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Dialing for Orders

Parts ordering is easy over the web, but many engineers still prefer to pick up the phone

Rob Spiegel -- Design News, August 18, 2003

Catalog distributors are working hard to make it easy for engineers to order electronic components online. But many engineers aren't buying it. Well at least not online.

The percentage of orders actually placed over the web does vary—anywhere from 10 to 40%, depending on the distributor. But overall, the number of engineers who order online isn't what one would expect, given the level of effort electronic catalog companies like Digi-Key, Mouser, and Newark InOne have put into making the website experience better.

Many websites, for example, offer parametric search capabilities that allow engineers to search for parts by function. They also provide information on stock availability and order status. And, of course, one of the greatest strengths of a website is that it can feature the most updated pricing and product information possible.

Many engineers routinely take advantage of these website features. Then they pick up the phone to call in their order.

Don't blame this phenomenon on payment policies. Electronics distributors say that payment options are generally the same, whether an order is placed online or over the phone. Engineers either purchase on account, or use what's called a pro card (for procurement card), a kind of credit card issued by their companies that lets them make purchases up to a certain dollar amount without an approval.

The answer simply may be that design engineers love their print catalogs—or more specifically, their account reps. "I read catalogs like other people read romance novels," explains Newark InOne customer Randy Coffey, a design technician who builds design prototypes at the Boeing Co. "I flip through the catalog in my spare time. I even take it to the kids' sports and music practice. I use it to build an inventory of products in my mind." Though Coffey loves his paper catalog, he also checks Newark InOne's website for parts availability. Then, when it comes to placing his order, he picks up the phone and calls his account rep, Debbie.

Many catalog customers seem to like the personal contact of a long-term account manager. These account managers often act as a consultant for buyers who want to discuss product capabilities and lifecycle information, and sometimes even negotiate pricing. "A lot of customers like the personal contact on the phone," says Rob Birse, director of marketing communications at Allied Electronics, Inc.

Nonethless, catalog distributors report that the number of orders placed online continues to grow, and they note that web usage for checking orders and stock status continues is up. They point to a buying pattern where customers use the website to check availability and pricing, then pick up the phone to order. "They'll check price and inventory. They'll check the lead time on backordered inventory," says Tony Chien, VP of Electronic Commerce at Newark InOne. "So when they call, they'll say, 'I know you have this in stock.'"

Web features keep accumulating

And web-based catalogs just keep getting better and better, now offering many features that print catalogs can't match. "Customers can keep as many BOMs (bill of materials) as they need, and they can get updates, delivery information and stock status of each part," says Glenn Smith, president of Mouser Electronics. Print catalogs also can't match a website for current products and prices.

"The web allows us to provide services such as e-mail confirmation, e-mail ship notice and tracking numbers," explains Newark's Chien. "We can do things on the web that we can't do over the phone."

"We send e-mail notifications whether you order on the web or over the phone," says Mouser's Smith. "There is no reason to separate the services. 99% of our customers want e-mail confirmation as well as online tracking."

As it seeks to encourage more customers to order online, Digi-Key says that customer input is essential in deciding what improvements to make. "Each week we circulate e-mail comments from our customers to the staff. From this list, we prioritize what we should do to improve the website experience. Right now we are paying a lot of attention to speed and navigation," says Steve Tsukichi, VP of marketing at Digi-Key.

Tsukichi says that it is a process of incremental improvements, rather than a major overhaul. "Improving the website is like eating an elephant - you do it one bite at a time," explains Tsukichi. "We're in the process of creating a master product database, which will improve our customers' ability to access product information quickly and easily."

In what may be considered a bold move at this point, one major electronics retailer has done away with its print catalog altogether. Back in early 2002, Radio Shack Corp. quit producing its paper catalog for cost reasons. "It's cost prohibitive for a retailer, and our pricing and product lines change too frequently for a paper catalog to be effective," says Charles Hodges, senior media relations manager at Radio Shack.

It's not likely any non-retail distributors will follow suit anytime soon. In fact, they are finding that they are printing more catalogs than ever. Both print runs and frequency are on the rise. Mouser believes it's printing more catalogs because its website has attracted new buyers who like both the web and print.

And then there remains the dead-tree holdouts: In an e-mail note to Newark InOne, Boeing's Coffey pleaded, "Don't make the same mistake as Radio Shack did by dumping its paper catalog!"

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