[Source: "High-tech LED - Research and Review" July issue Zhang Yashu]
The LED industry is maturing, and the importance of distributors as a link between upstream and downstream industries is self-evident in the industry chain. Future Electronics has become a leader among distributors with its unique business model, precisely because it has found its best position in the industry.
“Our philosophy is to prepare the goods first, waiting for others to buy them, unlike traditional dealers waiting for customers to place orders, and then placing orders with manufacturers.†Chen Haoquan, vice president of Asia Pacific, Future Electronics Summarize the business philosophy of Fuchang Electronics.
Founded in 1968, Fuchang Electronics, headquartered in Montpellier, Canada, is currently one of the world's three major electronic component distributors; 12 years ago was the first company to represent Philips LED electronic components, 5 years ago Shenzhen Electronic Technology Building has set up an office. After years of equipment, technology research and development, and channel sales talents in the LED field, it has become a global LED lighting solution provider.
Create an inventory management advantage
Seeing ordering is a common mode in the supply chain system. After all, stocking is risk-taking; however, Fuchang Electronics will stock up as a differentiated advantage.
It is understood that Fuchang Electronics' business model guarantees 99.5% on-time delivery and continuous supply, and can provide all solutions from concept to prototype to production. Chen Haoquan said: "It is a very important advantage for us to fully and efficiently stock our customers. When other companies are backing up the stock, we dare to put the products into stock. Because we have a large customer base and sales channels around the world, if the customers are in market demand Fluctuating and canceling orders that have been stocked, we can sell the spot immediately through multiple channels, thus controlling our inventory risk."
Of course, to achieve this model, at least have the advantages of global resources and strong financial strength.
Chen Haoquan revealed to Gaogong LED that Fuchang Electronics has strong assets and its boss is well-known on the Forbes billionaire list, so the company does not need to go public to raise funds and share the benefits. The model of privately held companies determines that Fuchang can use inventory as a strategic asset rather than a debt on the financial statements, so that it can more easily grasp its own rhythm. When the market is inevitably impacted by external influences such as natural disasters, changes in demand, and capacity shortages, customers can be supported in a timely manner.
However, Fuchang's stocking service is only for VIP customers, only key customers can provide strategic cooperative business solutions, giving the industry the most favorable terms of cooperation. Chen Yuquan believes that only obeying the 28th law in business can bring greater value to the enterprise. That is, 80% of business revenue is created by 20% of customers, and 80% of sales are from 20% of goods. Large customers can support Fuchang's output and keep its inventory rolling. “50% of the products are for large customers, and they can be flat and do not make money; the other 50% are sold to individual customers at different prices.â€
In addition to stocking, Future Electronics uses an advanced warehousing system and distribution system. The distribution network covers 170 regions in 42 countries around the world and has 100% ownership and operation rights to all branches. There are three fully automated warehouses in the world, Singapore in the Asia Pacific region, Memphis in North America, and Leipzig in Germany. This location is conducive to ensuring uninterrupted cargo within 24 hours. Future Electronics' global internal operating mechanism is the same. It has a global operating system that can enjoy the same service quality no matter which new region the customer enters. Really fulfilled the promise of "ThinkGlobal, Go Local".
Mutual benefit and win-win with customers
Fuchang Electronics has been the exclusive global distributor of Philips Lumileds for more than ten years. And in June 2011, Philips Lumileds and Fuchang Electronics signed a cooperation extension agreement for an extension of five years.
Steve Barlow, senior vice president of sales and marketing for Philips Lumi leds, said at the signing ceremony: "In the past 10 years, Fuchang Electronics LED Lighting Division has proved that its precise positioning can be the distribution and advanced of LUXEON series LED products. LED engineers' training and the core components required for LED solutions provide services, and they also have the ability to help more companies that want to enter the solid-state lighting industry."
Fuchang Electronics' LED Lighting Division (FutureLighting Solutions) is a division of Future Electronics. In addition to ensuring the supply of LED products, it also provides turnkey solutions from LED replacement lamps to LED system engineering.
Through the LED solution, Fuchang Lighting has truly achieved “simple LED lightingâ€, with the aim of getting customers' products to market as soon as possible. For example, Chen Haoquan said that the development of Fuchang's “Simple LED program†project allows customers to choose more than 500 LUXEON LED combinations and optical engine configurations, eliminating prototyping delays and shortening time to market.
Years of cooperation have made Fuchang Electronics and Lumileds tacit. Chen Haoquan ridiculed that compared with other original manufacturers looking for a number of distributors, Fuchang Electronics is the "only child" of Lumileds, and all the goods produced by Lumileds are placed directly in the warehouse of Fuchang. Stocking, Min, etc. are all work of Fuchang. Lumileds' direct customers are only a few international companies, and the rest are Fuchang Electronics customers. The two each have different advantages. Lumileds focuses on R&D and researches and develops new LED products from the technical field; Fuchang actively develops LED application software technology and focuses on channel sales and logistics management. He added: "In short, Lumileds is good at making products, and Fuchang is good at selling good products."
Mentioning Chinese companies to imitate the products of P hilip sL umileds, Chen Yiquan said that Lumileds and Fuchang Electronics also know that some manufacturers imitate the packaging of LUXEON Rebel, but they are not worried. He pointed out that even if it is imitated, it is only an appearance, and it is impossible to imitate the essence. LUXEON Rebe from the inside of the core wafer, the crystal master in the process of crystal growth, these essences need time and money to support.
At present, Fuchang Electronics' partners in the LED field include Lumileds, including NXP, Mingwei, Infineon, ROAL (Italian manufacturer), Intermec, Oree and so on. Fuchang not only sells products to customers, but also purchases various products with customers.
Chen Yuquan said that Fuchang Electronics strives to become a Super Market, and only with the rich product line can it be more competitive. In the field of LEDs, Fuchang Electronics' competitors are mainly several LED manufacturers, but the expertise of these large manufacturers is not good at handling the design and manufacture of devices, such as lending, stocking, technical support and logistics operations. And the distributors are just specializing in this, and the existence of distributors is a reasonable division of labor in the industry chain.
In addition to LEDs, Fuchang also has a wide range of products and services including lens, drive, IC, optical and thermal solutions, power driver modules, power drive ICs, light engine modules, lighting control systems and remote phosphor technology. "If you are a customer, do you buy things with 80 people, or do you buy things with 2 people?" Chen Yuquan expressed the advantages of Fuchang as a distributor.
Our screening partners do not simply look at each other's turnover, but also what services the other party can provide for us. The premise must be to recognize our strategy and have the potential to become a strategic customer. For example, he said that many packaging factories use polycrystalline packaging, which brings a problem to heat dissipation. So when customers can provide a very effective blast-type active cooling solution, we are very happy to be with each other. Cooperation.
There is also lighting control as another way to increase energy efficiency. Future Electronics LED Lighting Division has partnered with Synapse Wireless to develop an Intelligent Lighting Platform (ILP). With this platform, lighting fixtures can be controlled wirelessly anywhere, anytime.
He also revealed that not long ago, Future Electronics signed a global distribution agreement with Oree, a developer of solid-state lighting planar light source. “Oree LightCellTM is an innovative light source that is a thin, flat and uniform solid-state light source that illuminates the area. 50x50mm for decorative and architectural lighting applications. LightCell is the world's first planar lighting solution with proven solid-state lighting technology and optical packaging that addresses the conflict between thickness, uniformity and efficiency.
For the products launched by Fuchang in the past two years, some supporting services may be needed, so Fuchang has been looking for a wide and deep cooperation with service providers.
Dongguan Fangbei Electronic Co.,Ltd , https://www.connectorfb.com