Component Sales Transactions via the Web

Online buying continues to grow

Sales transactions via the Web are still a small portion of the distribution industry’s sales, generating between 1-54% of total sales, according to Purchasing’s survey, although more distributors are offering online buying this year. Catalog distributors report some of the strongest sales via the Web. Digi-Key says 54% of its sales are derived from the Internet, which is up from 47% in 2005, followed by Mouser with 31%, up from 28% in 2005; and Allied with 19%, up from 18% in 2005. Others that reported online buying in the double digits include Beyond, DEE, Fedco, Flame, Garrett, JRH, Kensington, Master, Nedco, Schuster, and Symmetry. Fifty-five of the Top 75 offer online buying, nearly the same as last year, when 56 distributors said they offer 
online sales. Fourteen of the top distributors reported double-digit sales via the Web, which is down from eighteen in 2004. However, 24 of the top distributors did not provide the percent of their sales through the web. Many distributors are still primarily using their websites to provide product information, including the ability to access datasheets. Many are also offering requests for quotes and inventory searches. For those with online shops, they offer order tracking and in some cases personalized extranets for e-procurement services.

3rd Party Logistics (3PL)

Hi-

the subject of providing a partner 3PL was discussed during the week. The purpose is to provide a warehouse that will emulate the warehousing activities of the catalog houses. It will also provide our customer with a place to obtain samples for their bread boards.

• The 3PL will be a fetch Solutions distributor who has capacity and warehouse space to ship to our community engineering quantities.
  
• Distributor is looking for another revenue stream to make better use of his B2B warehousing activities.
  
• The Inventory will be on consignment from the partnering distributors.
• We will provide 24/7 shipping capability....An additional surcharge will be charged for 24/7.
  
• Pricing will be based upon the Octopart search.....Price it aggressively - To disrupt the desire to use the catalog distributors(digikey, newark) . Octopart URL is: www.octopart.com
• A formula will be developed to split the commission between the 3PL and the franchised distributor.
• Engineer/buyer will now be able to keep all their component requests at fetch Solutions.
  
• The financial considerations would rest with the 3PL provider.
• We will try to find a fastener distributor to be the3PL. In this case their will not be a competitive relationship. The hardware guy will be the provider of fastener products.
• 3PL can also perform the task of consolidation the orders from our partnering distributors to be shipped to the customer as one shipment or any other special shipping instructions.
  

It is my opinion that this support activity should be ASAP---


TC

Questions to ask the Reps, Disty's and Manufacturers

As we begin to roll out the software ...We need to determine from our intended partners what tools they would like to see at fetch Solutions.  Please send to me your thoughts so that we can capture the Q's and have them be available at our blog site for a centralized list of Q's.

Please send the Q's to my gmail address and I will post for all of us to access the fridgets!

Tim

Charge a Hook up Fee to all future Sales-Chain Partners

Hi-

Bill B has suggested that we need to charge some sort of a fee at the front end....This fee should be enough to get the CEO to make sure that the fetch Solutions is being used properly.

We might want to make it a hook up fee, or a sign on fee.  Bill feels strongly that if money has been committed...Then Mgmt is going to make sure that the $$$$ are well spent.

Peter, Bill and I are in total agreement on this one!

Keep the Logos at the family tree

Michael & Del-  Peter and I like the look and the feel of the manufacturers logo at the family tree.  Bill was not sure of its merit!  Sorry Bill---Keep the logo at the family tree.

Tim

Octopart search engine

Parts

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Octopart is a search engine which lets you compare the prices and availability of electronic parts across different distributors.*

Octopart was started by two physics grad students who were tired of searching for identical electronic parts in lots of different catalogs. Our search engine is a work in progress and we appreciate comments and suggestions.

We are also interested in contacting distributors and manufacturers of electronic parts. Listing inventory and sending us data for display on the site is a very easy process.

Please contact us via email at contact@octopart.com.

Sam & Andres

* Octopart has an authorized relationship with all distributors featured on the site except for Allied Electronics, Digi-Key, H&R and Mouser. Data from Allied Electronics, Digi-Key, H&R and Mouser are aggregated from public sources.

Jaco Electronics eCat

Hi all-

Jaco is a $270M component distributor headquartered out of LI. They just announced their e-Cat....'The URL is:

http://vstore.jacoelect.com/Components/

It looks to be a very basic b2b with

• no cross reference capability
• No special pricing
• the site does not identify package size
  
• I do not see any spec sheets

I will spend some additional time reviewing the site...I will send around a comparison sheet later!

Jaco has had over the years a very poor financial record.....But Joel Girsky ( friend of mine)...sees the IT and the b2b sell as a vehicle that should allow them to grow and prosper.

I am still keeping Jaco on my hit list.....He needs fetch to compete with the Catalog Sell....

Introduction to Kara Colletti

Lastly, Del announced that Kara Colletti with be working with us to develop a marketing 

Program and a Roll out of the fetch Solution!

Welcome Aboard Kara

Topics discussed yesterday at fetch e-Cat meeting

The meeting was held on 3/26/07 at the iMark office.  

The attendees at the meeting were Tim, Del, Bill, Mike, and Peter by telcon.

The purpose of the meeting was to review the e-Cat as it is today.  Some of the issues discussed and resolved were:

1. Product Tree will become the primary part search engine.
2. We will have an area for New Products/Featured Products.
3. The New Featured Products area can include both graphics and text.
4. Software Tools will be given to the manufacturer so they can update their product area on the fly.
5. Decided to remove the benefits word from the features/benefits Tab.
6. Tim agreed to research the other competitive sites to determine what else we might want to incorporate at our e-Cat.
7. We need to change the introductory words with a description of our Value Proposition as well as to not use the word Marketplace.  For the time being we will use the word Platform.

In the Product catalog area we discussed the following:

• Ordering
• Part Specifications
• RohS
• Customized Products
• Packaging requirements ....from my review of competitive sites no one is using package specs.  all the pricing is a function of a predetermined mark-up..  ( See further info at this site in the AM.
• Do we use EDI System to send orders to fulfilling partners?????? 
• Discussed sign in procedures....When can a customer use the B2b shopping cart to send his requirements out for fulfillment?
• Sales Force...feet on the street inputting info for processing privilege
• Use of an entry level password
• Use of a tear off card or email system to inform the user is priviledges at fetch Solutions

Welcome to the fetch fridget blog.  It is a place for our fetch immediate team to review, comment and change the material that will be incorporated into the fetch Solution eCatalog.