ECIA and Texas A&M University Launch Major Research Project Quantifying Value of Authorized Distribution 

Update to Groundbreaking 2001 Research Will Capture and Analyze Industry Transformation in Past 20 Years

ATLANTA – In 2001-2002, the Industrial Distribution Program at Texas A&M University conducted the ground-breaking study entitled ‘Quantifying the Value of  Authorized Electronic Distributors.’ The results showed that using the Distribution channel resulted in savings ranging from 15-50% for customers and suppliers. These results were widely presented, published as a report and as an online Value Calculator.

ECIA is pleased to announce that, under the direction of the Board of Directors, a new study entitled ‘The Value Delivered by Authorized Channel Partners for Electronic Components’ has been commissioned. This study is being conducted by Texas A&M’s Thomas & Joan Read Center for Distribution Research & Education, under the direction of Dr. F. Barry Lawrence, PhD and Dr. Esther Rodriguez Silva, PhD.

“Electronics Distribution business practices have undergone a major transformation in the past 20 years,” explained ECIA Chief Analyst Dale Ford, who is spearheading the project. “Innovations in design, engineering, sales, marketing, logistics systems, and supply chain have produced new value-added services (VAS), distributor capability, customer expectations, and supplier go-to-market strategies. The cross-channel cost savings and value of these new business models need to be better understood and quantified.” New to the updated study is the value of Independent Manufacturers’ Representative firms.  Reps play an integral role in the go-to-market strategy and channel structure of many electronic components manufacturers.

The principal audience of this study will be manufacturers’ executive teams. This new study will explore and develop an analytical model and value analysis for electronics manufacturers. In addition to analyzing the categories used in the previous study, this study will update the original study and quantify new areas such as new value-added services (VAS), digitization of sales processes, focus on customer experience, development of analytics, demand creation, and strategies for generating, managing & sustaining growth.

“Manufacturers can unlock significant value from distribution and manufacturer reps by building a comprehensive sales-channel strategy and execution plan,” ECIA President and CEO David Loftus continued. “But they need a better analytic framework to see the potential cost impact across the entire value chain. That’s what this research will give them.”

The project is expected to take about one year to complete. Initial findings from the study are scheduled to be revealed at the ECIA Executive Conference in October followed by delivery of the updated cost calculator.