Useless local distributors !!

I know there is not much electronics manufacturing left in Australia
these days but I now find the local distributors to be next to useless.

As an example we need around 100 zilog z8 encore chips for an up coming
job.
The local distributor has quoted a lead-time of 8-10 weeks, MOQ 180pcs
at a price of $6.34ea with $12.00 post and handling.
I can buy the same part on-line from Digikey or Mouser for $5.50
delivered within around a week and I can buy the quantity I need
(100pcs).

The only advantage I can see in using the local distributor is we have
an account with them. Their technical support is useless, they don't
keep samples or any stock and their lead times are terrible.

Is everyone else in manufacturing having the same problems? What
future do local distributors have in Australia now on-line buying
houses are available?

Regards,
Dean.

 

[David L. Jones]

dean@impartsp.com.au wrote:

I know there is not much electronics manufacturing left in Australia
these days but I now find the local distributors to be next to useless.

As an example we need around 100 zilog z8 encore chips for an up coming
job.
The local distributor has quoted a lead-time of 8-10 weeks, MOQ 180pcs
at a price of $6.34ea with $12.00 post and handling.
I can buy the same part on-line from Digikey or Mouser for $5.50
delivered within around a week and I can buy the quantity I need
(100pcs).

That's a non-brainer then! :->

The only advantage I can see in using the local distributor is we have
an account with them. Their technical support is useless, they don't
keep samples or any stock and their lead times are terrible.

Has it ever really been any different?

Is everyone else in manufacturing having the same problems? What
future do local distributors have in Australia now on-line buying
houses are available?

Not much really, although they are often the only way you can get the
more specialised parts you can't get through the stock providers.

Farnell/RS/Digikey/Mouser et.al are the go, even if you have to pay
more. Time to market is the killer these days, who can wait 2/4/6/8/10+
weeks for a part? Well, actually I've worked on several military
projects were that isn't an issue at all :->
A lot of my stuff these days has ridulously small time to market,
you've gotta get that part same day or next day or the world will
end...

Dave

 

[dmm]

On 28 Jul 2005 23:05:44 -0700, dean@impartsp.com.au wrote:

I know there is not much electronics manufacturing left in Australia
these days but I now find the local distributors to be next to useless.

As an example we need around 100 zilog z8 encore chips for an up coming
job.
The local distributor has quoted a lead-time of 8-10 weeks, MOQ 180pcs
at a price of $6.34ea with $12.00 post and handling.
I can buy the same part on-line from Digikey or Mouser for $5.50
delivered within around a week and I can buy the quantity I need
(100pcs).

The only advantage I can see in using the local distributor is we have
an account with them. Their technical support is useless, they don't
keep samples or any stock and their lead times are terrible.

Unless you are manufacturing with large quantities, and are prepared to
schedule deliveries of jelly bean components from vendors, then you
should be prepared to source your specific components from overseas suppliers.
Hong Kong, China, US, etc have good suppliers. Manufacturers have
their own schedules though, and distributors have to fit within that framework,
especially if the manufacturer has long lead times on their components.

However, be prepared to march with your wallet to other vendors in full view of
the local distributor. If they see that you're serious about sourcing the
components o/seas, they will try to win back your business, especially
if it means that you will source the remaining components in your product(s)
from other vendors.

Is everyone else in manufacturing having the same problems? What
future do local distributors have in Australia now on-line buying
houses are available?

Regards,
Dean.

I've never thought that local disti's have had a good future, especially since
on-line vendors are around. However, the upshot of it is, is that if the local
can't give you what you want cheaply, someone else will. It's just competition,
which I feel is good for the marketplace.

Currently we're buying components here and shipping them across
to China, and getting the finished products back within a week or so.
But I can see that we're going to outsource locally sourced components
to overseas vendors soon.

We've offloaded our pcb manufacturing and board stuffing to China.
70c to load a 4 layer board with about two hundred surface mount
components, both sides is a pretty good price, and the quality is good.
We had some issues with some manufacturers, but found a good one.
We still do the programming and testing in-house though.

 

[The Real Andy]

On 28 Jul 2005 23:05:44 -0700, dean@impartsp.com.au wrote:

I know there is not much electronics manufacturing left in Australia
these days but I now find the local distributors to be next to useless.

As an example we need around 100 zilog z8 encore chips for an up coming
job.
The local distributor has quoted a lead-time of 8-10 weeks, MOQ 180pcs
at a price of $6.34ea with $12.00 post and handling.
I can buy the same part on-line from Digikey or Mouser for $5.50
delivered within around a week and I can buy the quantity I need
(100pcs).

I feel your pain. However, 100pcs is small, and 8-10weeks is fairly
standard and has been for a while now.

The only advantage I can see in using the local distributor is we have
an account with them. Their technical support is useless, they don't
keep samples or any stock and their lead times are terrible.

Shop around. Some distributers are good, some are shit. I do get
pissed off with the samples. However in saying that, I dont expect
them to carry a sample of every part that I want.

Is everyone else in manufacturing having the same problems? What
future do local distributors have in Australia now on-line buying
houses are available?

The problem with online buying is shipping and import duties. Small
quantities ok. large bad. If you want more that 100pcs or you are
doing a run of 100+ boards then it is time to be looking offshore. You
will find much better prices, much better quality (even ex china) and
much higher yeild rates. As an added bonus, some offshore
manufacturers will even cover the cost of EMI and electrical
compliance, so long as you dont mind working in with them.

Regards,
Dean.

Mind you, I am about 4 years out of hardware design now, so I am going
on the very few contract jobs that I do, abd no distributer likes
small time contractors.....$$$$

 

[Joerg]

Hello DMM,

However, be prepared to march with your wallet to other vendors in full view of
the local distributor. If they see that you're serious about sourcing the
components o/seas, they will try to win back your business, especially
if it means that you will source the remaining components in your product(s)
from other vendors.

Yep. Ye olde capitalism at its best. Works all the time.

... It's just competition, which I feel is good for the marketplace.

Absolutely.

Currently we're buying components here and shipping them across
to China, and getting the finished products back within a week or so.
But I can see that we're going to outsource locally sourced components
to overseas vendors soon.

That might also save some customs paperwork. Every time merchandise
crosses a border chances are it gets taxed. So the least number of
border crossings is usually best.

We've offloaded our pcb manufacturing and board stuffing to China.
70c to load a 4 layer board with about two hundred surface mount
components, both sides is a pretty good price, and the quality is good.
We had some issues with some manufacturers, but found a good one.

Can you tell us which one? And if you give us your name and we use them
we could tell them you recommended the company. Then maybe next time you
visit they'd really roll out the red carpet ;-)

Regards, Joerg

http://www.analogconsultants.com