Viability of E-commerce as an Alternative Distribution Channel in Semiconductor Industry
E-commerce completely changes the game of distribution for the semiconductor industry. It makes products available for a large customer base immediately and requires fewer intermediaries. The need for storage locations is limited, too. E-commerce makes it possible that shipment and inventory management are predicted in advance and optimized.
Let’s discuss the feasibility of e-commerce as an alternative distribution channel in the semiconductor industry.
Better Employee and inventory management
E-commerce is one of the most efficient distribution channel available for a semiconductor distributor. It reduces dramatically the need of multiple storage locations, distributors and brokers to deliver the product to the customer. By digitalizing inventory management, storage, shipment and sales, e-commerce make the whole process smoother. While the classic distribution channels make the distributor struggle with the need to accumulate know-how and contacts, e-commerce can be safely operated with IT-educated personnel only.
Better exposure of products
Physical distribution channels count on different strategies to push a particular product. In e-commerce, the buyer can easily find whatever he is looking for through searches by applying filters including pricing, size, purpose, etc.
In addition to easier management and lower costs, the best advantage of e-commerce for semiconductor distributors is the personalized interactive advertising. It shortens the purchase process significantly and helps in offering the product to target customers even before they have identified their need for the product.
Maximum capacity at minimum cost
One of the greatest contributions of e-commerce to distribution in the semiconductor industry is that it enables the distributor to manage its transportation and storage tasks at maximum capacity and minimum cost. In the classic distribution channel, a distributor has to move the goods from the manufacturer to their stores until there is demand for the products.
From the above discussions, it can be easily concluded that considering e-commerce as a distribution channel is a wiser thought for a distributor in the semiconductor industry. It can easily be diversified and makes the delivery process smoother compared to that of the traditional distribution structure. Making the process smoother and more steadfast for all the stakeholders in its business, V5 semiconductors has forayed into the online platform with an inventory of wide variety of semiconductors and electronic components from world class manufacturers.