Issue link: https://iconnect007.uberflip.com/i/1067105
24 SMT007 MAGAZINE I JANUARY 2019 for the purchasing folks. Johnson: I think you've also answered our next question as well, as to whether this is affect- ing your major customers versus the smaller volume customers. Do you see Digi-Key taking any uniquely different steps for the smaller, more innovative design teams? Doherty: When I encountered that question, I chuckled to myself a little bit because we really don't distinguish between large and small customers. We tend to play in small- and medium-size quantities with all customers, so every customer is equally important. You can be the largest automotive or handheld devices company, and they typically use us for inno- vations or short-run productions just like the company where their entire production line is similar or maybe even less volume. Everything about our model, whether it's tech support or the pipeline of inventory, services that space regardless of customer size. One of the first things we did was cut back on some of the high-volume column breaks. We would prefer to have a large number of customers come to us to buy smaller numbers of quantity each versus some large OEM look for us because our model will not make up for the shortage constraints across the industry, or frankly, even across any single OEM or large CM. We want to continue to support that long tail of customers, typically more on the front end of their design or their unforeseen spot shortage that fits our model. We look at our in-stock rate and do everything we can to continue to keep that up. Again, the suppliers have been very supportive because they see two things. One, they want to support that design activity for their next-generation products. Two, they find it's an easy place if they have any additional upside. Let's say they were planning to produce 100,000 units and they get 102,000. For any of that upside capac- ity, they can put into one place and very easily channel it to Digi-Key. Then, we can expose it globally for them and try to reach that wide net of customers so it doesn't just get consumed by that one large OEM that's screaming for more product. We think we've been in a little better situation than most, and inside of that, we do some of the things we alluded to around content and parametrics to work with designers. There's no doubt this isn't a fun time for some of these individuals in trying to source and find products. However, we want to be that trusted partner still, and the one thing we do see is regardless of the constraints, our customers still want to go to authorized sources. Authenticity matters. They don't want to risk having a counterfeit product, and we'd like to think that's the other reason they come to Digi-Key first is they know and trust any and all of the product we have. That model will never change. It's all coming directly and only from manufacturers that we authorized. Johnson: What's the perspective at Digi-Key? What are the long-term parts of this shortage that we're going to be dealing with, and what are the blips? Doherty: For anything that's been more than six or seven quarters, I would say there's light at the end of the tunnel. I think the worst is behind us, although some would say there are