The role of distribution in the Semiconductor Supply Chain adds considerable value, acting as the connection interface between the original factory and various semiconductor and component customers. Essentially, the splitter provides a buffer between these two giant gears. Component Distributors absorb the shock and ensure the smooth running of the industry. Like a sponge, when supply exceeds demand, distributors hold onto or stockpile the excess, adjusting their supply. When supply exceeds demand, inventory can be released quickly to meet market demand.
Development Status of Distributors
The semiconductor supply chain is evolving rapidly. The original semiconductor fab would find it impossible to focus on a large number of customer applications. However, distributors can reach and serve a wide range of customers, tracking products to final resolution. Applications span communications, consumer electronics, Internet of Things, automobiles, energy, industry, and automation. Distributors use their own technical capabilities and market resources to help semiconductor manufacturers implement products. At the same time, they can collect data on the actual landing of original products, and feed back the most cuttingedge market information to original manufacturers.
The role of distributors is well known, but now, after nearly two years of persistent shortages, many end custo-mers have been forced to revisit and rethink the security and sustainability of their own supply chains, the real value that independent distributors provide began to appear to be appreciated and understood.
The Transformation Path of Distributors
The reality is that for SMBs, sourcing components is cumbersome, time consuming and inefficient. With large distributors unwilling to help, traders are the only option. Smaller companies lack the procurement time and resources to deal with multiple suppliers just to complete a single bill of materials, and thus run the risk of counterfeit and low-quality components.
In order to serve so many customers, component distributors must focus on their digital transformation capabilities, strengthening their ability to provide customers with 24/7 one-stop solutions to meet their needs, and provide transparency and centralized data.
However, digital transformation alone is not enough. To gain a foothold in the industry, distributors need to differentiate themselves through value-added services that align with their core principles and talents. Ultimately, with a focus on innovation, distributors must differentiate themselves to gain a competitive advantage and position themselves with clearly defined value-added services that no one else can replace.
Witnessing the pain points encountered by small and medium-sized enterprises in the procurement process, Winsource established Asia’s first overseas B2B e-commerce platform – Winsource Online Mall (www.win-source.net）Whether it was or is now, it provides customers with comprehensive access to an integrated global supply chain, fulfilling customers’ procurement needs in one place, allowing them to spend the rest of their energy on innovation.
For 24 years, Winsource has an independent and mature supplier management system. Believing that its strict supplier approval process has been met, customers can enjoy the lowest procurement cost to grow their business.
In accordance with IDEA-QMS-909 and other quality management system standards, all internal departments of Winsource adopt the company’s unique quality control system from beginning to end. This includes adherence to precise environmental and humidity controls and ANSI/ESD S20.20 certified handling procedures.
Focusing on customer groups such as EMS and OEM in the electronics industry, customers rely on Winsource to realize one-stop BOM procurement, and quickly get out of stock & expired inventory. The continuous optimization of the online shopping platform and supplier network, as well as the continuous development of the internal supply chain operation system, make WIN SOURCE a leading independent distributor in Asia.
