Factories in China are
slowly getting back up and
running, and while it will take
some time for them to be back
to full production, Digi-Key
will continue to invest heavily
in providing inventory for our
customers.”
NT: Turning to other challenges
Brexit still looms large. Even if,
in the light of the coronavirus,
it is delayed what have you,
as a distributor, been talking
to customers about in terms of how it
could impact supply chains, and what are
companies looking to do to prepare or preempt
any problems?
“While the world doesn’t know all the
implications of Brexit yet, we haven’t seen a
dramatic impact but will continue to monitor
it closely. We do know that our customers
want and need solid, reliable supply chain
partners so they can continue to deliver to
their customers.
“Digi-Key’s focus is on consistency
and continuity and providing the broadest
selection of products and high levels of
inventory - more than 10 million products
globally, with more than 2.2 million in
A world on lock-down
NEIL TYLER TALKS TO IAN WALLACE, DIRECTOR, EMEA BUSINESS DEVELOPMENT
AT DIGI-KEY ELECTRONICS ABOUT HOW DISTRIBUTORS ARE COPING WITH
UNPRECEDENTED TIMES
stock from over 800 quality name-brand
manufacturers.
“Customers ordering online can count on
their order to be picked, packed and shipped
out in 20 minutes, arriving to them in just
48 hours to the UK and that’s not going to
change.”
NT: Digi-Key is now offering online
scheduling. What is it and why have you
introduced this?
“Now available for our European customers,
online scheduling provides customers the
convenience to plan and place orders up to
“While these are
unprecedented
times, we’re
working to
monitor the
situation with
suppliers and
getting regular
updates.”
Ian Wallace
six months out in their local currency.
“For contract manufacturers, OEMs and
other customers seeking quantities above
and beyond their normal engineering or
prototype quantities, Digi-Key’s new online
scheduling helps to manage planning and
deliveries. Online ordering helps customers
to streamline project planning, take
advantage of lower prices at higher price
breaks, and secure future product stock in
advance.
“To get started, they simply need to
register online.
“We implemented online scheduling
based on customer demand for it, and we
encourage customers to continue sharing
their feedback and insights so we can best
support them now and in the future.”
NT: What is the impact of the new
Incoterms 2020 on distributors like Digi-
Key - what implications/costs/benefits will
customers see?
“At Digi-Key, the four Incoterms we currently
use – DDP, CPT, FOB and FCA – have only
minor changes and will not be noticeable
in delivery service, and therefore shouldn’t
cause any disruption or issues for our
customers.”
NT: In terms of these business challenges is
Digi-Key changing the way it operates?
“Digi-Key’s business model and commitment
to providing the broadest selection of
products and high levels of inventory to
support customers with what they need
when they need it, combined with an online
model and customer service, will not change
because they all contribute to a reliable and
consistent customer experience through
challenging times.
“In fact, we’re doubling down on this
approach and continue to invest in our
customers and in the future through new
tools, support, adding more than 200 new
suppliers and 300,000 new products, and
building an expanded 2.2 million square foot
Product Distribution Center that will provide
even more power, automation and efficiency
for our customers.”
NT: Are there any specific challenges or
issues, beyond Brexit, facing distributors
operating in the UK?
“Brexit and COVID-19 have been the
challenges recently in the UK and globally,
but again, our Digi-Key business model puts
customers first, ensuring we can be the
reliable, dependable supply chain partners
they need.
“There will always be challenges, and we
will always continue to put our customers
first and evolve our support and tools to
deliver the products and service they know
from Digi-Key.”
www.newelectronics.co.uk 24 March 2020 7
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