Author Topic: Texas Instruments axing distributprs  (Read 1466 times)

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Offline mikeselectricstuff

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Texas Instruments axing distributprs
« on: February 27, 2020, 09:19:03 am »
TI are axing existing distributors
From
http://www.ti.com/lit/ml/ssdl003/ssdl003.pdf
Quote
In the short term, there is no immediate change to the way customers do business with TI. In the long term, customers will continue to have the following options for doing business with TI:
•Directly with TI.
•Through Arrow, as an authorized TI distributor in all regions, with the exception of Japan.
•Through Macnica or TED, who will continue to be authorized TI distributors in Japan.
•Customers who prefer to purchase TI products online for immediate shipment may continue to do so through the TI store, or through DigiKey or Mouser

Interesting that Farnell ( Avnet) aren't on that list..

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Offline imo

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Re: Texas Instruments axing distributprs
« Reply #1 on: February 27, 2020, 09:27:18 am »
And more manufacturers will follow soon, I bet..
 

Offline mikeselectricstuff

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Re: Texas Instruments axing distributprs
« Reply #2 on: February 27, 2020, 09:40:05 am »
I'm surprised that more manufacturers haven't moved to a direct supply model ( plus DK/Mouser).
I've never really understood what value most of the larger distributors add.
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Offline BravoV

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Re: Texas Instruments axing distributprs
« Reply #3 on: February 27, 2020, 09:41:15 am »
I have been wondering about cutting the middlemen for years, as online transaction with end customer directly is just painless nowadays, I guess this is it.

Curious how much "margin" will these yield at the end of fiscal years.

Offline imo

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Re: Texas Instruments axing distributprs
« Reply #4 on: February 27, 2020, 09:46:25 am »
They claim pretty often they offer "FAE"-like support, but mostly their know a little except pointing you on the datasheet and their price list. And neither a customer nor a manufacturer could be happy while reading their price lists.. Some manufacturers (ie FPGA manufacturers I was told) are struggling with them for a decade  ::)
« Last Edit: February 27, 2020, 09:49:55 am by imo »
 

Offline daqq

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Re: Texas Instruments axing distributprs
« Reply #5 on: February 27, 2020, 09:54:19 am »
Great. I like using farnell, the shipping is OK and they have lots in stock. I'm guessing that direct shipping from TI will cost something fierce?
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Offline CJay

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Re: Texas Instruments axing distributprs
« Reply #6 on: February 27, 2020, 10:05:18 am »
TI are axing existing distributors
From
http://www.ti.com/lit/ml/ssdl003/ssdl003.pdf
Quote
In the short term, there is no immediate change to the way customers do business with TI. In the long term, customers will continue to have the following options for doing business with TI:
•Directly with TI.
•Through Arrow, as an authorized TI distributor in all regions, with the exception of Japan.
•Through Macnica or TED, who will continue to be authorized TI distributors in Japan.
•Customers who prefer to purchase TI products online for immediate shipment may continue to do so through the TI store, or through DigiKey or Mouser

Interesting that Farnell ( Avnet) aren't on that list..

The full text suggests that there's an issue with counterfeit parts in the supply chain, would you read it as "some disties have been selling grey market/counterfeit parts"?
 

Online nctnico

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Re: Texas Instruments axing distributprs
« Reply #7 on: February 27, 2020, 10:54:58 am »
TI are axing existing distributors
From
http://www.ti.com/lit/ml/ssdl003/ssdl003.pdf
Quote
In the short term, there is no immediate change to the way customers do business with TI. In the long term, customers will continue to have the following options for doing business with TI:
•Directly with TI.
•Through Arrow, as an authorized TI distributor in all regions, with the exception of Japan.
•Through Macnica or TED, who will continue to be authorized TI distributors in Japan.
•Customers who prefer to purchase TI products online for immediate shipment may continue to do so through the TI store, or through DigiKey or Mouser
Interesting that Farnell ( Avnet) aren't on that list..
And RS Components. Not saying Digikey and Mouser are bad but over here Farnell and RS are (about) the only ones offering next day delivery.
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Online filssavi

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Re: Texas Instruments axing distributprs
« Reply #8 on: February 27, 2020, 11:21:27 am »
I have been wondering about cutting the middlemen for years, as online transaction with end customer directly is just painless nowadays, I guess this is it.

Curious how much "margin" will these yield at the end of fiscal years.

For research the distributors are very important since the procurement office is usually barely functional and there is huge amount of red tape and paper to produce with each order, if now instead of doing a single order I have to do 5/6 for each board with each manufacturer it multiplies the amount of useless stuff I have to do by 5

And thus reduces greatly the chance I will design a part in
 
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Offline jpanhalt

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Re: Texas Instruments axing distributprs
« Reply #9 on: February 27, 2020, 12:06:39 pm »
Agree fully with filssavi.

TI is trading an increased profit margin for small-quantity buyers with customer satisfaction.  I have no problem with sales to large-volume buyers though a single distributor or directly.  Everybody does that.  It is hard to believe that small-volume buyers make that much difference to TI's bottom line, but they do contribute to the popularity of TI's products.

The importance of being able to get everything I need for a project from one supplier and paying just one shipping cost (if any) should not be underestimated.  Moreover, I doubt TI will meet the same shipping timelines as DK and Mouser do.   I have checked Arrow on occasion.  It is big and prices are competitive, but I could not fill my entire order from it.   

As one small example, I am presently considering whether to use the TI BQ24090/2 family or the Microchip MCP73833/4 battery management chips.  They are virtually identical.  Availability and user experience become important in that choice.  My little purchase won't make any difference to either company, but my experience with TI will make a difference for future purchases.
 

Offline jeremy

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Re: Texas Instruments axing distributprs
« Reply #10 on: February 27, 2020, 12:15:04 pm »
Some manufacturers (ie FPGA manufacturers I was told) are struggling with them for a decade  ::)

Today I looked up the most expensive FPGA on digikey; it was $177 000 AUD (roughly). I looked for the same part number on element14 and it was $88 000 AUD.  :-//
 

Offline jeremy

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Re: Texas Instruments axing distributprs
« Reply #11 on: February 27, 2020, 12:22:24 pm »
Moreover, I doubt TI will meet the same shipping timelines as DK and Mouser do.

I purchased some ICs direct from TI a few years ago because they were cheaper than digikey. It was maybe 30pcs or so, and I was getting some dev boards from TI anyway so I figured I might as well add them to the list. They arrived in identical packaging to Digikey, except that there were no digikey logos or digikey part numbers anywhere; they weren’t scribbled out or anything, there was just blank space where they should be. But the complicated label on the anti static bag with the various barcodes was almost certainly using the same digikey label generator.

So maybe digikey is providing a drop ship service for TI, and they are just subsidising the cost?
 

Online rdl

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Re: Texas Instruments axing distributprs
« Reply #12 on: February 27, 2020, 02:31:40 pm »
The last thing I bought from the TI store (a book) was shipped from Thief River Falls, MN

Previous experiences with buying from the TI store were not exactly what I would call customer friendly, but that's going back quite a ways. Hopefully they've gotten better with more experience.
 
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Offline coppice

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Re: Texas Instruments axing distributprs
« Reply #13 on: February 27, 2020, 02:53:36 pm »
I'm surprised that more manufacturers haven't moved to a direct supply model ( plus DK/Mouser).
I've never really understood what value most of the larger distributors add.
The value of a distributor varies a lot with the country. In some places they do little more than fullfillment. In some they offer a lot more coverage than a small vendor could realistically offer. In some they offer considerable FAE support, although that's mostly for big customers. In some they act as bank and debt collector, where its a slow and difficult process to get payment from customers.
 

Offline donotdespisethesnake

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Re: Texas Instruments axing distributprs
« Reply #14 on: February 27, 2020, 04:30:05 pm »
Is TI run by morons? No more TI parts for me...!

I looked on RS UK site and all TI parts appear to be flagged:

Quote
Due to temporarily constrained supply, RS is unable to accept backorders at this time

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Offline angrybird

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Re: Texas Instruments axing distributprs
« Reply #15 on: February 27, 2020, 08:51:05 pm »
This isn't surprising.  The semiconductor market is not in the greatest shape and if the disty can't add enough value, it no longer makes financial sense for the manufacturer to do business with them.  Once exception will always be Japan, here the disty is required by law and that's not likely to change.  The disty are basically mafia there, it's kind of funny.  You go to visit a Japanese company and it's you/your people and the company representatives doing all the talking, but there are these couple guys with laptops just sitting there and typing...  Not really contributing anything... Probably won't send you any notes after the meeting... But their presence is required by law!

It is true that the disty is adding value by saving customers time when they processing paperwork and submit orders to multiple vendors for a single order, but this is not really a value add for the manfacturer.  A majority of most semiconductor companies' revenue comes from large volume purchases, large enough that the purchaser isn't really worried about this paperwork.  Sucks for the little guy, but hey, if you don't like it, work hard and be a bigger fish.  Otherwise don't complain because it is what it is.

The value add for the semiconductor manufacturer is when the disty is actually knowledgeable on the parts they can offer and find new opportunities, customers, and projects for the manufacturer.  This also is an opportunity for the manufacturer to get intel on new product opportunities and ideas.  IMHO many of the disty's have failed miserably on this in the past decade or so and this change was due a long time ago.  This has caused some manufacturers to work out deals where if the volume is greater than X, the opportunity is removed from the disty and pulled internal, removing the disty margin.  They have not been happy about deals like this but didn't really have a choice but to comply.  They have been fighting tooth and nail to just keep what they have.

I would bet that there was a bidding war on disty margin, lowest bidder takes all, and Arrow won?

I'd expect decisions like this from other semiconductor companies as well, especially ones which sell a lot of differentiated(i.e., not commoditized) type products in the market.

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Offline igendel

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Re: Texas Instruments axing distributprs
« Reply #16 on: February 27, 2020, 09:09:30 pm »
So, if I'm on Digikey or Mouser, searching by parameters for an opamp or something, no TI options will come up and be available? What an interesting business decision  :palm:
[Edit: No, these two will still carry TI]
« Last Edit: February 27, 2020, 09:20:35 pm by igendel »
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Offline jeremy

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Re: Texas Instruments axing distributprs
« Reply #17 on: February 27, 2020, 09:16:20 pm »
So, if I'm on Digikey or Mouser, searching by parameters for an opamp or something, no TI options will come up and be available? What an interesting business decision  :palm:

I think you misunderstood, digikey and mouser will be the same as they always were. It’s other distributors that you will have problems with.
 
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Offline igendel

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Re: Texas Instruments axing distributprs
« Reply #18 on: February 27, 2020, 09:19:17 pm »
So, if I'm on Digikey or Mouser, searching by parameters for an opamp or something, no TI options will come up and be available? What an interesting business decision  :palm:

I think you misunderstood, digikey and mouser will be the same as they always were. It’s other distributors that you will have problems with.

Right! I missed the last point in their announcement...
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Offline olkipukki

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Re: Texas Instruments axing distributprs
« Reply #19 on: February 27, 2020, 09:47:24 pm »
Quote
•Customers who prefer to purchase TI products online for immediate shipment may continue to do so through the TI store, or through DigiKey or Mouser

I have really positive experience dealing with TI directly, there a lot of improvements done since they introduced their store.
Actually, TI was one of the first who allows to use PayPal.

The prices usually better than DigiKey/Mouser, especially in 1000+ qty you very likely will pay 15-25% less.

The support is based in Germany and quite responsive, and shipping from US (into EU) goes through NL, so less admin paperwork.

Unfortunately, USD currency only.


P.S.
I wish Maxim Integrated :rant: learn from TI!
« Last Edit: February 27, 2020, 09:49:48 pm by olkipukki »
 
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Offline PTR_1275

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Re: Texas Instruments axing distributprs
« Reply #20 on: February 28, 2020, 12:44:25 am »
Like others have said about TI online sales and Digi-Key.

I needed some TI parts that was going to put on a Digi-Key order. None in stock. Ok, TI online had some so I put my Digi-Key order in, put my TI order in and went on with my life.

Noticed a few days later that both parcels were coming from Thief River Falls. Coincidence, I think not.

Ti parts had the same bags, same labels (with some Digi-Key things missing). Quite the pissoff that I had to pay shipping on the TI parts that clearly came from the Digi-Key warehouse the same day that my Digi-Key order with free shipping left.

There must be some under the table stuff going between Ti and Digi-Key.
 

Offline jeremy

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Re: Texas Instruments axing distributprs
« Reply #21 on: February 28, 2020, 12:49:29 am »
I don't claim to have any knowledge of the situation, but obviously with digikey you are paying the cost of shipping in the markups. So maybe TI has the alternate model where you pay for shipping but the margin is lower? And I think it's pretty clear that TI (or digikey) don't want to advertise that digikey was actually the supplier all along.
 
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Offline rsjsouza

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Re: Texas Instruments axing distributprs
« Reply #22 on: February 28, 2020, 01:02:58 am »
I received this message as well, but it was a bit weird as it is old news:

https://www.eenewspower.com/news/avnet-loses-tis-19bn-distribution-business-update
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Offline Someone

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Re: Texas Instruments axing distributprs
« Reply #23 on: February 28, 2020, 11:25:42 am »
Ti parts had the same bags, same labels (with some Digi-Key things missing). Quite the pissoff that I had to pay shipping on the TI parts that clearly came from the Digi-Key warehouse the same day that my Digi-Key order with free shipping left.

There must be some under the table stuff going between Ti and Digi-Key.
Digikey have been doing the fulfilment for TI samples and direct orders for quite some time. I wonder if TI hold back a certain minimum stock for their exclusive uses? Certainly annoying in your case.
 
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Online Ice-Tea

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Re: Texas Instruments axing distributprs
« Reply #24 on: February 28, 2020, 11:31:04 am »
And RS Components. Not saying Digikey and Mouser are bad but over here Farnell and RS are (about) the only ones offering next day delivery.

Drove up to their warehouse in Luik a few times for "same day deliver" (pickup).

Those were not good times :c


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