Anglia Components has founded Adios Electronics, a component broker business unit which will initially be selling products from Analog Devices Inc. (ADI), Linear Technology, and Maxim.
In a departure from the traditional broker business model, Adios is carrying $2 million worth of analog semiconductor products in its inventory ready for customers to order. “We have profiled the stock using our history of popular parts and they will be available at a killer price, that sell and brands that sell,” says Steve Rawlins, Anglia Components CEO. “Research shows that customers buying out of franchise do it because they want a deal.” He anticipates pricing to be a negotiation so there will be no online sales.
The move follows Analog Devices’ decision last year to axe Anglia from its distribution network, despite the Wisbech-based distributor taking annual sales up to £20 million.
“We are coming out fighting,” proclaims Rawlins. “Customers want to buy from us, and they were disappointed we don’t have those product lines anymore. That got me to thinking about outsourcing which we have never done in our 50+ years of business.”
Using its contacts in the Asia-Pacific region, Anglia has forged deals with 10 independent suppliers.
“We’ve done all the financial checks, quality and assurance checks,” says Rawlins. All Anglia account holders have been given accounts with Adios.
He emphasised that Adios will operate separately from Anglia. “It will have a dedicated sales team, separate P&L, and its own website. All the part numbers are listed there,” adds Rawlins. He puts investment in the new business at between £1-2 million.
Adios has an ABI Electronics component tester, and Rawlins has instigated strict moisture sensitive level procedures. Only five trained people will have access to the MSL room. “It’s part of the service,” says Rawlins.
As a broker, Adios will be able to sell product worldwide.
Anglia is positioning the Adios launch as giving customers a greater choice.
Comments John Bowman, Anglia Marketing Director: “There is a trend among certain large semiconductor manufacturers to reduce their distribution network. This, of course, reduces their operating costs and increases their profitability, whilst giving them an unhealthy leverage and restricting customer choice. For over 50 years, Anglia has been guided by customer demand; the ADIOS investment over the last 12 months comes as a response to a real need from our customers.
“We are taking a stand against suppliers that operate restrictive sales channels. We are firmly committed to giving customers the choice of where to buy semiconductors, and we believe that with the creation of ADIOS, completely separate from Anglia, we will be able to deliver on our promise to give customers what they need.”
