The Electric Current Magazine March 2019 | Page 10

By doing this, independent distrib-
utors protect the supply, but are
also able to lock in lower prices by
making purchases before the inevita-
ble changes driven by reduced supply
and increased demand.
To protect high-volume orders, a dis-
tributor can lock in prices and deliv-
ery dates for many months at a time.
This ensures that the inventory will
be there when the customer needs it
and not sold to someone else.
In some cases, they can even make
speculative purchases for a customer
and/or provide financing to purchase
inventory when a qualified client has
capital constraints.
Global Networks
Another direct source for high de-
mand parts comes from tapping into
a large global network. Because of
the worldwide demand for compo-
nents, independent distributors have
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TEC Magazine • March 2019
expanded globally and placed sourc-
ing experts in key supply markets.
For example, in addition to its 60,000
square foot facility in Torrance,
California, Classic Components has
established 12 regional offices in
strategic locations throughout the
world to support its global distribu-
tion business. The company boasts
nearly 200 employees, who special-
ize in various aspects of the busi-
ness, including supply chain, quality,
technology and logistics.
The buyers can develop an intimate
knowledge of regional supply chains
with the expertise to find and man-
age quality component suppliers.
These experts then leverage these
relationships to bring the best price
and delivery to their customers.
“By using regional quality centers
and logistic hubs, we have the flexi-
bility to purchase components from
any country, in any currency, and
then ship them to anywhere they are
needed,” explains Thomas.
He gives the example of a customer in
Mexico that wants components from
Taiwan, due to availability. If the
Taiwanese supplier will only sell to
local companies, Classic Components
can purchase the components from
its satellite office located there. Later
the stock can be transferred or sold
to another branch office before it is
ultimately delivered to the customer
in Mexico.
Classic’s global logistics can also help
to manage or avoid tariffs by ship-
ping to and from our international
hubs in Hong Kong and the UK.
Rigorous Vetting
Another way to ensure the reliability
of the independent distributor is to
ensure they are thoroughly vetted.
Established companies are used to