The Source is our latest offering to support our clients and visitors. You can read our Top 5 news for week commencing 25th of September 2023 below.
Hybrid/Independent Distribution adds unique value in the Customers Supply Chain
The last +2 years absolutely amplified the crucial importance of Hybrid/Independent Distribution within the Customers Supply Chain. Tens of thousands of Customers Worldwide reached out beyond their traditional Franchise Distributors to Hybrid/Independent Supply Chain Partners such as Rebound Electronics.
Why? In order to source scarce parts that franchised distributors were unable to supply, often even where in many cases they had back orders. The result for Customers was production lines did not stop & their companies were able to realise equipment shipments, revenues & profitability that would not have happened. This in turn improving their Return on Working Capital as they weren’t holding $1m of stock due to the lack of a $1000 of scarce components.
Rebound recently celebrated 20 years of growth & success achieved by delighting Customers in Europe, Asia & the Americas. This demonstrates that Rebound & Hybrid/Independent Distribution has a key role in every part of the market cycle. The last +2years were testament to the shortage or even famine stage. We are now in a different phase & here again Rebound has a critical value to Customers. This could be in the form of solutions to help the Customers with excess inventory, classic Price Purchase Variance (PPV) or a Suite of Supply Chain Solutions. These solutions range from supporting the Customer being more efficiently managing their 80% of lines, that make up 20% of value, or re-engineering from expensive Brands to more cost effective Component Manufacturers.
Another way to contrast the different value propositions of Hybrid/Independent Distribution & Traditional Franchised Distribution is to consider the fundamental differences between the two.
|Global Distributors Rebound|
|Focus Suppliers & Customers 100% Customer Centric|
|Origin North America (monolithic) Europe (Multi Cultural, Language, Currency, etc)|
|Ownership Public/Wall Street Private/Independent|
|Scale $bns (Behemoth) $100m’s (Scale with Speed & Sensitivity)|
|Flexibility/Speed Low/Slow? High/Fast….Bespoke Solutions|
|Empowerment Corporate/Low? Local/High|
Consequently, the Sourcing/Purchasing/Supply Chain Community have recognised that Hybrid/Independent Distributors such as Rebound Electronics are a key element in their Long Term Supply Base Strategy. From Shortage to Excess & Everything In between.
As we move into the second half of 2023 Customers are facing challenges from all perspectives. Many have Excess Inventory as Q2 saw a flood of deliveries after 2 years shortage. Rebounds Reverse Logistics Programme is there to help. After +2 years of focus on deliveries that has now swung to Price Reduction. Deeply understanding the cyclical nature of our Industry Rebound invested Time, Resources & Money years ahead of the last famine to even further expand its Global Network of Supply Partners. As a result this is now paying dividends in identify & delivering price savings for Customers.
Grant Fairbairn Vice President Sales & Purchasing commented:
“We love the cyclical nature of our Industry. The famine of the last +2 years has enabled Rebound to support 1000s of more Customers World-Wide.
Every change in the market gives us a great opportunity to demonstrate the value we can provide customers of every size, every segment, every country across the Globe.”