Shaping the Procurement Future
Key Insights from Buyers
Executive Summary
This survey offers a comprehensive analysis of the attitudes and purchasing strategies of buyers in the electronic components market who utilise eCommerce platforms. Respondents are categorised based on the primary purpose of their purchases—whether for maintenance, research and development (R&D), or production—as well as by company size. This segmentation provides valuable insights into how varying organisational needs influence buying behaviour.
The research reveals several key insights into what matters the most to today’s B2B buyers, including:
- The high level of autonomy that buyers enjoy indicates a shift toward more self-directed procurement processes.
- The limited use of automation in purchasing workflows suggests significant opportunities for increased efficiency through technology adoption.
- Respondents emphasised the critical importance of price and product availability as primary factors influencing their choice of distributors, highlighting the competitive nature of the market.
The research is based on a sample of 941 buyers from across Europe, representing a diverse range of industries and company sizes. The survey was conducted between May and July 2024, ensuring that the findings align with current market dynamics.
This enables benchmarking of purchasing processes by revealing the current state of eCommerce buying in the electronic components sector. It also serves as a valuable resource for suppliers and channel partners who aim to align their strategies with buyer expectations and emerging trends.
Price and Availability: Key Factors in Distributor Choice
The survey underscores the importance of price and availability in distributor selection. Buyers prioritise affordability and reliable access to components, making cost-effectiveness and stock levels critical competitive advantages. While the survey was conducted during a period of supply chain challenges, the findings suggest that distributors who maintain strong inventory and competitive pricing will always stand out.
Buyers Shop Around for the Best Deals
Comparison shopping is widespread, with 59% of buyers requesting quotes from three or more distributors before making a purchase. In contrast, only 10% rely on a single quote, highlighting that brand loyalty is rare unless a distributor consistently delivers the best pricing and availability.
Purchasers Control Distributor Selection
Purchasers have considerable autonomy in selecting distributors, revealing the diverse approval processes in companies of various sizes. This highlights the decentralised nature of procurement, particularly in smaller organisations, and points to areas for potential standardisation and efficiency.
Purchaser Autonomy in Distributor Selection
Most purchasing decisions are made by the buyers themselves, with 65% of companies allowing personal discretion. Only 18% of buyers are required to use an approved supplier list, indicating that strict procurement guidelines are uncommon.
Engineers influence distributor selection in just 11% of companies, despite defining technical requirements and choosing components. Small company owners are involved in vendor selection in only 2% of cases, reflecting a trend toward delegating purchasing responsibilities.
Buyers' Biggest Hurdles: Availability, Price, and Beyond
The survey was conducted during a period when the availability of electronic components was restricted, making it difficult to source many products or place them on allocation. It highlights the significant challenges buyers faced during a time of severe supply chain disruption, revealing both immediate and systemic issues in the procurement of electronic components.
Product Availability: The Biggest Challenge
Over half of the respondents cited product availability as the primary challenge, largely due to a global shortage of electronic components. This scarcity led to allocation issues and delays, forcing buyers to navigate production and maintenance difficulties. Suppliers with stock took advantage of the situation by raising prices, further complicating buyers' struggles. As supply chains stabilise, pricing and efficiency challenges are expected to become more significant.
Pricing Pressures
Price emerged as the second largest challenge, with 21% of respondents identifying it as their top concern. Buyers faced financial strain due to inflated costs amid high demand and low supply, with suppliers possibly increasing prices because of limited inventory. While availability might improve, pricing challenges could persist, especially if inflation continues.