Value-added services are distribution cash cow

Article Abstract:

Companies throughout the electronics and semiconductor industries increasingly rely on the services provided by VARs to complete mission-critical operations and assist in a variety of business functions. Distributors continue to offer customers additional value-added services, as that aspect of the industry accounts for an increasing percentage of overall industry revenues. Value-added services now comprise approximately 24% of overall industry revenues, according to a survey of the top 100 distributors, as companies without specific technological expertise leverage the abilities of those companies that do. The ASIC and programmable logic device segments of the semiconductor industry are encountering the greatest movement towards value-added services, as distributors eagerly provide parts programming operations.

Marketing, VAR, VARs (Value added resellers), Value-added resellers

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Searching for a single European pricing scheme

Article Abstract:

Semiconductor companies are seeking a common pricing scheme for commodity components in the European market. Among the major vendors that are seeking to eliminate the ship-and-debit programs with their distributors are Motorola, Philips, Texas Instruments and National Semiconductor Corp. Traditional distribution methods do not add value and involve considerable paper work and administrative attention. World customers feel it is important they get similar pricing in different countries, and though the industry realizes global pricing is inevitable, it has yet to reach its goal. Motorola began its global distribution in 1987 but has not satisfactorily attained its goal.

Economic aspects, Prices and rates, Western Europe

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The Top 200

Article Abstract:

The US electronics industry experienced a higher growth rate than the overall economy in 1995. Among the top 200 US electronics companies, sales rose 15 percent. Many of these companies took advantage of strong sales to improve efficiency, as opposed to adding more staff. Revenues per employee rose 24 percent, while cost of sales as a percentage of sales rose to 66.3 percent from 63.3 percent. Furthermore, the highest-ranking electronics firms spent more on research and development. Prices were strong for the year, due to demand that often outpaced supply. Distributors also enjoyed higher revenues, although PC makers had mixed results.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Cover Story, Electronics industry, Directory, Review of past year, Business conditions, 1995 AD

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