The evolution of technical distribution in the automation industry

The rate of technological progress in the automation and control industry shows no sign of slowing. Easier access to information and increased demand is commoditising products that not long ago required specialist knowledge to specify. Commoditised products have a broader route to market. So where does this leave technical distribution? The experts at Teeside Industrial Controls (TIC) explain.

Traditionally, the differentiator for technical distributors like TIC was in depth knowledge of products and their application. Engineers working with engineers. This is still the case but evolving to include leading edge technologies such as hardware agnostic control software, digitalisation, motion control and robotics.

Excellent customer service, first class logistics, broad product range, stock, competitive pricing, commercial and financial flexibility (it is always overlooked how big a role distribution plays in financing UK industry) are the foundations upon which a good distribution business is built. Adaptation has been essential, providing multiple touch points in which customers can interact. Internal technical sales desk, email ordering, (we still have a working fax machine), a fully functioned e-commerce website, optimised for mobile use, offering B2C functionality and service levels in the B2B space. And for TIC, our website was developed with integrated intelligence that learns from individual customer interactions to create a unique, efficient user experience.

Changing customer demands, particularly from OEMs and machine builders, brought about by sporadic build schedules, labour shortages and changing work patterns, have led to the development of additional services which takes technical distribution from component supplier to being an integral part of the supply chain, embedded into the manufacturing process. Vendor reduction, sole supply agreements, consolidated invoicing, product consolidation, consignment stock, vendor managed inventory and customer specific stock holding provide customers with significant commercial efficiencies.

Furthermore, the provision of additional services such as kitting, cut to length for rails, trunking and cable sets, junction box assembly, assembled terminal and components rails, enclosure modification, fully assembled back plates, pre-assembled control panels and wiring solutions can significantly reduce costs.

Being an independent business, competing with and thriving against national, multi-national and global businesses is something TIC is fiercely proud of. That independence allows easy adaptation and flexibility when customer needs change. Experience, financial stability and good governance allowed the business to successfully navigate the Covid pandemic and subsequent industry wide supply chain issues.

By its very nature technical distribution can never stand still. Adapt or perish! Evolve or die!