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What significance does automation technology have for DigiKey?

Eric Wendt, Director Industrial Automation at DigiKey

© DigiKey

Eric Wendt: It's the fastest growing part of our business. As more and more companies move into automation, we provide an excellent channel for their product launches.

In November, DigiKey took part in the SPS trade fair in Nuremberg for the first time. How was the response from visitors to your range of products and services?

It was better than we had expected. We had a great turnout and excellent feedback on some basic questions. Most people knew who we were, but many had no idea about our automation department.

Many people know DigiKey primarily as a distributor of electronic components. What expertise do you offer in the field of automation technology?

We still have the same philosophy that we've had for 50 years - getting products into the hands of customers. We use all the lessons we've learned over the years in the electronic components field and apply the best practices to the automation industry. The same skills that have helped us become the largest e-commerce distributor of electronic components are also applied to automation products. DigiKey is able to get automation products into the hands of customers in as little as 72 hours - anywhere in the world.

DigiKey has 400 automation and control technology suppliers in its portfolio, including those in its marketplace, and offers more than one million automation components worldwide.

So from individual components to systems, you can get everything from DigiKey?

At the moment we are concentrating on supplying our customers with first-class components such as PLCs and HMIs. We are not currently focusing on turnkey solutions such as SCADA systems or other complex systems. This is an area where machine builders and system integrators excel. We work closely with these types of customers in the industry by allowing them to utilize our inventory and wide range of products to develop their systems. DigiKey is constantly expanding its offering and adding new components to meet customer needs as the industry rapidly evolves.

DigiKey offers a network of system integrators. Why should a user use your platform to get in touch with a system integrator instead of contacting the system integrator directly? What role does DigiKey play in this service?

We offer these contacts as a service. It can help a customer find someone in their area or an expert in their industry.

The System Integrator Program offers many benefits to system integrators and their customers through a wide range of products, fast shipping and highly competitive pricing.

By joining the DigiKey System Integrator Network, partners are added to a directory where customers can search for a system integrator by industry, location and manufacturing partner. Participants in the program have control over content and can contribute to online blog posts and technical discussions. There is no cost to partners, the only agreement is a simple confidentiality and indemnification agreement.

Registered integrators also have access to competitive pricing, a self-service portal to place orders, shipping and inventory options, and other specialized tools.

DigiKey announced that direct shipments from European vendors to European customers are now available through DigiKey's Marketplace program. What are the benefits?

The benefit for our European customers is that we can include more suppliers in Europe who ship directly to customers in Europe. We can now offer products that we have not always been able to ship from North America, such as heavy machinery, automation equipment, lithium batteries, chemicals, adhesives and other items that are difficult to ship from North America due to regulations.

Another advantage for the customer is that they can do everything through the DigiKey purchasing platform. So on our website, they have access to all the products in our different categories and distribution channels. An order could come from five different suppliers in Europe, but everything happens within a single system. Customers can shop with a single shopping cart and DigiKey handles the payment transactions.

Other customer benefits when we think of Europe are the shorter transportation routes and delivery times. If you have a supplier in Germany who delivers to a customer in Germany, the goods can arrive there faster than from North America and shipping costs are reduced. In addition, the_{CO2 footprint} is reduced if a product is not first shipped to North America and then back to Europe.

Can only products or also development services be offered via the DigiKey marketplace?

We have a network of design and integration service providers who offer design, development, prototyping, manufacturing, automation control and system integration services on a fee-for-service basis, which are available to any visitor to our website. We also offer a range of free online design and development tools on our website. The DigiKey Marketplace is one service among many that we offer to our customers.

DigiKey is heavily involved in the field of automation technology. What growth potential do you see in this sector and how do you intend to tap into it?

The acceptance of automation will continue to grow, mainly because things are getting easier. In addition to our product offering, we are working with many suppliers to create more ready-made product packages that can solve a specific problem or meet a specific need.

What is on DigiKey's roadmap for this year?

We will continue to expand our range of tools and solutions while broadening the breadth of our portfolio.