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Abstract
Although the concept of integrated supply is alive and well in electronics distribution, it is not called by that name. Most resellers offer a wide range of value-added services designed to reduce costs. An electronics distributor might team up with an electrical and an MRO distributor to supply a customer everything he or she needs. An extreme example of how distributors partner with an OEM customer is the single enterprise business model used by Cisco Systems. Cisco makes internetworking equipment and buys most of its electronics through 2 major distributors - Hamilton-Hallmark and Arrow. Value added services to Cisco include IC programming and kitting, as well as commodity and logistics management. Distributors handle the tactical buying for Cisco. Right now, the single enterprise model is rare, but major distributors and OEMs are looking at it very closely, and more OEMs will use it.