Independent Distributor vs. Broker

The difference between independent dealers and agents

In the electronic components industry, independent distributors and agents are helping oem dealerships and manufacturers can not be safely obsolete and dying section. And independent distributors and agents have the same goal hat help buyers and sellers find his similarities.

value procurement agent electronic parts when needed, but they usually do not provide other services, such as a comprehensive quality inspection process, inspect the differences existing market conditions and visibility.

Get to Know Your Supplier

A broker can be defined as a small firm or an individual with a limited supply of parts/inventory. A broker’s place of business can range anywhere from a garage/basement to a 5,000-square-foot facility, but this minor detail is not always readily disclosed or known to the manufacturer/customer buying the parts.

An independent distributor can also be defined as an established firm, but may offer a larger facility with additional resources such as a global network, quality control/inspection process, excess inventory management, and market intelligence to provide extended services prior, during, and immediately after the transaction. An independent distributor can invest in these additional resources, whereas a broker may not have the capital or real estate to offer them at all.

So what does an independent distributor have that a broker may not?

Market Intelligence
An independent distributor can provide  into what is going on in the marketplace. Whether the customer is facing a shortage in parts or a need to manage surplus inventory,commodity managers can assist the customer in making a long-term, educated decision based on changing market conditions. This decision can ultimately equal cost savings and reduced risk in the supply chain.

Quality Assurance Programs
An independent distributor can offer a rigorous quality inspection process utilizing the latest state-of-the-art testing equipment,trained and certified component inspectors/engineers, and a vendor management program to ensure the authenticity of each component being received.

Global Footprint
An independent distributor can have facilities strategically located around the world, with an established global logistics infrastructure and integrated systems that can provide a range of services—from warehousing to packing and shipping for customers.

High Industry Standards
Independent distributors are typically required or expected to adhere to more stringent industry standards.

Since independent distributors offer more resources than brokers, they can also provide a higher degree of certainty for their customers that brokers cannot. An independent distributor will stand by the product or shipment if there ever is a problem or discrepancy and will be there to remedy the issue.

For more information about independent electronic components distribution, contact us.