Ecmweb 17114 Electrical Products Service Pr 0
Ecmweb 17114 Electrical Products Service Pr 0
Ecmweb 17114 Electrical Products Service Pr 0
Ecmweb 17114 Electrical Products Service Pr 0
Ecmweb 17114 Electrical Products Service Pr 0

Product Sourcing and Supply

Nov. 20, 2017
Trends in electrical product sourcing and supply practices

I like to shop around a bit before I buy a new product. I might hit a few different stores to compare features and prices. I also search the Internet to do the same. When I make the final purchase, I want to feel like I got a good deal.

For the most part, this process works well for me. Most of the time I’m satisfied with the product’s quality, and I typically pick it up for a good price. But, on occasion, I get burned when I chase a low-priced item from a source I haven’t done business with before. This is where I’ve experienced problems with delayed shipping, poor customer service, unfriendly return policies, and limited warranty periods. It’s at this point I have to remind myself that focusing on “low price” alone comes with some risks.

This same scenario also plays out in the business world, but on a much larger scale. As a business owner, you’re purchasing hundreds or thousands of items at a time rather than one or two. These products must meet specific standards, be delivered on time to the right location, and perform as expected. But you face far greater risks than I do if you decide to chase down low-priced items through unfamiliar sources of supply and something goes wrong. You could easily damage your company’s reputation with one bad decision.

This is why the electrical wholesale/distribution channel remains such a viable component of our industry. The benefits of working with a trusted supply house are numerous. Good service, familiarity with product lines, and longevity are the qualities that separate these companies from some of the new untested online suppliers. The service you receive from these companies is quite valuable, which justifies paying a small premium on your purchases.

That’s not to say there aren’t constant pressures in place to test these relationships. As you continue to face rising labor costs and tighter project timelines, you’re being forced to think about new options on the products component of your job.

One alternative to beating on the supplier for lower prices is to partner with them, and allow them to manage materials logistics on your projects. This new way of thinking has taken hold in some parts of the country and is working well for both contractor and supplier. For a better understanding of how this type of partnership arrangement works, read this month’s cover story, “Products with a Side of Service,” written by freelance writer Tom Zind. The story might introduce you to a concept you’re not familiar with yet.

After you read it, I’d like to hear your thoughts. Do you think this arrangement might benefit your company? Would you be willing to test it out with one of your suppliers? If so, I’d really like to hear how it goes — good or bad.

About the Author

Michael Eby

Mike received a B.S. degree in electrical engineering in 1986 and an M.S. degree in engineering management in 1994 from the University of South Florida. He is currently a member of the National Fire Protection Association (NFPA), Institute of Electrical and Electronics Engineers (IEEE), Association of Energy Engineers (AEE), and American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE).

Prior to joining EC&M as Editor-in-Chief in September 1999, Mike served as the Executive Editor of Transmission & Distribution World magazine for five years. He currently serves as the Senior Director of Content - Buildings Group in the Infrastructure & Intelligence Division at Informa. Before joining Informa, Mike held various engineering titles within the Substation and Transmission Engineering Groups at Florida Power & Light Co., Juno Beach, FL.

Mike was awarded the Southeastern Electric Exchange (SEE) Excellence in Engineering Award in 1993 and has received numerous regional and national editorial awards for his reporting and writing work in the electrical market.

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