News

Anglia’s Rawlins rues chip makers online store strategy

Anglia CEO Steve Rawlins has criticised the decision of semiconductor manufacturers to open online stores following the loss of the Analog Devices (ADI) franchise.

“It’s misguided,” said Rawlins. “I fail to understand the advantage to the customer. It reduces the choice of where to buy from the customer.

“Not everyone wants to buy everything from a global ‘supermarket’ where the only service you can expect is ‘self-service’. Distributors such as Anglia offer customer-driven commercial, logistic and technical programs that the global giants – which are run by accountants and who must satisfy the short-term needs of their shareholders – can not. Anglia is able to invest in stock. These services are valued by customers.”

Rawlins is also concerned about the quality of technical support. “Many don’t just want a datasheet, they want advice, they need help recommending parts. We have a team of field applications engineers recruited who help customers with their end-product designs.”

Rawlins mulls whether this shift to online stores will last long-term. “We’ve seen semiconductor companies take this route in the past, and u-turn back to distributors.”

He is saddened by ADI’s decision. “It was only in January this year we were told we were doing a good job, and 10 months later it’s bye-bye. We’re not bitter, as distributors we trade with global business and sometimes it all comes down to size.”

Anglia is already pursuing agreements to replace the ADI products. “They have a wide range so we will probably need four or five suppliers to replace those parts. We are already in advanced discussions and we will be talking to potential suppliers at the electronica exhibition in Munich next week.”

“We invite others who wish to engage with a strong and trusted demand-creation partner that believes in committing to a relationship with a focused supplier base to get in touch,” says Rawlins.

“But in the meantime, Anglia pledges, together with our similarly-committed suppliers, that we will always put the customer first.”