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INTERNSHIP REPORT ON
WPG INDIA ELECTRONICS PVT LTD
Submitting in partial fulfilment of the requirements
for the Award of the Degree of
BACHELOR OF COMMERCE
By
MAGLIN.Y
21COMF15
Under the Guidance of
DR.P. KUMARASAMY
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
K. NARAYANPURA, KOTHANUR POST,
BANGALORE - 560077
2023 – 2024
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
CERTIFICATE FROM GUIDE
This is to certify that this internship work titled WPG INDIA ELECTRONICS PVT LTD is
based on an original project study conducted by MAGLIN.Y (21COMF15) of V semester
BCom under my guidance.
This internship work has not formed the basis for the award of any degree/ diploma by
Bangalore North University or any other university.
Place: Bangalore
Date: Name of the Guide:
Dr.P. Kumarasamy
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
CERTIFICATE FROM INSTITUTION
This is to certify that this internship work titled in WPG INDIA ELECTRONICS PVT LTD
is based on an original project study conducted by MAGLIN.Y (21COMF15) of V semester
BCom under the guidance of DR.P. Kumarasamy.
This internship work is based on original and has not formed the basis for the award of any
degree/diploma by Bangalore North University or any other University.
Head of the Department
Place: BANGALORE
Date:
DECLARATION FROM CANDIDATE
I MAGLIN.Y hereby declare that this internship work titled in WPG INDIA ELECTRONICS
PVT LTD is based on the original project conducted by me under the guidance of DR.P.
Kumarasamy.
This has not been submitted earlier for the award of any other degree/diploma from Bangalore
North University or any other University
This has not been submitted earlier for the award of any other degree/diploma from Bangalore
North University or any other University.
Place: BANGALORE
Date:
Student’s Name
MAGLIN.Y
Reg. No: 21COMF15
Table of Contents
Sl
No.
Chapter
No. Particulars Pages
1 1 Introduction 1-2
2 2 Industry Profile 3-16
3 3 3 C Analysis – Company, Customer,
Competitor
17-36
4 4 Organizational Structure/Departments
Profile
37-40
5 5 SWOT Analysis 41-46
6 6 Learning Outcomes 47-48
7 7 Conclusion 49
Total 49
1
CHAPTER 1
Introduction
I am Maglin.Y, studying 3rd
year at Kristu Jayanti College. I completed my internship at WPG
India Electronics Private Ltd from 14th
June to 17th
July 2023. My internship was on offline
mode and the company had a minimum of 30 to 40 employees.
As an intern at the WPG India Electronics Pvt Ltd, I gained knowledge about how the company
manages the incomes and expenses of the company. Observing and understanding the process
of preparing the financial statements. My mentor was Miss Kanchana who taught me a lot of
things about the company and on what basis does the company works.
Company industry belongs to distributing WPG Holdings Ltd (WPG Holdings) is an importer
and exporter of semiconductor and electronic components. The company distributes
interconnect, passive components, and computer and peripheral products. It also offers diodes,
audio and video amplifier or controller, smartphone chip, transistor, sensor, LED, LCD, ICs,
converters and memory devices.
WPG Holdings the global leading and the largest electronics distributor in Asia, headquarters
in Taipei, Taiwan. WPG is operating through four semiconductor components distributors
(WPIg, SACg, AITg, and YOSUNg) serves as a franchise partner for about 250 worldwide
suppliers. With 5,000 staff in 77 sales offices around the world, WPG achieved US$25.97
billion in 2022 revenue. WPG, the first holding company in semiconductor components
industry, has the global operation, local flexibility and long-term development in Asia-Pacific
Market. With our vision “the First Choice of Industry • the Benchmark of Distribution”, and
shared values “Teamwork, Integrity, Professionalism and Effectiveness”. We have been
awarded by “Outstanding International Branded Distributor Award” for 22
consecutive years. Under the new manufacturing trend, we are committed to transforming into
a Data-Driven enterprise and build an online digital platform - WPG DADAWANT. We are
positioned as a LaaS (Logistics as a Service) provider to advocate smart logistics and assist our
customers in facing the challenges of smart manufacturing. WPG expected to build trust with
technologies and build a co-opetition eco-system together with the industry through
2
“alliances”. Moreover, we proactively promote the digital transformation based on the
principle of “customer orientation, technology empowerment, collaborative ecosystem and era
co-creation”
Vision/Mission/Shared Values
Vision
• To Become the First Choice of Industry.
• To Become the Benchmark of Distribution.
Mission Statement
• At WPG Holdings, we serve our partners with delighted spirits to enhance valuable
• Long-lasting partnerships through “co-opetition” model.
Shared Values
Teamwork:
Accelerate integration of same function teams among companies and regions.
Prevail no prejudices in nationalities or regions, but balanced interests and fairness.
Integrity:
Upright and law-abiding operation
Enthusiastic services, no light promises and always walk the talk.
Transparent operating, be courage to admit mistakes and make corrections in time.
Professionalism:
To become the first choice of stakeholders including clients, vendors and shareholders.
To focus on core operation and implement strictly.
• Effectiveness:
Highlight on output, the quantity of capacity and balance of both.
Set quantifiable objectives, be strict on details, do execute, and fulfil tasks.
3
Chapter 2
Industry Profile
What is a distributor?
A distributor is an intermediary entity between a producer of a product, or manufacturer, and
a downstream entity in the distribution channel or supply chain. The downstream entity is
typically a retailer or value-added reseller (VAR), but it can also be a wholesaler.
The distributor is an integral supply chain component, acting as an intermediary between the
manufacturer and the downstream entity. The distributor bridges the gap between upstream and
downstream entities while adding important services that help smooth the distribution process.
A distributor typically works with multiple manufacturers and multiple downstream entities.
For each manufacturer, the distributor serves as an agent that enters into an agreement with the
manufacturer to sell its products to retailers, VARs or wholesalers.
4
Some of the confusion comes from the fact that a distributor performs some of the same
functions as a wholesaler. However, the distributor's responsibilities are generally much more
complex. In addition, the distributor takes a more active role with both the manufacturer and
retailer, such as handling payment and procurement. The distributor also takes on more
advanced capabilities. For example, manufacturers that lack the means to build out a channel
strategy often outsource that work to distributors.
Distributors also frequently take a more proactive approach in educating resellers about new
products by employing strategies such as presales training, roadshows or demos on behalf of
manufacturers. Distributors might also provide services around the procurement process,
including contract negotiation, marketing or product warranties. In contrast, wholesalers
primarily focus on buying products in large quantities, breaking them into smaller units and
selling them at profit.
Distribution vs. Logistics
Logistics refers to the careful planning and procedures required for efficient supply and
delivery of products. Supply management, bulk and shipping packaging, temperature control,
security, fleet management, delivery routing, shipment monitoring, and warehousing are just a
few examples of the activities and operations that fall under the category of logistics. The most
straightforward way to think of logistics is as physical distribution.
In logistics, order fulfilment through all distribution channels is the main goal of the
distribution management system. A product or service flows through a chain of agents and
organizations called a distribution channel as it travels from its point of origin to a consumer.
E-commerce sites, wholesalers, retailers, and third-party or independent distributors are a few
examples of distribution channels. Activities and procedures such as consumer- or business-
oriented distribution packaging, order fulfillment and order shipping.
5
Business Model
The business model for distributors is to buy products from a manufacturer at a low price and
sell it to retailers or end users at a higher price.
In order to maximize profit, the distributor must enter into supply agreements offering low
purchase prices for a high markup while focusing on operational efficiencies to keep costs low.
Challenges for Distributors
Distributors in the fitness and combat sports industry are facing a rapidly changing landscape
that presents unique challenges. With the rise of inventory management, e-commerce,
demanding customers, being environmentally sustainable and disintermediation, distributors
must adapt to these changes or risk being left behind.
Challenge #1: Inventory Management
Challenge #2: E-commerce Takeover
Challenge #3: Demanding Customers
Challenge #4: Disintermediation
6
Challenge #1: Inventory Management
Distributors must find a way to accurately forecast demand and manage their inventory levels
to avoid stockouts or overstocks, which can lead to lost sales and increased costs.
Overstocking can lead to increased warehousing costs, obsolescence, and the need for
markdowns to move excess inventory. On the other hand, understocking can lead to missed
sales opportunities, dissatisfied customers, and damage to the distributor's reputation.
The challenge is to maintain the right level of inventory to meet customer demand while
minimizing the costs of carrying inventory. To achieve this, distributors need to implement
efficient inventory management practices, including demand forecasting, inventory
optimization, and supply chain management.
These practices involve analysing sales data, monitoring product demand, and using
automation and data analytics tools to make informed inventory decisions. This system can
help distributors identify which products are selling well and which ones are not, allowing them
to adjust their inventory levels accordingly.
Overall, effective inventory management is crucial for modern distributors to remain
competitive and profitable in the ever-changing business landscape.
7
Challenge #2: E-commerce Takeover
According to The Future of Commerce, "Nearly 21% of distributors say e-commerce sales
account for 20% to 30% of total revenues, a trend that’s likely to continue and even expand."
Distributors are now competing with online retailers who can offer lower prices, wider
selection, and faster delivery. To stay competitive, distributors must adapt to the changing
landscape and find ways to provide value that e-commerce cannot.
One solution is to develop a strong online presence and e-commerce platform of their own. By
creating a user-friendly website and offering online purchasing options, distributors can
provide the convenience customers are looking for while retaining their customer base.
Additionally, distributors can use their brick-and-mortar stores as a competitive advantage by
offering services and experiences that e-commerce cannot, such as personalized customer
service, product demos, and in-store events.
Another solution is to form strategic partnerships with e-commerce retailers, using their
distribution networks to reach a wider audience. This can help to mitigate the competitive threat
of e-commerce while also opening up new business opportunities.
Ultimately, the key to success in the face of an e-commerce takeover is to stay flexible and
adaptable, constantly assessing the changing landscape and finding new ways to provide value
to customers.
8
Challenge #3: Demanding Customers
In today's highly competitive marketplace, customers have become more demanding, expecting
faster, more efficient, and more personalized services. This has created a significant challenge
for modern distributors who are struggling to keep up with the ever-increasing demands of their
customers.
With the rise of e-commerce giants such as Amazon and the prevalence of same-day delivery
options, customers have become accustomed to receiving their products quickly and efficiently.
This means that distributors must focus on delivering an exceptional customer experience that
meets and exceeds these expectations.
This includes providing a seamless online purchasing experience, offering fast and reliable
shipping options, providing excellent customer service, and offering personalized
recommendations and product offerings.
To meet these demands, modern distributors are turning to technology solutions such as
customer relationship management (CRM) software, order management systems, and e-
commerce platforms that allow them to streamline their operations, improve their logistics, and
better manage their inventory.
For distributors this means that they must find ways to reduce their environmental impact, such
as using eco-friendly materials in their products, optimizing their shipping processes to reduce
emissions, and implementing sustainable packaging practices.
By leveraging these technologies, distributors can provide a better customer experience while
also reducing costs and improving efficiency.
9
Challenge #4: Disintermediation
Disintermediation is the process of removing intermediaries between producers and
consumers.
To remain relevant, distributors must add value by offering specialized services, such as
assembly, installation, and maintenance which manufacturers may not be equipped to provide.
Disintermediation is a challenge facing modern distributors that occurs when customers buy
directly from manufacturers or suppliers, bypassing the traditional distribution channels. This
trend has been facilitated by advances in technology and the growth of e-commerce platforms.
As a result, distributors are facing increasing competition from both manufacturers and e-
commerce platforms, which can lead to a decrease in sales and revenue.
To counter this challenge, distributors must focus on building strong relationships with their
customers and adding value to the products they provide, as well as investing in their own e-
commerce capabilities to stay competitive.
You, as a distributor, must now aim to provide services that a manufacturer simply wouldn’t
be able to, such as VMI (Vendor Managed Inventory) tools which automate elements of
distribution, thereby saving the retailer valuable time and money.
Additionally, some distributors may need to reconsider their business models or product adapt
to the changing market landscape.
10
The 5 Ways to Grow Your Distribution Business
Following a formal plan will surely help you achieve the best in the business world. Here’s a
quick look at some of the key aspects that distributors should keep in mind to make the most
of the emerging opportunities and also fight odds that can end up becoming setbacks.
1. Pave the Road to Improving Customer Service
With trade and communication barriers faltering globally, the number of alternative supply
sources has kind of exploded. Adding to this is the increased cost pressure from low-cost
countries and strict margins in multiple distribution sectors. Responding to this, a growing
number of successful distributors are now offering a broad range of services to the
customers/clients. This has further helped the distributors increase their margin points
significantly.
Alternatively, there are several other ways through which distributors can look forward to
strengthen their customer relationships. For instance, a distributor from Midwest established
an online catalog tool that skillfully adapts for each customer based on the history of purchase.
Additionally, the online catalog tool also provides order status and real-time inventory. This
self-service online ordering tool and product information catalogue allows salesperson to spend
their time by finding a solution to critical customer issues, routing issues of lower level directly
to sales support and also paving the road to new and emerging opportunities.
Distribution business has greatly benefited through the advancement in technology as it ensures
improved visibility to sales management and strategic development of the sales force.
2. Ensure Better Management of Business Complexity
A number of distribution businesses today focus on performing daily routine activities without
any change or evolution in the process. Beginning the day with the same process and
performing repetitive tasks to managing sales and order flows has become a habit for the
salesperson of today.
Another issue that emerges in the distribution sector is that the businesses is adopting a
technology solution that cannot adapt to or seamlessly incorporate with supplier and customer
systems. With distribution companies growing through acquisition, corporate cultures,
connecting new branches, and logistics operations, sales processes often gets tough. With
11
businesses juggling a number of complex processes at the same time, employee productivity is
largely compromised.
Incorporating the right technology can help the distributors operate across several locations
thereby, allowing the sales team to address other business concerns and crucial business needs.
Tools that are especially designed for information sharing largely helps the distributors
improve communication and enhance visibility for the company. This further helps the
distributors to stay ahead of the competitors in the global market. What helps them achieve this
goal is fast, prompt, and responsive service against the odds of the changing market dynamics.
3. Encourage the Practice of Attracting Employees of High Value
The distribution business is a tough nut to crack. Therefore, the catch lies in retaining high-
value employees. Moreover, with technology making supply chain processes strict, talent will
over time emerge as the crucial factor for distributors. With the competition getting tough, you
cannot risk anything as your competitors in the field are surely focusing on training the next-
gen employees.
The three ‘Ps’ here are important as a number of distribution operations involve low adding
and repetitive activities like fulfilment, transaction processing, and logistics and warehouse
management. Distributors that can manage freeing their employees always ensure focusing on
high-value activities like resolving customer issues, strengthening relationship between
customer/vendor, and adapting to new solutions. All these further help the distributors to work
continuously on process improvement keeping in focus every aspect of business.
4. Keep Stock of Business Building Blocks
In today’s age where finding a lower price for a product/service is easy, world-class customer
service can act as the only differentiating factor. If your employees ever come across the feeling
of running actively just to keep pace with the daily sales volume, you must understand that
everybody else is too caught up in the process of business complexity, which further makes
you overlook tasks and other risk factors associated with the same. Being in the business, you
should take up every effort to hire motivated and productive employee who can assuringly help
you take your business to another level.
12
The three ‘P’s’ i.e. productivity, process, and profitability are the key determining factors of
professionally managed companies in any business sector. The catch lies in planning
strategically and executing the tasks purposefully to reach the next step of success level. The
most common denominator of success for distribution businesses rest with integrating the right
technologies and processes into the business at the right time. This allows the employees to
create or establish customer centric solutions that can actually take the business way beyond
what it is now.
5. Ensure Integrating Value-Adding Services
According to researches, it has also been noted that incorporating some value adding services
can help the distributors grow their business radically. Here’s a quick look at the aspects that
boost business growth or improve sales opportunities –
• Premiums & Incentives
• Graphics and Printing
• Merchandise Programs
• Packaging
• Fulfilment
• Direct Mail
• Event Management
Most of the distributors usually plan around things that have happened at least a year before,
which further helps adding a growth percentage according to the market indicators. The risk
that is persistent with this particular methodology is that as consolidation of industry continues,
incremental improvements in business is not just the thing that would help you to stay ahead
of competitors and gain an edge in the market. The fact is that sustainable growth can only be
achieved by adopting a strategic approach that allows the distributors to make use of available
technology for creating a niche in the global market.
Factors Influencing Choice of Distribution Channel –Nature of Product, Market, Size of
Business, Cost of Channel, Nature of Middlemen.
1. Nature of Product:
The nature of the product has a bearing on the choice of distribution channel. The
durability of the product, unit cost of product, type of product must be considered while
13
determining the distribution channel. Perishable goods like bread, milk are distributed
through short channels, while durable goods like television, refrigerator may be marketed
through long channels. Products that require specialized selling and technical skill need
short channel.
Products with lesser unit value and high turnover are distributed by employing longer
channels of distribution. Household products like utensils, cloth, cosmetics etc. are
distributed through longer channel while products like jewelry having high product value
are directly sold to the consumers by the jewelers.
2. Nature of Market:
The geographical width of the market, number of potential buyer, nature of competition
has a bearing on selection of distribution channel. In case of industrial markets where
number of buyers is less; a shorter channel of distribution can be adopted. These buyers
usually purchase directly from the manufacturers.
But in case of consumer markets, where there are a large number of buyers, a longer
channel of distribution is employed as distribution process cannot be effectively carried
out without the services of wholesalers and retailers. If the manufacturer wants to reach
customers who are concentrated at one particular place or market, distribution channel will
be short and the manufacturer can directly supply the goods in that area by opening his
own shops or sales depot.
While if the buyers are widely scattered, it is very difficult for the manufacturer to
establish a direct link with the consumers, hence services of wholesalers and retailers will
be used.
3. Size of Business:
The size of the business, financial strength of the concern determines the channel of
distribution. A small manufacturer may sell his product directly. While a large
manufacturer may use a longer distribution channel. If the manufacturer wants to control
the entire distribution process, it will prefer direct selling or adopt short distribution
channel.
14
4. Cost of Channel:
Distribution process involves cost of transportation, warehousing, storage insurance,
material handling, distribution personnel’s compensation and interest on inventory carried
at different selling points. Higher cost of distribution will result in the increased cost of
product. On the other hand, the services delivered by the distribution channel
intermediaries may be indispensable. Hence the marketer must carry out a cost benefit
analysis while selecting the distribution channel.
5. Nature of Middlemen:
The manufacturer must select those middlemen who provide the best marketing services
like storage, transportation, credit and packing etc. At the same time the middlemen should
ensure various services to customers. A manufacturer would like to appoint that
middlemen who assure greater sales volume.
In appointing middleman, the manufacturer must take into consideration the financial
stability and reputation of the middleman. A financially sound middleman can provide
credit facilities to customers and make prompt payment to the manufacturer.
6. Distribution Intensity:
The selection of distribution channel depends upon the intensity of distribution. If the
marketer intends to undertake extensive distribution will make his products available
through all distribution outlets, if the manufacturer intends to undertake selective
distribution will make products available through few selected outlets. If the manufacturer
intends to undertake exclusive distribution will make the products available thorough one
outlet.
7. Time of Distribution:
The selection of distribution channel depends upon time taken by the distribution channel.
The manufacturer needs to compare the time taken by different distribution channels and
should select the one that takes minimum time for delivery of goods to customers.
8. Government Policy:
Government policies and regulations also influence the choice of distribution channels.
The Government may impose certain restrictions on distribution of certain products like
wine, narcotic goods.
15
9. Competition:
The distribution channel used by the competitors determines the channel of distribution to
be adopted.
Five Effective ways to improve Distribution are:
• Offer value added services
Investors seek comfort in dealing with a single advisor for all their financial needs. Further, he
said that every financial product is an opportunity for MFDs to explore. MFDs must strive to
create a basket of products that can meet varying investor needs. Also, they should include
other solutions like tax planning and estate planning through strategic tie-ups.
• Professional set-up
MFDs must have complete control over their business and should focus on offering solutions
rather than products.
Having an office address, a team and a mentor are a few tips here. Given the existence of
multiple other players in the market, a professional set-up brings MFDs to the same space
which is otherwise mainly dominated by bigger players.
• Business succession
MFDs must communicate their succession plans to their clients from the very first day. Ideally,
MFDs must involve their family members in the business. However, in case their family is not
keen to join, they can plan their succession strategically with other like-minded and trustworthy
distributors or employees.
• Make investing experience seamless
With the advent of technology, client expectations have increased further. They seek prompt
replies and quicker services. MFDs should leverage technology and create a seamless investing
experience. Apart from online transactions, the focus must be on offering easy solutions like
single click account summaries, easy to consume content, referrals messages allowing clients
to refer an MFD (like other mobile apps) and so on.
16
• Staying in touch with clients
Newsletters, articles and social media engagement can be time consuming and it is difficult to
evaluate if such an engagement yield results. Hence, MFDs should simply stick to physical
meetings and phone calls to stay in touch with clients.
People value personal interaction. MFDs can create deep and meaningful bonds with their
clients simply by talking to them once every month.
This creates a base of loyal and satisfied clients, which in turn attracts more referrals.
Distributors have not only survived but thrived during the pandemic. Various timely actions
have given important lessons like, to survive in such crucial time ‘adaptability’ is the key.
17
CHAPTER 3
3 C Analysis
Company Analysis
WPG Holdings the global leading and the largest electronics distributor in Asia*, headquarters
in Taipei, Taiwan (TSE:3702). WPG is operating through four semiconductor components
distributors (WPIg, SACg, AITg, and YOSUNg) serves as a franchise partner for about 250
worldwide suppliers. With 5,000 staff in 77 sales offices around the
world, WPG achieved US$25.97 billionin 2022 revenue. WPG, the first holding company in
semiconductor components industry, has the global operation, local flexibility and long-term
development in Asia-Pacific Market. With our vision “the First Choice of Industry • the
Benchmark of Distribution”, and shared values “Teamwork, Integrity, Professionalism and
Effectiveness”. we have been awarded by “Outstanding International Branded Distributor
Award” for 22 consecutive years. Under the new manufacturing trend, we are committed to
transforming into a Data-Driven enterprise and build an online digital platform - WPG
DADAWANT. We are positioned as a LaaS (Logistics as a Service) provider to advocate
smart logistics and assist our customers in facing the challenges of smart
manufacturing. WPG expected to build trust with technologies and build a co-opetition eco-
system together with the industry through “alliances”. Moreover, we proactively promote the
digital transformation based on the principle of “customer orientation, technology
empowerment, collaborative ecosystem and era co-creation”. (*Source: Ranked by Gartner
Research Mar, 2023)
To Become the First Choice of Industry.
To Become the Benchmark of Distribution.
At WPG Holdings, we serve our partners with delighted spirits to enhance valuable, long-
lasting partnerships through “co-opetition” model.
18
Shared Values
Teamwork:
Best interests of WPG are always the first. (Should there be a conflict of interests, groups'
benefits take priority over personal bias, prejudice and motivation.)
Accelerate integration of same function teams among companies and regions.
Prevail no prejudices in nationalities or regions, but balanced interests and fairness.
Professionalism:
To become the first choice of stakeholders including clients, vendors and shareholders.
To construct a learning environment where individuals and groups continually enhance skill.
To focus on core operation and implement strictly.
Effectiveness:
Highlight on output, the quantity of capacity and balance of both.
Set quantifiable objectives, be strict on details, do execute, and fulfill tasks.
Set standard operating procedure to avoid same mistakes.
Products and Services
Integrated Circuits (ICs)
Microcontrollers, processors, memory chips, and other ICs from various manufacturers An
integrated circuit (IC), sometimes called a chip, microchip or microelectronic circuit, is
a semiconductor wafer on which thousands or millions of
tiny resistors, capacitors, diodes and transistors are fabricated. An IC can function as
an amplifier, oscillator, timer, counter, logic gate, computer memory, microcontroller
or microprocessor.
An IC is the fundamental building block of all modern electronic devices. As the name
suggests, it's an integrated system of multiple miniaturized and interconnected components
embedded into a thin substrate of semiconductor material (usually silicon crystal).
19
A single IC could contain thousands or millions of:
• transistors
• resistors
• capacitors
• diodes
Additional components may also reside on it, all interconnected through a complex web of
semiconductor wafers, silicon, copper and other materials. Size-wise, each component is small,
usually microscopic. The resulting circuit, a monolithic chip, is also tiny -- often just enough
to occupy a few square millimeters or centimeters of space.
One common example of a modern-day IC is the computer processor, which typically contains
millions or billions of transistors, capacitors, logic gates, etc., connected together to form a
complex digital circuit. Although the processor is an IC, not all ICs are processors.
History and evolution of integrated circuits
The invention of the transistor -- a combination of the words transfer and resistor -- in 1947
set the stage for the modern computer age.
In the early days, each transistor came in a separate plastic package, and each circuit consisted
of discrete transistors, capacitors and resistors. Due to the large size of these components, early
ICs were only capable of holding a few of them -- wired together -- on the circuit board.
Over time, the development of solid-state electronics made it easier to reduce the size of
components.
In the late 1950s, inventors Jack Kilby of Texas Instruments, Inc., and Robert Noyce of
Fairchild Semiconductor Corporation found ways to lay thin paths of metal on devices and
have them function as wires. Their solution to the problem of wiring between small electrical
devices was the beginning of the development of the modern IC.
20
Modern integrated circuits: Design and construction
For the past half-century, ICs have progressed enormously with faster speeds, greater capacity
and smaller sizes.
Compared to the early days, today's ICs are unbelievably complex, capable of holding billions
of transistors and other components on a single small piece of material. The modern IC is all
one piece, with individual components embedded directly into the silicon crystal, rather than
simply mounted on it.
An IC relies on multiple levels of abstraction. The semiconductor wafer that makes up the IC
is fragile and contains numerous intricate connections between its many layers. A combination
of these wafers is known as a die.
With millions or billions of components on one single chip, it's not possible to position and
connect each component individually. Dies are too small to solder and connect to. Instead,
designers use a special-purpose programming language to create small circuit elements and
combine them to progressively increase the size and density of components on the chip to meet
application requirements.
The ICs are "packaged" to turn the delicate and tiny die into a black chip that now forms the
basis of hundreds of devices, including:
• computers
• mobile phones and smartphones
Microprocessors and ICs
The microprocessor is the most complicated type of IC, capable of performing billions of
operations per second. In a computing device, a microprocessor contains the central processing
unit (CPU) which runs a computer or the graphics processing unit (GPU), which specializes in
the rendering images and video. A single microprocessor contains billions of interconnected
transistors, each of which performs a specific logic function based on instructions from the
clock.
21
Passive Components:
Capacitors, resistors, inductors, and other passive electronic parts.
The circuit element which can only absorb electrical energy and dissipates it in the form of heat
or stores in either magnetic field or electric field is known as passive circuit
component or simply passive component.
Therefore, a passive component cannot provide electric power or power amplification in an
electric circuit. Some common examples of passive circuit components are resistor, inductor,
capacitor and transformer, etc.
A circuit element which only absorbs the power and convert it in heat or stores in electric field
or magnetic field is known as passive component.
The examples of passive components are resistor, inductor, capacitor and transformer, etc.
Passive components cannot provide power gain.
Passive components receive electrical energy and either convert it in the other forms such as
heat, light, rotation, etc. or store in the magnetic field or electric field.
The passive components cannot control the current flow in the circuit.
The slope of VI characteristics curve (i.e. the ratio of voltage to current) of a passive component
is positive at all the points.
The VI curve of the passive elements lies in the 1st
and 3rd
quadrant.
A passive element can only absorb electrical power. It is not capable for deliver power.
Passive components do not require any external power source to function. The passive
components such as resistor, inductor, capacitor, etc. do not require any source of electricity to
function, they use some other property to control the power in the circuit.
For passive components, the power gain is less than unity, hence they cannot amplify a signal.
Passive components by considering various parameters such as basic definition, function,
power gain or amplification, current flow, components role in the circuit, etc. Both active and
passive components are the most basic elements of an electrical or electronic circuit.
22
Supply Chain Management:
Understanding customer demand and forecasting future requirements is critical for supply
chain management. WPG likely analyzes its customers' demand patterns to ensure adequate
inventory levels and efficient distribution of electronic components.
Supply chain management is the management of the flow of goods and services and includes
all processes that transform raw materials into final products. It involves the active
streamlining of a business's supply-side activities to maximize customer value and gain a
competitive advantage in the marketplace.
Supply chain management (SCM) represents an effort by suppliers to develop and implement
supply chains that are as efficient and economical as possible. Supply chains cover everything
from production to product development to the information systems needed to direct these
undertakings.
Typically, SCM attempts to centrally control or link the production, shipment, and distribution
of a product. By managing the supply chain, companies can cut excess costs and deliver
products to the consumer faster. This is done by keeping tighter control of internal inventories,
internal production, distribution, sales, and the inventories of company vendors.
SCM is based on the idea that nearly every product that comes to market results from the
efforts of various organizations that make up a supply chain. Although supply chains have
existed for ages, most companies have only recently paid attention to them as a value-add to
their operations.
5 Parts of SCM
The supply chain manager tries to minimize shortages and keep costs down. The job is not
only about logistics and purchasing inventory. According to Salary.com, supply chain
managers “oversee and manage overall supply chain and logistic operations to maximize
efficiency and minimize the cost of organization's supply chain."
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Planning:
To get the best results from SCM, the process usually begins with planning to match supply
with customer and manufacturing demands. Firms must predict what their future needs will
be and act accordingly. This relates to raw materials needed during each stage of
manufacturing, equipment capacity and limitations, and staffing needs along the SCM
process. Large entities often rely on ERP system modules to aggregate information and
compile plans.
Sourcing:
Efficient SCM processes rely very heavily on strong relationships with suppliers. Sourcing
entails working with vendors to supply the raw materials needed throughout the
manufacturing process. A company may be able to plan and work with a supplier to source
goods in advance. However, different industries will have different sourcing requirements.
In general, SCM sourcing includes ensuring:
The raw materials meet the manufacturing specification needed for the production of goods.
The prices paid for the goods are in line with market expectations.
The vendor has the flexibility to deliver emergency materials due to unforeseen events.
The vendor has a proven record of delivering goods on time and in good quality.
Supply chain management is especially critical when manufacturers are working with
perishable goods. When sourcing goods, firms should be mindful of lead time and how well a
supplier can comply with those needs.
Manufacturing:
At the heart of the supply chain management process, the company transforms raw
materials by using machinery, labour, or other external forces to make something new. This
final product is the ultimate goal of the manufacturing process, though it is not the final stage
of supply chain management.
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The manufacturing process may be further divided into sub-tasks such as assembly, testing,
inspection, or packaging. During the manufacturing process, a firm must be mindful of waste
or other controllable factors that may cause deviations from original plans. For example, if a
company is using more raw materials than planned and sourced for due to a lack of employee
training, the firm must rectify the issue or revisit the earlier stages in SCM.
Delivering:
Once products are made and sales are finalized, a company must get the products into the
hands of its customers. The distribution process is often seen as a brand image contributor, as
up until this point, the customer has not yet interacted with the product. In strong SCM
processes, a company has robust logistic capabilities and delivery channels to ensure timely,
safe, and inexpensive delivery of products. This includes having a backup or diversified
distribution methods should one method of transportation temporarily be unusable. For
example, how might a company's delivery process be impacted by record snowfall in
distribution centre areas?
Returning:
The supply chain management process concludes with support for the product and customer
returns. It’s bad enough that a customer needs to return a product, and it’s even worse if it’s
due to an error on the company's part. This return process is often called reverse logistics, and
the company must ensure it has the capabilities to receive returned products and correctly
assign refunds for returns received. Whether a company is performing a product recall or a
customer is simply not satisfied with the product, the transaction with the customer must be
remedied.
A supply chain is the network of individuals, companies, resources, activities, and
technologies used to make and sell a product or service. A supply chain starts with the delivery
of raw materials from a supplier to a manufacturer and ends with the delivery of the finished
product or service to the end consumer.
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Customer Analysis:
Customer Segmentation:
Companies like WPG Holdings often analyse their customer base to segment it based on
various criteria. This may include industry, geographical location, purchasing behaviour, size,
and other relevant factors. By segmenting their customers, WPG can better understand the
different needs and preferences of various groups, enabling them to tailor their services
accordingly.
Customer segmentation is the practice of dividing a company’s customers into groups that
reflect similarity among customers in each group. The goal of segmenting customers is to
decide how to relate to customers in each segment in order to maximize the value of each
customer to the business.
Customer segmentation analysis is the process performed when looking to discover insights
that define specific segments of customers. Marketers and brands leverage this process to
determine what campaigns, offers, or products to leverage when communicating with specific
segments.
For example, a retail brand looking to determine how to reactivate lapsed customers might
create a segment of customers who purchased in the past and haven’t purchased or browsed
the eCommerce store in the past 30 days. It might then analyze that segment to understand what
type of products these customers have purchased in the past, what is their discount affinity and
more. Using this information, the marketing team can determine the best campaign to create in
order to reactivate these lapsed customers.
Customer segmentation has the potential to allow marketers to address each customer in the
most effective way. Using the large amount of data available on customers (and potential
customers), a customer segmentation analysis allows marketers to identify discrete groups of
customers with a high degree of accuracy based on demographic, behavioral and other
indicators.
Since the marketer’s goal is usually to maximize the value (revenue and/or profit) from each
customer, it is critical to know in advance how any particular marketing action will influence
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the customer. Ideally, such “action-centric” customer segmentation will not focus on the short-
term value of a marketing action, but rather the long-term customer lifetime value
(CLV) impact that such a marketing action will have. Thus, it is necessary to group, or segment,
customers according to their CLV.
Of course, it is always easier to make assumptions and use “gut feelings” to define rules which
will segment customers into logical groupings, e.g., customers who came from a particular
source, who live in a particular location or who bought a particular product/service. However,
these high-level categorizations will seldom lead to the desired results.
It is obvious that some customers will spend more than others during their relationship with a
company. The best customers will spend a lot for many years. Good customers will spend
modestly over a long period of time, or will spend a lot over a short period of time. Others
won’t spend too much and/or won’t stick around too long.
The right approach to segmentation analysis is to segment customers into groups based on
predictions regarding their total future value to the company, with the goal of addressing each
group (or individual) in the way most likely to maximize that future, or lifetime, value.
Once you decide the best categories and attributes to base your customer segments on, you
must decide what approach you will use to create those segments. The two most common
approaches to segmenting customers are rule-based segmentation and cluster-based
segmentation.
Rule-based segmentation focuses on setting thresholds to determine what segment a customer
should be a part of. The approach segments customers based on a set of rules. The rule-based
segmentation approach is a simple way to categorize customers into segments but requires you
to determine the attributes used to segment customers each time. It makes it easier to watch
trends by looking at how many customers you have in each group. It is difficult to add new
attributes, so using the rule-based segmentation approach requires a lot of work to keep
segments updated if customers’ behaviors change.
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Instead of setting thresholds to divide customers, cluster-based segmentation identifies the best
way to segment customers so the segments are as equal as possible. It shows the relationship
between data points so they can be put into customer segments. Cluster-based segmentation
creates these groups using a K-means algorithm. The cluster-based segmentation approach
allows you to find new insights in your data to create segments you did not know existed. It
also can put customers into segments using multiple attributes. While cluster-based
segmentation provides more segmentation capabilities with little maintenance, it is a difficult
approach to set up without a talented data scientist.
Accurate customer segmentation involves tracking dynamic changes, and frequently updating
new data. Although segmenting customers according to their CLV is the recommended
approach, there are many types of customer segmentation models. Some of the more common
types are segmentation via cluster analysis, RFM segmentation, and longevity. Some marketers
might even combine one or more segmentation models in order to reach their goals.
Customer Needs and Preferences:
Understanding customer needs and preferences is crucial for any company's success. WPG
likely conducts surveys, gathers feedback, and analyzes customer data to gain insights into
what their customers value, how they make purchasing decisions, and what challenges they
face.
• Friendliness:
This is the most basic customer need that's associated with things like courtesy and
politeness. Friendly agents are a top indicator of a good customer experience, according
to the customers surveyed in our 2021 Trends Report.
• Empathy:
Customers need to know the organization understands and appreciates their needs and
circumstances. In fact, 49% surveyed in our 2021 Trends Report said they want agents
to be empathetic.
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• Fairness:
Customers must feel that they're getting adequate attention and fair and reasonable
answers.
• Control:
Customers want to feel like they have an influence on the outcome. You can empower
your customers by listening to their feedback and using it to improve.
• Alternatives:
Customers want choice and flexibility from customer service; they want to know there
is a range of options available to satisfy them. In fact, high-performing companies are
more likely to provide customers with a choice of customer service channels. 50% of
high performers have adopted an omnichannel support strategy, compared to 18% of
their lower-performing peers.
• Information:
Customers want to know about products and services in a pertinent and time-sensitive
manner; too much information and selling can be off-putting for them. A knowledge
base is a great way to provide existing customers with the information they need, when
they need it. And high-performing CX teams are more likely to offer a knowledge base,
according to our research.
• Time:
Customers’ time is valuable and organizations’ need to treat it as such. 73% of
customers said resolving their issues quickly is the top component of a good customer
experience. To deliver on that expectation, CX teams need customer service
software that arms them with tools to respond to customers quickly and effectively.
Customer Satisfaction and Loyalty:
Monitoring customer satisfaction and loyalty is vital for any business. Companies often use
metrics like Net Promoter Score (NPS) or Customer Satisfaction (CSAT) scores to measure
how satisfied their customers are and identify areas for improvement.
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Customer satisfaction (CSAT) is a measure of how well a company’s products and services
meet customers’ expectations. It reflects your business’ health by showing how well your
products are resonating with buyers.
Customer satisfaction can seem like a vague concept, but there are concrete ways to measure
it. You can source a customer satisfaction score by conducting CSAT surveys, for example.
These are typically short, one- to two-question surveys offered at the end of a business
transaction. A classic question is “How satisfied are you with the product?” with answers
ranging from “very satisfied” to “very unsatisfied.”
Although CSAT is one part of customer satisfaction, it is far from the only measure. Businesses
also use Net Promoter Score (NPS) surveys to determine whether their customers
are promoters, detractors, or passives.
Customer satisfaction measures how happy a customer was with a support interaction or a
purchase. Customer loyalty, on the other hand, is an ongoing state. Loyal customers give a
company their repeat business over time. It’s not a short-term measure, but rather a long-term
understanding of the health of your customer relationship.
When you create and maintain a customer experience that resonates with buyers, customers
return again and again. Ensuring high customer satisfaction in the short term is a key
component of gaining that long-term customer loyalty.
It drives customer Loyalty:
Satisfied customers tend to share their positive experiences with friends and family. But the
opposite is also true: An unhappy customer tells more people about their negative experiences
than a happy customer does.
Customer satisfaction metrics reflect your support team’s Performance
Customer satisfaction benchmarks and metrics do not just help you gauge how happy your
audience is—they also tell you how your support team is doing.
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It encourages repeat purchases:
A satisfied customer is a loyal customer, who will stick with your company year after year. So,
how do you get those repeat customers? By hitting your customer support efforts out of the
park. Our trends report agrees: 57 percent of consumers say excellent customer service is a
factor in their brand loyalty.
It increases customer lifetime value:
75 percent of customers are willing to spend more to buy from companies that give them a
good customer experience, according to our Trends Report. Satisfied customers are not only
more likely to remain loyal and less likely to churn, they are also more likely to spend more
money with your business.
It boosts new customer acquisition:
At the onset of the pandemic, companies with the most satisfied customers were also 3.3x more
likely to have grown their customer bases. Customer service is not just important for supporting
existing customers, it is also key to bringing in potential customers and supporting them when
they reach out. If a prospect does not have a positive experience when they interact with your
support team, they will be less likely to purchase. The main difference between service today
and service 10 years ago is that customers expect premium service to be built-in from the first
sales or marketing interaction and carry through to the moment they ask for help, post-purchase
and back again. To position themselves for success, businesses must integrate service into the
journey at every interaction point.
How to achieve customer satisfaction
• Become obsessed with customer feedback
• Create a sense of convenience
• Deliver fast responses
• Make customer satisfaction a company- wide focus
• Lead with Empathy
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Competitor Analysis
Analyzing the competition is essential to stay ahead in the market. WPG Holdings would likely
analyze its competitors' customer base, product offerings, pricing strategies, and service levels
to identify areas where they can differentiate themselves and provide better value to their
customers.
A competitor analysis, also referred to as a competitive analysis, is the process of identifying
competitors in your industry and researching their different marketing strategies. You can use
this information as a point of comparison to identify your company’s strengths and weaknesses
relative to each competitor.
You can do a competitor analysis at a high level, or you can dive into one specific aspect of
your competitors’ businesses. This article will focus on how to conduct a general competitive
analysis, but you’ll want to tailor this process to match the needs and goals of your business.
Knowing your company’s strengths can inform your positioning in the market, or the image of
your product or service that you want members of your target audience to have in their minds.
It’s essential to clearly communicate to potential customers why your product or service is the
best choice of all those available.
Being aware of your company’s weaknesses is just as important in helping your business grow.
Understanding where you fall short of your customers’ expectations can help you identify areas
where you may want to invest time and resources.
You might learn that customers prefer your competitors’ customer service, for example. Study
your competition to find out what they’re doing right, and see what you can apply to your
business.
Conducting a thorough assessment of what your competitors offer may also help you identify
areas where your market is underserved. If you find gaps between what your competitors offer
and what customers want, you can make the first move and expand your own offerings to
satisfy those unmet customer needs.
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Studying the competition can also help you see which way the industry as a whole is moving.
However, you should never do something just because your competitors are doing it. Copying
the competition without really considering your own place in the market rarely, if ever, leads
to success.
When doing a competitor analysis, you should include companies that are both larger and
smaller than your own. Studying well-established businesses in your industry can give you a
model of what success looks like and a reference point against which to compare your future
growth. On the other hand, researching new entrants into your industry tells you what
companies may threaten your market share in the future.
Arrow Electronics, Inc.:
Arrow Electronics is one of the largest global distributors of electronic components and
enterprise computing solutions. It operates in multiple regions and serves a wide range of
industries.
Arrow Electronics was founded in 1935 when a retail store named Arrow Radio opened
on Cortlandt Street in the heart of lower Manhattan’s “Radio Row,” the birthplace of
electronics distribution. Arrow Radio, established by Maurice (“Murray”) Goldberg, sold
used radios and radio parts to retail customers. Other industry pioneers with businesses
nearby were Charles Avnet and Seymour Schweber.
Michael J. Long succeeded Mitchell as CEO in 2009, becoming chairman in 2010. A
seasoned executive, long served at Schweber Electronics from 1983 to 1990 before joining
Arrow in 1991 with the merger of both companies. He served in a number of increasingly
senior management positions with Arrow before becoming CEO and leading the company
through a decade of growth that saw over 40 strategic acquisitions and the expansion of
its global components and computer systems businesses.
On June 1, 2022, Sean J. Kerins succeeded long as president and CEO. Kerins joined
Arrow in 2007 as vice president of storage and networking, North America, for the
company’s enterprise computing solutions business. He went on to become regional
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president before being named global president of the business in 2014 and then Arrow’s
chief operating officer in 2020.
Avnet, Inc.:
Avnet is another major player in the electronic component’s distribution space, offering a
comprehensive portfolio of products and supply chain solutions to customers worldwide.
Avnet is a global electronic components distributor with extensive design, product, and
marketing and supply chain expertise for customers and suppliers at every stage of the product
lifecycle. For the past 100 years, Avnet has helped its customers and suppliers around the world
realize the transformative possibilities of technology. Our culture was founded on new ideas
and emerging technology. Headquartered in Phoenix, Arizona, Avnet is a top 3 global
distributor of electronic components, with FY21 revenue of $19 billion. Avnet serves more
than 300 suppliers and 100,000 customers worldwide with operations in more than 300
locations and 140 countries in North America, Europe/Middle East/Africa (EMEA), and Asia-
Pacific.
TTI specializes in electronic component distribution, offering a broad range of products and
value-added services to OEMs and EMS providers.
TTI, Inc. a Berkshire Hathaway company, is an authorized specialty distributor of interconnect,
passive and electromechanical components and the distributor of choice for electronics
manufacturers worldwide.
TTI, Inc. is a specialty distributor of passive, interconnect, electromechanical and discrete
components that exists to accomplish three major goals:
Be the most preferred electronics distributor for our customers and suppliers, delivering the
right parts exactly on time.
Exceed our internal and external customer requirements through continuous improvement.
Provide a home for hardworking, dedicated, knowledgeable and ethical people who believe in
this Company and this philosophy.
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Digi-Key Electronics:
Digi-Key is an electronics distributor known for its extensive online catalog and efficient
fulfillment processes. It caters to a global customer base.
With great respect for the identity that helped establish Digi Key across the globe, we are
reimagining and refreshing our logo and our branding. The unique new look and tone have
been designed to emphasize our ongoing connection with suppliers and customers, while
reflecting Digi Key’s digital-first, forward-looking perspective.
Future Electronics:
Future Electronics is a global distributor of electronic components with a broad product
portfolio and a strong focus on providing engineering support and design services to customers.
Future Electronics’ strong global presence and success is established through world-class
supply chain solutions, market intelligence, engineering expertise, a dedicated sales team just
a click or call away, and the innovative products to bring product ideas to life.
With worldwide headquarters in Montreal, Quebec, Canada, our diverse global team makes
Future Electronics one of the most reputable companies in the industry.
Supply Chain experts have the knowledge and experience to assist you in implementing an
effective and balanced model focused on security of supply.
Many companies today offer supply chain management - we believe in giving you much more
than mere management tools. Future Electronics is uniquely positioned to offer a
comprehensive range of services and innovative solutions to develop a powerful, customized
program tailored especially for your needs and goals, to truly transform your supply chain.
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Mouser Electronics:
Mouser is an electronic component distributor that emphasizes rapid delivery and offers a wide
range of products for various industries.
Mouser Electronics is a global authorized distributor of semiconductors and electronic
components for over 1,200 industry-leading manufacturer brands. We specialize in the rapid
introduction of the newest products and technologies targeting the design engineer and buyer
communities.
Rutronik Elektronische Bauelemente GmbH:
Rutronik is a leading distributor of electronic components and embedded solutions, with a
strong presence in Europe and expanding global operations.
The broad product range includes semiconductors, passive and electromechanical components
as well as embedded boards, storage technologies, displays, and wireless products. Customers
also have access to the Rutronik24 e-commerce platform, where all articles can be found. In
addition to its comprehensive line of components, Rutronik delivers consulting services for
technical, commercial, and logistical issues for its customers as well as unparalleled service
and technical support with a consistently high level of quality to its customers worldwide.
The market for electronic components places the highest of demands on logistics. On the one
hand, broad liners need to cope with widely differing volumes of product quantities from a
huge product range.
Premier Farnell (part of Avnet Group):
Premier Farnell, operating under Avnet Group, is a distributor of electronic components,
focusing on providing design and engineering solutions.
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80 years in high-service electronics components distribution, Farnell’s global businesses
distribute a comprehensive portfolio of products, supported by an international supply chain
and an inventory profile developed to anticipate and meet its customers' needs.
Experience working with the largest manufacturers designing and manufacturing development
kits and boards, provides customers of all sizes with experience which can be applied at any
stage to accelerate time to market – from research and design support, to prototype and test
right through to production services.
This extensive range of products and services is delivered by 3,300 employees in 60 countries
as Farnell in EMEA, Newark in North America and element14 in Asia Pacific. Consumers in
the UK can purchase from its CPC business. Farnell has over 950,000 products in stock
covering 2,000 manufacturer brands and supplying over two million customer contacts in more
than 150 global industries.
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CHAPTER 4
Organizational Structure/ Departments Profile.
1. Auditing Office
Responsible for conducting audits for the effectiveness of internal regulations and
institutional implementation for WPG holdings. Also make improvement
recommendations based on the results.
2. F&A Service and Spokesperson
Responsible for matters related to finance and accounting for WPG Holdings, as well
as maintaining relationship with investors. Also bear the responsibility of management
control, policy guidance and supervision of each group's corresponding functions. The
CFO also serves as the Company Spokesperson.
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3. IT Service
Responsible for matters related to information technology for WPG Holdings, as well
as its management, strategy planning, and continuous developing and optimizing of
information system platform. Also bear the responsibility of management control,
policy guidance and supervision of each group's corresponding functions
4. HR Service
Responsible for matters related to human resources for WPG Holdings. Also bear the
responsibility of management control, policy guidance and supervision of each group's
corresponding functions.
5. MarCom Service
Responsible for brand image, as well as planning, implementing and supervising the
WPG Holdings e-marketing platform. Also bear the responsibility of management
control, policy guidance, and supervision of each group's corresponding functions.
6. Legal Affairs Service
Responsible for the WPG Holdings legal affairs. Also bear the responsibility of
management control, policy guidance, and supervision of each group's corresponding
functions.
7. Credit Mgt. Service
Responsible for the WPG credit management services. Also bear the responsibility of
management control, policy guidance and supervision of each group's corresponding
functions.
8. Risk Mgt. Service
Responsible for the building of WPG Holdings’ risk and crisis mechanism,
coordinating risk management activities, and promoting risk and crisis management
awareness.
9. General Affairs Service
Responsible for the WPG Holdings general administrative affairs. Also bear the
responsibility of management control, policy guidance and supervision of each group's
corresponding functions.
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10. T.I.P.E. Service
Responsible for assisting WPG Holdings and each group to optimize the business
management mechanism, intelligent operation performance management, and
strengthen the quality of operation process to improve the overall operational
management efficiency and efficiency.
11. CMSO Office
Responsible for assisting WPG Holdings and each group to unite internally, establish
a resource sharing and collaborative cooperation platform to serve customers and
strengthen the production line. Ensure that all the transactions, customers, and products
are well managed in accordance to the global and local trade compliance regulations;
with the innovative services of dada platform automation and subscription, we have
improved the user experience and achieved digital results.
12. ESG Office
Responsible for matters related to sustainability development planning and
implementation for WPG, as well as tracking the results of sustainability activities,
and making plans for further improvement to enhance our sustainable competitiveness.
Human Resource professionals play a crucial role in managing an organization's most valuable
asset: its people. The HR profile can encompass a wide range of responsibilities, depending
on the size and structure of the company.
• Talent Acquisition and Recruitment:
HR professionals are involved in the recruitment process, sourcing and attracting
suitable candidates for open positions, conducting interviews, and coordinating hiring
activities.
• Employee Relations:
HR professionals are responsible for managing employee relations, resolving conflicts,
and fostering a positive work environment.
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• Performance Management:
They are involved in the performance management process, conducting performance
appraisals, and providing feedback to employees to enhance their performance and
development.
• Compensation and Benefits:
HR manages salary structures, benefits packages, and other compensation-related
matters.
• Training and Development:
HR coordinates employee training and development programs to enhance skills and
knowledge.
• Compliance and Legal:
They ensure compliance with employment laws, labour regulations, and company
policies.
• Employee Engagement:
HR professionals work to promote employee engagement and satisfaction,
implementing initiatives to boost morale and motivation.
• Health and Safety:
They play a role in maintaining a safe and healthy work environment, implementing
safety measures, and managing employee wellness programs.
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Chapter 5
SWOT Analysis
SWOT analysis is a strategic planning tool that can be used by Wpg Resources Ltd managers
to do a situational analysis of the firm. It is a useful technique to map out the present Strengths
(S), Weakness (W), Opportunities (O) & Threats (T) Wpg Resources Ltd is facing in its current
business environment.
The Wpg Resources Ltd is one of the leading firms in its industry. Wpg Resources Ltd
maintains its prominent position in market by critically analyzing and reviewing the SWOT
analysis. SWOT analysis a highly interactive process and requires effective coordination
among various departments within the company such as – marketing, finance, operations,
management information systems and strategic planning.
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Strengths
Global Presence:
WPG Holdings has an extensive international network with operations and distribution centers
across various regions, enabling it to serve a diverse customer base worldwide.
Broad Product Portfolio:
The Company offers a comprehensive range of electronic components and semiconductor
products, giving it a competitive advantage in meeting the needs of different industries.
A product portfolio is the collection of all the products or services offered by a company, each
with a different growth rate and market share. Product portfolio analysis can provide nuanced
views on a stock type, company growth prospects, profit margin drivers, income contributions,
market leadership, and operational risk. This is essential for investors conducting equity
research or analysts supporting internal corporate financial planning.
All the products and services offered by a company constitute its product portfolio. Analyzing
a company’s product portfolio allows investors and internal analysts to assess its strengths and
growth potential, as well as the risks that investing in it could entail. There are significant
differences between the portfolios of mature companies and younger firms.
Strong Supplier Relationships:
WPG has established strong partnerships with leading suppliers and manufacturers in the
electronics industry, ensuring a stable supply of high-quality components.
Having great suppliers as part of your business improves both your service to your customers
as well as your efficiency.
A good relationship with a supplier can also provide you with a much-needed business
supporter who can provide a fresh perspective and encourage business to come your way.
After all, if your business is growing, so will your suppliers’ business.
To maintain a great supplier relationship, you have to approach it in the right way.
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Efficient Supply Chain:
The Company’s efficient supply chain management enables quick delivery and reduces lead
times; meeting customer demands effectively.
Supply chain efficiency focuses on delivering quality products to customers at the lowest
possible cost by maximizing such resources as materials and labor.
Supply chain responsiveness focuses on customers’ expectations and strives to provide a
quality product faster.
Experienced Management Team:
WPG Holdings benefits from having an experienced and skilled executive management team,
guiding the company's strategic decisions.
A management team creates guidelines, goals, checkpoints, and objectives for employees to
improve productivity while also providing support and motivation. The goal is to: manage people
and manage processes. As a team manager you’ll recognize employee needs, incorporate clear
guidelines, and set timelines. Management teams help balance needs while moving toward a
common goal.
Weaknesses
Dependence on the Electronics Industry:
WPG's business heavily relies on the demand for electronic components and semiconductor
products, making it susceptible to fluctuations in the electronics market.
Electronics industry, the business of creating, designing, producing, and selling devices such
as radios, televisions, stereos, computers, semiconductors, transistors, and integrated circuits
(see electronics). As sales of electronic products in the United States grew from some $200
million in 1927 to over $266 billion in 1990, the electronics industry transformed factories,
offices, and homes, emerging as a key economic sector that rivalled the chemical, steel, and
auto industries in size.
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Market Competition:
The electronics distribution industry is highly competitive, and WPG faces competition from
other major players and regional distributors.
Opportunities
Technological Advancements:
The continuous evolution of technology, including IoT, 5G, AI, and electric vehicles, creates
new opportunities for WPG to supply components for emerging applications.
Technological advancement is the improvement and innovation of the utility of
science. Science is an epistemological methodology in which understanding, descriptions,
explanations, and predictions for natural and mathematical phenomenon are sought after
through observation, investigation, experimentation, and especially falsification. Essentially,
science is the systematic weeding out of bad or false ideas. Technology is any utility and
applicability of scientific understanding; i.e., technology is the application of science for
practical use and purposes. For example, levers and pulleys are technology because they apply
understandings of geometry and physics. A pencil is technology because it applies
understanding of the physical properties of graphite.
Technological advancement occurs when technologies or applied sciences become more
precise, accurate, efficient, or more powerful or capable. Scientific and technological
advancements have made many important changes throughout history, some better than others.
Growth in IoT and Smart Devices:
The increasing adoption of Internet of Things (IoT) devices and smart devices in various
industries presents a significant growth opportunity for WPG Holdings.
Emerging Markets:
Expanding into emerging markets with rising demand for electronics, such as Southeast Asia
and India, can provide new growth avenues.
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An emerging market economy is the economy of a developing nation that is becoming more
engaged with global markets as it grows. Countries classified as emerging market economies
are those with some, but not all, of the characteristics of a developed market.
Threats
Supply Chain Disruptions:
WPG may face risks related to supply chain disruptions, component shortages, and geopolitical
issues that can impact the availability of products.
Supply chain disruption is an interruption in the flow of process that involves any of the entities
associated with the production, sales, and distribution of specific goods or services. A
systematized supply chain is crucial in maintaining the quality of products from start to end,
and ensure that all resources utilized are of the best quality.
Economic Volatility:
Economic downturns or global economic uncertainties can lead to reduced demand for
electronic components, affecting WPG's business.
It is a rate at which the price of a security increases or decreases for a given set of returns.
Volatility is measured by calculating the standard deviation of the annualized returns over a
given period of time. It shows the range to which the price of a security may increase or
decrease.
Volatility measures the risk of a security. It is used in option pricing formula to gauge the
fluctuations in the returns of the underlying assets. Volatility indicates the pricing behaviours
of the security and helps estimate the fluctuations that may happen in a short period of time.
If the prices of a security fluctuate rapidly in a short time span, it is termed to have high
volatility. If the prices of a security fluctuate slowly in a longer time span, it is termed to have
low volatility.
46
Technological Obsolescence:
Rapid advancements in technology can lead to the obsolescence of certain components,
requiring continuous adaptation and investment in new product lines.
Currency Fluctuations:
As a global company, currency fluctuations can impact WPG's financial performance,
especially when conducting business across different countries.
47
CHAPTER 6
Learning Outcome
Working as an intern at WPG India Pvt Ltd. with the commerce department, I learnt a lot about
how the company handles its income and expenses and how they reimburse their employees.
I understood how the company has a complete record of its employees. They also have a record
of details such as travelling details invoice, tax invoice etc.
I also understood how the company reimburse the amount to its employees, in the process of
reimbursement there should be more than two approvals. I learned that everything is followed
according to the process or step by step.
I also learnt about trade compliance statement, which is a document to ensure that the trade is
happening between the two companies.
Through the internship I learnt about confidential credit application, which means requesting
to extend the maturity time period to pay the current amount.
Another important concept that i learnt from my internship was Letter of Authorization, which
means the third-party acts on behalf of the company.
I also learnt about Tax Invoice, which means it is an invoice that is issued in supply of goods
or services.
As I worked at WPG India Pvt Ltd., which is a semiconductor distributor, I was practically
able to see the materials or products that were supplied or distributed. Each product or material
had a different & unique part number with which we could identify it. This also helped us check
the quantity of each material present in the box.
Working with the commerce department at WPG India Pvt Ltd., I had the opportunity to
understand and explore the Oracle software. This is the software used by WPG for all its
payments and receipts. All the payments receipts of the company should be accounted using
the Oracle software, so that the company can have all of it recorded. Through my internship I
learnt a few concepts such as AP, which means accounts payable. Here all the payments are
posted in an AP module.
48
Another concept that I learnt was AR, which means accounts receivables. Here all the
receivable or receipts are posted in an AR module.
NM module is another new concept that I learnt through my internship where all the petty cash
and all the banking details are posted.
I also had a clear and practical understanding of how the balance sheet of my company is
prepared. I also understood how the profit & loss account of the company is prepared.
Overall I had a wonderful working experience at WPG India Pvt Ltd. I am sure this experience
will help me in my future career as well.
49
Chapter 7
Conclusion
The accounts industry encompasses a wide range of financial activities, including accounting,
auditing, tax preparation, financial analysis, and advisory services. These services are critical
for businesses to maintain accurate financial records, comply with regulatory requirements,
make informed decisions, and attract investments. Additionally, the accounts industry plays a
pivotal role in aiding economic growth, as it facilitates the allocation of resources and capital
by providing reliable financial information to investors and stakeholders.
In a nutshell, this internship has been an excellent and rewarding experience. I can conclude
that there have been a lot I’ve learnt from my work at WPG which Includes Data Entry and
Accuracy, Accounting Software, Time Management, Communication Skills. Needless to
say, the technical aspects of the work I’ve done are not flawless and could be improved
provided enough time. Two main things that I’ve learnt is the importance of time-
management skills and self-motivation.
Internships helped me to develop a perfect and successful career in a prestigious company
that’s connected to my study interests.

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Intern Report MAGLIN 1 (1).pdf

  • 1. INTERNSHIP REPORT ON WPG INDIA ELECTRONICS PVT LTD Submitting in partial fulfilment of the requirements for the Award of the Degree of BACHELOR OF COMMERCE By MAGLIN.Y 21COMF15 Under the Guidance of DR.P. KUMARASAMY KRISTU JAYANTI COLLEGE (AUTONOMOUS) K. NARAYANPURA, KOTHANUR POST, BANGALORE - 560077 2023 – 2024
  • 2. KRISTU JAYANTI COLLEGE (AUTONOMOUS) CERTIFICATE FROM GUIDE This is to certify that this internship work titled WPG INDIA ELECTRONICS PVT LTD is based on an original project study conducted by MAGLIN.Y (21COMF15) of V semester BCom under my guidance. This internship work has not formed the basis for the award of any degree/ diploma by Bangalore North University or any other university. Place: Bangalore Date: Name of the Guide: Dr.P. Kumarasamy
  • 3. KRISTU JAYANTI COLLEGE (AUTONOMOUS) CERTIFICATE FROM INSTITUTION This is to certify that this internship work titled in WPG INDIA ELECTRONICS PVT LTD is based on an original project study conducted by MAGLIN.Y (21COMF15) of V semester BCom under the guidance of DR.P. Kumarasamy. This internship work is based on original and has not formed the basis for the award of any degree/diploma by Bangalore North University or any other University. Head of the Department Place: BANGALORE Date:
  • 4. DECLARATION FROM CANDIDATE I MAGLIN.Y hereby declare that this internship work titled in WPG INDIA ELECTRONICS PVT LTD is based on the original project conducted by me under the guidance of DR.P. Kumarasamy. This has not been submitted earlier for the award of any other degree/diploma from Bangalore North University or any other University This has not been submitted earlier for the award of any other degree/diploma from Bangalore North University or any other University. Place: BANGALORE Date: Student’s Name MAGLIN.Y Reg. No: 21COMF15
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  • 6. Table of Contents Sl No. Chapter No. Particulars Pages 1 1 Introduction 1-2 2 2 Industry Profile 3-16 3 3 3 C Analysis – Company, Customer, Competitor 17-36 4 4 Organizational Structure/Departments Profile 37-40 5 5 SWOT Analysis 41-46 6 6 Learning Outcomes 47-48 7 7 Conclusion 49 Total 49
  • 7. 1 CHAPTER 1 Introduction I am Maglin.Y, studying 3rd year at Kristu Jayanti College. I completed my internship at WPG India Electronics Private Ltd from 14th June to 17th July 2023. My internship was on offline mode and the company had a minimum of 30 to 40 employees. As an intern at the WPG India Electronics Pvt Ltd, I gained knowledge about how the company manages the incomes and expenses of the company. Observing and understanding the process of preparing the financial statements. My mentor was Miss Kanchana who taught me a lot of things about the company and on what basis does the company works. Company industry belongs to distributing WPG Holdings Ltd (WPG Holdings) is an importer and exporter of semiconductor and electronic components. The company distributes interconnect, passive components, and computer and peripheral products. It also offers diodes, audio and video amplifier or controller, smartphone chip, transistor, sensor, LED, LCD, ICs, converters and memory devices. WPG Holdings the global leading and the largest electronics distributor in Asia, headquarters in Taipei, Taiwan. WPG is operating through four semiconductor components distributors (WPIg, SACg, AITg, and YOSUNg) serves as a franchise partner for about 250 worldwide suppliers. With 5,000 staff in 77 sales offices around the world, WPG achieved US$25.97 billion in 2022 revenue. WPG, the first holding company in semiconductor components industry, has the global operation, local flexibility and long-term development in Asia-Pacific Market. With our vision “the First Choice of Industry • the Benchmark of Distribution”, and shared values “Teamwork, Integrity, Professionalism and Effectiveness”. We have been awarded by “Outstanding International Branded Distributor Award” for 22 consecutive years. Under the new manufacturing trend, we are committed to transforming into a Data-Driven enterprise and build an online digital platform - WPG DADAWANT. We are positioned as a LaaS (Logistics as a Service) provider to advocate smart logistics and assist our customers in facing the challenges of smart manufacturing. WPG expected to build trust with technologies and build a co-opetition eco-system together with the industry through
  • 8. 2 “alliances”. Moreover, we proactively promote the digital transformation based on the principle of “customer orientation, technology empowerment, collaborative ecosystem and era co-creation” Vision/Mission/Shared Values Vision • To Become the First Choice of Industry. • To Become the Benchmark of Distribution. Mission Statement • At WPG Holdings, we serve our partners with delighted spirits to enhance valuable • Long-lasting partnerships through “co-opetition” model. Shared Values Teamwork: Accelerate integration of same function teams among companies and regions. Prevail no prejudices in nationalities or regions, but balanced interests and fairness. Integrity: Upright and law-abiding operation Enthusiastic services, no light promises and always walk the talk. Transparent operating, be courage to admit mistakes and make corrections in time. Professionalism: To become the first choice of stakeholders including clients, vendors and shareholders. To focus on core operation and implement strictly. • Effectiveness: Highlight on output, the quantity of capacity and balance of both. Set quantifiable objectives, be strict on details, do execute, and fulfil tasks.
  • 9. 3 Chapter 2 Industry Profile What is a distributor? A distributor is an intermediary entity between a producer of a product, or manufacturer, and a downstream entity in the distribution channel or supply chain. The downstream entity is typically a retailer or value-added reseller (VAR), but it can also be a wholesaler. The distributor is an integral supply chain component, acting as an intermediary between the manufacturer and the downstream entity. The distributor bridges the gap between upstream and downstream entities while adding important services that help smooth the distribution process. A distributor typically works with multiple manufacturers and multiple downstream entities. For each manufacturer, the distributor serves as an agent that enters into an agreement with the manufacturer to sell its products to retailers, VARs or wholesalers.
  • 10. 4 Some of the confusion comes from the fact that a distributor performs some of the same functions as a wholesaler. However, the distributor's responsibilities are generally much more complex. In addition, the distributor takes a more active role with both the manufacturer and retailer, such as handling payment and procurement. The distributor also takes on more advanced capabilities. For example, manufacturers that lack the means to build out a channel strategy often outsource that work to distributors. Distributors also frequently take a more proactive approach in educating resellers about new products by employing strategies such as presales training, roadshows or demos on behalf of manufacturers. Distributors might also provide services around the procurement process, including contract negotiation, marketing or product warranties. In contrast, wholesalers primarily focus on buying products in large quantities, breaking them into smaller units and selling them at profit. Distribution vs. Logistics Logistics refers to the careful planning and procedures required for efficient supply and delivery of products. Supply management, bulk and shipping packaging, temperature control, security, fleet management, delivery routing, shipment monitoring, and warehousing are just a few examples of the activities and operations that fall under the category of logistics. The most straightforward way to think of logistics is as physical distribution. In logistics, order fulfilment through all distribution channels is the main goal of the distribution management system. A product or service flows through a chain of agents and organizations called a distribution channel as it travels from its point of origin to a consumer. E-commerce sites, wholesalers, retailers, and third-party or independent distributors are a few examples of distribution channels. Activities and procedures such as consumer- or business- oriented distribution packaging, order fulfillment and order shipping.
  • 11. 5 Business Model The business model for distributors is to buy products from a manufacturer at a low price and sell it to retailers or end users at a higher price. In order to maximize profit, the distributor must enter into supply agreements offering low purchase prices for a high markup while focusing on operational efficiencies to keep costs low. Challenges for Distributors Distributors in the fitness and combat sports industry are facing a rapidly changing landscape that presents unique challenges. With the rise of inventory management, e-commerce, demanding customers, being environmentally sustainable and disintermediation, distributors must adapt to these changes or risk being left behind. Challenge #1: Inventory Management Challenge #2: E-commerce Takeover Challenge #3: Demanding Customers Challenge #4: Disintermediation
  • 12. 6 Challenge #1: Inventory Management Distributors must find a way to accurately forecast demand and manage their inventory levels to avoid stockouts or overstocks, which can lead to lost sales and increased costs. Overstocking can lead to increased warehousing costs, obsolescence, and the need for markdowns to move excess inventory. On the other hand, understocking can lead to missed sales opportunities, dissatisfied customers, and damage to the distributor's reputation. The challenge is to maintain the right level of inventory to meet customer demand while minimizing the costs of carrying inventory. To achieve this, distributors need to implement efficient inventory management practices, including demand forecasting, inventory optimization, and supply chain management. These practices involve analysing sales data, monitoring product demand, and using automation and data analytics tools to make informed inventory decisions. This system can help distributors identify which products are selling well and which ones are not, allowing them to adjust their inventory levels accordingly. Overall, effective inventory management is crucial for modern distributors to remain competitive and profitable in the ever-changing business landscape.
  • 13. 7 Challenge #2: E-commerce Takeover According to The Future of Commerce, "Nearly 21% of distributors say e-commerce sales account for 20% to 30% of total revenues, a trend that’s likely to continue and even expand." Distributors are now competing with online retailers who can offer lower prices, wider selection, and faster delivery. To stay competitive, distributors must adapt to the changing landscape and find ways to provide value that e-commerce cannot. One solution is to develop a strong online presence and e-commerce platform of their own. By creating a user-friendly website and offering online purchasing options, distributors can provide the convenience customers are looking for while retaining their customer base. Additionally, distributors can use their brick-and-mortar stores as a competitive advantage by offering services and experiences that e-commerce cannot, such as personalized customer service, product demos, and in-store events. Another solution is to form strategic partnerships with e-commerce retailers, using their distribution networks to reach a wider audience. This can help to mitigate the competitive threat of e-commerce while also opening up new business opportunities. Ultimately, the key to success in the face of an e-commerce takeover is to stay flexible and adaptable, constantly assessing the changing landscape and finding new ways to provide value to customers.
  • 14. 8 Challenge #3: Demanding Customers In today's highly competitive marketplace, customers have become more demanding, expecting faster, more efficient, and more personalized services. This has created a significant challenge for modern distributors who are struggling to keep up with the ever-increasing demands of their customers. With the rise of e-commerce giants such as Amazon and the prevalence of same-day delivery options, customers have become accustomed to receiving their products quickly and efficiently. This means that distributors must focus on delivering an exceptional customer experience that meets and exceeds these expectations. This includes providing a seamless online purchasing experience, offering fast and reliable shipping options, providing excellent customer service, and offering personalized recommendations and product offerings. To meet these demands, modern distributors are turning to technology solutions such as customer relationship management (CRM) software, order management systems, and e- commerce platforms that allow them to streamline their operations, improve their logistics, and better manage their inventory. For distributors this means that they must find ways to reduce their environmental impact, such as using eco-friendly materials in their products, optimizing their shipping processes to reduce emissions, and implementing sustainable packaging practices. By leveraging these technologies, distributors can provide a better customer experience while also reducing costs and improving efficiency.
  • 15. 9 Challenge #4: Disintermediation Disintermediation is the process of removing intermediaries between producers and consumers. To remain relevant, distributors must add value by offering specialized services, such as assembly, installation, and maintenance which manufacturers may not be equipped to provide. Disintermediation is a challenge facing modern distributors that occurs when customers buy directly from manufacturers or suppliers, bypassing the traditional distribution channels. This trend has been facilitated by advances in technology and the growth of e-commerce platforms. As a result, distributors are facing increasing competition from both manufacturers and e- commerce platforms, which can lead to a decrease in sales and revenue. To counter this challenge, distributors must focus on building strong relationships with their customers and adding value to the products they provide, as well as investing in their own e- commerce capabilities to stay competitive. You, as a distributor, must now aim to provide services that a manufacturer simply wouldn’t be able to, such as VMI (Vendor Managed Inventory) tools which automate elements of distribution, thereby saving the retailer valuable time and money. Additionally, some distributors may need to reconsider their business models or product adapt to the changing market landscape.
  • 16. 10 The 5 Ways to Grow Your Distribution Business Following a formal plan will surely help you achieve the best in the business world. Here’s a quick look at some of the key aspects that distributors should keep in mind to make the most of the emerging opportunities and also fight odds that can end up becoming setbacks. 1. Pave the Road to Improving Customer Service With trade and communication barriers faltering globally, the number of alternative supply sources has kind of exploded. Adding to this is the increased cost pressure from low-cost countries and strict margins in multiple distribution sectors. Responding to this, a growing number of successful distributors are now offering a broad range of services to the customers/clients. This has further helped the distributors increase their margin points significantly. Alternatively, there are several other ways through which distributors can look forward to strengthen their customer relationships. For instance, a distributor from Midwest established an online catalog tool that skillfully adapts for each customer based on the history of purchase. Additionally, the online catalog tool also provides order status and real-time inventory. This self-service online ordering tool and product information catalogue allows salesperson to spend their time by finding a solution to critical customer issues, routing issues of lower level directly to sales support and also paving the road to new and emerging opportunities. Distribution business has greatly benefited through the advancement in technology as it ensures improved visibility to sales management and strategic development of the sales force. 2. Ensure Better Management of Business Complexity A number of distribution businesses today focus on performing daily routine activities without any change or evolution in the process. Beginning the day with the same process and performing repetitive tasks to managing sales and order flows has become a habit for the salesperson of today. Another issue that emerges in the distribution sector is that the businesses is adopting a technology solution that cannot adapt to or seamlessly incorporate with supplier and customer systems. With distribution companies growing through acquisition, corporate cultures, connecting new branches, and logistics operations, sales processes often gets tough. With
  • 17. 11 businesses juggling a number of complex processes at the same time, employee productivity is largely compromised. Incorporating the right technology can help the distributors operate across several locations thereby, allowing the sales team to address other business concerns and crucial business needs. Tools that are especially designed for information sharing largely helps the distributors improve communication and enhance visibility for the company. This further helps the distributors to stay ahead of the competitors in the global market. What helps them achieve this goal is fast, prompt, and responsive service against the odds of the changing market dynamics. 3. Encourage the Practice of Attracting Employees of High Value The distribution business is a tough nut to crack. Therefore, the catch lies in retaining high- value employees. Moreover, with technology making supply chain processes strict, talent will over time emerge as the crucial factor for distributors. With the competition getting tough, you cannot risk anything as your competitors in the field are surely focusing on training the next- gen employees. The three ‘Ps’ here are important as a number of distribution operations involve low adding and repetitive activities like fulfilment, transaction processing, and logistics and warehouse management. Distributors that can manage freeing their employees always ensure focusing on high-value activities like resolving customer issues, strengthening relationship between customer/vendor, and adapting to new solutions. All these further help the distributors to work continuously on process improvement keeping in focus every aspect of business. 4. Keep Stock of Business Building Blocks In today’s age where finding a lower price for a product/service is easy, world-class customer service can act as the only differentiating factor. If your employees ever come across the feeling of running actively just to keep pace with the daily sales volume, you must understand that everybody else is too caught up in the process of business complexity, which further makes you overlook tasks and other risk factors associated with the same. Being in the business, you should take up every effort to hire motivated and productive employee who can assuringly help you take your business to another level.
  • 18. 12 The three ‘P’s’ i.e. productivity, process, and profitability are the key determining factors of professionally managed companies in any business sector. The catch lies in planning strategically and executing the tasks purposefully to reach the next step of success level. The most common denominator of success for distribution businesses rest with integrating the right technologies and processes into the business at the right time. This allows the employees to create or establish customer centric solutions that can actually take the business way beyond what it is now. 5. Ensure Integrating Value-Adding Services According to researches, it has also been noted that incorporating some value adding services can help the distributors grow their business radically. Here’s a quick look at the aspects that boost business growth or improve sales opportunities – • Premiums & Incentives • Graphics and Printing • Merchandise Programs • Packaging • Fulfilment • Direct Mail • Event Management Most of the distributors usually plan around things that have happened at least a year before, which further helps adding a growth percentage according to the market indicators. The risk that is persistent with this particular methodology is that as consolidation of industry continues, incremental improvements in business is not just the thing that would help you to stay ahead of competitors and gain an edge in the market. The fact is that sustainable growth can only be achieved by adopting a strategic approach that allows the distributors to make use of available technology for creating a niche in the global market. Factors Influencing Choice of Distribution Channel –Nature of Product, Market, Size of Business, Cost of Channel, Nature of Middlemen. 1. Nature of Product: The nature of the product has a bearing on the choice of distribution channel. The durability of the product, unit cost of product, type of product must be considered while
  • 19. 13 determining the distribution channel. Perishable goods like bread, milk are distributed through short channels, while durable goods like television, refrigerator may be marketed through long channels. Products that require specialized selling and technical skill need short channel. Products with lesser unit value and high turnover are distributed by employing longer channels of distribution. Household products like utensils, cloth, cosmetics etc. are distributed through longer channel while products like jewelry having high product value are directly sold to the consumers by the jewelers. 2. Nature of Market: The geographical width of the market, number of potential buyer, nature of competition has a bearing on selection of distribution channel. In case of industrial markets where number of buyers is less; a shorter channel of distribution can be adopted. These buyers usually purchase directly from the manufacturers. But in case of consumer markets, where there are a large number of buyers, a longer channel of distribution is employed as distribution process cannot be effectively carried out without the services of wholesalers and retailers. If the manufacturer wants to reach customers who are concentrated at one particular place or market, distribution channel will be short and the manufacturer can directly supply the goods in that area by opening his own shops or sales depot. While if the buyers are widely scattered, it is very difficult for the manufacturer to establish a direct link with the consumers, hence services of wholesalers and retailers will be used. 3. Size of Business: The size of the business, financial strength of the concern determines the channel of distribution. A small manufacturer may sell his product directly. While a large manufacturer may use a longer distribution channel. If the manufacturer wants to control the entire distribution process, it will prefer direct selling or adopt short distribution channel.
  • 20. 14 4. Cost of Channel: Distribution process involves cost of transportation, warehousing, storage insurance, material handling, distribution personnel’s compensation and interest on inventory carried at different selling points. Higher cost of distribution will result in the increased cost of product. On the other hand, the services delivered by the distribution channel intermediaries may be indispensable. Hence the marketer must carry out a cost benefit analysis while selecting the distribution channel. 5. Nature of Middlemen: The manufacturer must select those middlemen who provide the best marketing services like storage, transportation, credit and packing etc. At the same time the middlemen should ensure various services to customers. A manufacturer would like to appoint that middlemen who assure greater sales volume. In appointing middleman, the manufacturer must take into consideration the financial stability and reputation of the middleman. A financially sound middleman can provide credit facilities to customers and make prompt payment to the manufacturer. 6. Distribution Intensity: The selection of distribution channel depends upon the intensity of distribution. If the marketer intends to undertake extensive distribution will make his products available through all distribution outlets, if the manufacturer intends to undertake selective distribution will make products available through few selected outlets. If the manufacturer intends to undertake exclusive distribution will make the products available thorough one outlet. 7. Time of Distribution: The selection of distribution channel depends upon time taken by the distribution channel. The manufacturer needs to compare the time taken by different distribution channels and should select the one that takes minimum time for delivery of goods to customers. 8. Government Policy: Government policies and regulations also influence the choice of distribution channels. The Government may impose certain restrictions on distribution of certain products like wine, narcotic goods.
  • 21. 15 9. Competition: The distribution channel used by the competitors determines the channel of distribution to be adopted. Five Effective ways to improve Distribution are: • Offer value added services Investors seek comfort in dealing with a single advisor for all their financial needs. Further, he said that every financial product is an opportunity for MFDs to explore. MFDs must strive to create a basket of products that can meet varying investor needs. Also, they should include other solutions like tax planning and estate planning through strategic tie-ups. • Professional set-up MFDs must have complete control over their business and should focus on offering solutions rather than products. Having an office address, a team and a mentor are a few tips here. Given the existence of multiple other players in the market, a professional set-up brings MFDs to the same space which is otherwise mainly dominated by bigger players. • Business succession MFDs must communicate their succession plans to their clients from the very first day. Ideally, MFDs must involve their family members in the business. However, in case their family is not keen to join, they can plan their succession strategically with other like-minded and trustworthy distributors or employees. • Make investing experience seamless With the advent of technology, client expectations have increased further. They seek prompt replies and quicker services. MFDs should leverage technology and create a seamless investing experience. Apart from online transactions, the focus must be on offering easy solutions like single click account summaries, easy to consume content, referrals messages allowing clients to refer an MFD (like other mobile apps) and so on.
  • 22. 16 • Staying in touch with clients Newsletters, articles and social media engagement can be time consuming and it is difficult to evaluate if such an engagement yield results. Hence, MFDs should simply stick to physical meetings and phone calls to stay in touch with clients. People value personal interaction. MFDs can create deep and meaningful bonds with their clients simply by talking to them once every month. This creates a base of loyal and satisfied clients, which in turn attracts more referrals. Distributors have not only survived but thrived during the pandemic. Various timely actions have given important lessons like, to survive in such crucial time ‘adaptability’ is the key.
  • 23. 17 CHAPTER 3 3 C Analysis Company Analysis WPG Holdings the global leading and the largest electronics distributor in Asia*, headquarters in Taipei, Taiwan (TSE:3702). WPG is operating through four semiconductor components distributors (WPIg, SACg, AITg, and YOSUNg) serves as a franchise partner for about 250 worldwide suppliers. With 5,000 staff in 77 sales offices around the world, WPG achieved US$25.97 billionin 2022 revenue. WPG, the first holding company in semiconductor components industry, has the global operation, local flexibility and long-term development in Asia-Pacific Market. With our vision “the First Choice of Industry • the Benchmark of Distribution”, and shared values “Teamwork, Integrity, Professionalism and Effectiveness”. we have been awarded by “Outstanding International Branded Distributor Award” for 22 consecutive years. Under the new manufacturing trend, we are committed to transforming into a Data-Driven enterprise and build an online digital platform - WPG DADAWANT. We are positioned as a LaaS (Logistics as a Service) provider to advocate smart logistics and assist our customers in facing the challenges of smart manufacturing. WPG expected to build trust with technologies and build a co-opetition eco- system together with the industry through “alliances”. Moreover, we proactively promote the digital transformation based on the principle of “customer orientation, technology empowerment, collaborative ecosystem and era co-creation”. (*Source: Ranked by Gartner Research Mar, 2023) To Become the First Choice of Industry. To Become the Benchmark of Distribution. At WPG Holdings, we serve our partners with delighted spirits to enhance valuable, long- lasting partnerships through “co-opetition” model.
  • 24. 18 Shared Values Teamwork: Best interests of WPG are always the first. (Should there be a conflict of interests, groups' benefits take priority over personal bias, prejudice and motivation.) Accelerate integration of same function teams among companies and regions. Prevail no prejudices in nationalities or regions, but balanced interests and fairness. Professionalism: To become the first choice of stakeholders including clients, vendors and shareholders. To construct a learning environment where individuals and groups continually enhance skill. To focus on core operation and implement strictly. Effectiveness: Highlight on output, the quantity of capacity and balance of both. Set quantifiable objectives, be strict on details, do execute, and fulfill tasks. Set standard operating procedure to avoid same mistakes. Products and Services Integrated Circuits (ICs) Microcontrollers, processors, memory chips, and other ICs from various manufacturers An integrated circuit (IC), sometimes called a chip, microchip or microelectronic circuit, is a semiconductor wafer on which thousands or millions of tiny resistors, capacitors, diodes and transistors are fabricated. An IC can function as an amplifier, oscillator, timer, counter, logic gate, computer memory, microcontroller or microprocessor. An IC is the fundamental building block of all modern electronic devices. As the name suggests, it's an integrated system of multiple miniaturized and interconnected components embedded into a thin substrate of semiconductor material (usually silicon crystal).
  • 25. 19 A single IC could contain thousands or millions of: • transistors • resistors • capacitors • diodes Additional components may also reside on it, all interconnected through a complex web of semiconductor wafers, silicon, copper and other materials. Size-wise, each component is small, usually microscopic. The resulting circuit, a monolithic chip, is also tiny -- often just enough to occupy a few square millimeters or centimeters of space. One common example of a modern-day IC is the computer processor, which typically contains millions or billions of transistors, capacitors, logic gates, etc., connected together to form a complex digital circuit. Although the processor is an IC, not all ICs are processors. History and evolution of integrated circuits The invention of the transistor -- a combination of the words transfer and resistor -- in 1947 set the stage for the modern computer age. In the early days, each transistor came in a separate plastic package, and each circuit consisted of discrete transistors, capacitors and resistors. Due to the large size of these components, early ICs were only capable of holding a few of them -- wired together -- on the circuit board. Over time, the development of solid-state electronics made it easier to reduce the size of components. In the late 1950s, inventors Jack Kilby of Texas Instruments, Inc., and Robert Noyce of Fairchild Semiconductor Corporation found ways to lay thin paths of metal on devices and have them function as wires. Their solution to the problem of wiring between small electrical devices was the beginning of the development of the modern IC.
  • 26. 20 Modern integrated circuits: Design and construction For the past half-century, ICs have progressed enormously with faster speeds, greater capacity and smaller sizes. Compared to the early days, today's ICs are unbelievably complex, capable of holding billions of transistors and other components on a single small piece of material. The modern IC is all one piece, with individual components embedded directly into the silicon crystal, rather than simply mounted on it. An IC relies on multiple levels of abstraction. The semiconductor wafer that makes up the IC is fragile and contains numerous intricate connections between its many layers. A combination of these wafers is known as a die. With millions or billions of components on one single chip, it's not possible to position and connect each component individually. Dies are too small to solder and connect to. Instead, designers use a special-purpose programming language to create small circuit elements and combine them to progressively increase the size and density of components on the chip to meet application requirements. The ICs are "packaged" to turn the delicate and tiny die into a black chip that now forms the basis of hundreds of devices, including: • computers • mobile phones and smartphones Microprocessors and ICs The microprocessor is the most complicated type of IC, capable of performing billions of operations per second. In a computing device, a microprocessor contains the central processing unit (CPU) which runs a computer or the graphics processing unit (GPU), which specializes in the rendering images and video. A single microprocessor contains billions of interconnected transistors, each of which performs a specific logic function based on instructions from the clock.
  • 27. 21 Passive Components: Capacitors, resistors, inductors, and other passive electronic parts. The circuit element which can only absorb electrical energy and dissipates it in the form of heat or stores in either magnetic field or electric field is known as passive circuit component or simply passive component. Therefore, a passive component cannot provide electric power or power amplification in an electric circuit. Some common examples of passive circuit components are resistor, inductor, capacitor and transformer, etc. A circuit element which only absorbs the power and convert it in heat or stores in electric field or magnetic field is known as passive component. The examples of passive components are resistor, inductor, capacitor and transformer, etc. Passive components cannot provide power gain. Passive components receive electrical energy and either convert it in the other forms such as heat, light, rotation, etc. or store in the magnetic field or electric field. The passive components cannot control the current flow in the circuit. The slope of VI characteristics curve (i.e. the ratio of voltage to current) of a passive component is positive at all the points. The VI curve of the passive elements lies in the 1st and 3rd quadrant. A passive element can only absorb electrical power. It is not capable for deliver power. Passive components do not require any external power source to function. The passive components such as resistor, inductor, capacitor, etc. do not require any source of electricity to function, they use some other property to control the power in the circuit. For passive components, the power gain is less than unity, hence they cannot amplify a signal. Passive components by considering various parameters such as basic definition, function, power gain or amplification, current flow, components role in the circuit, etc. Both active and passive components are the most basic elements of an electrical or electronic circuit.
  • 28. 22 Supply Chain Management: Understanding customer demand and forecasting future requirements is critical for supply chain management. WPG likely analyzes its customers' demand patterns to ensure adequate inventory levels and efficient distribution of electronic components. Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings. Typically, SCM attempts to centrally control or link the production, shipment, and distribution of a product. By managing the supply chain, companies can cut excess costs and deliver products to the consumer faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales, and the inventories of company vendors. SCM is based on the idea that nearly every product that comes to market results from the efforts of various organizations that make up a supply chain. Although supply chains have existed for ages, most companies have only recently paid attention to them as a value-add to their operations. 5 Parts of SCM The supply chain manager tries to minimize shortages and keep costs down. The job is not only about logistics and purchasing inventory. According to Salary.com, supply chain managers “oversee and manage overall supply chain and logistic operations to maximize efficiency and minimize the cost of organization's supply chain."
  • 29. 23 Planning: To get the best results from SCM, the process usually begins with planning to match supply with customer and manufacturing demands. Firms must predict what their future needs will be and act accordingly. This relates to raw materials needed during each stage of manufacturing, equipment capacity and limitations, and staffing needs along the SCM process. Large entities often rely on ERP system modules to aggregate information and compile plans. Sourcing: Efficient SCM processes rely very heavily on strong relationships with suppliers. Sourcing entails working with vendors to supply the raw materials needed throughout the manufacturing process. A company may be able to plan and work with a supplier to source goods in advance. However, different industries will have different sourcing requirements. In general, SCM sourcing includes ensuring: The raw materials meet the manufacturing specification needed for the production of goods. The prices paid for the goods are in line with market expectations. The vendor has the flexibility to deliver emergency materials due to unforeseen events. The vendor has a proven record of delivering goods on time and in good quality. Supply chain management is especially critical when manufacturers are working with perishable goods. When sourcing goods, firms should be mindful of lead time and how well a supplier can comply with those needs. Manufacturing: At the heart of the supply chain management process, the company transforms raw materials by using machinery, labour, or other external forces to make something new. This final product is the ultimate goal of the manufacturing process, though it is not the final stage of supply chain management.
  • 30. 24 The manufacturing process may be further divided into sub-tasks such as assembly, testing, inspection, or packaging. During the manufacturing process, a firm must be mindful of waste or other controllable factors that may cause deviations from original plans. For example, if a company is using more raw materials than planned and sourced for due to a lack of employee training, the firm must rectify the issue or revisit the earlier stages in SCM. Delivering: Once products are made and sales are finalized, a company must get the products into the hands of its customers. The distribution process is often seen as a brand image contributor, as up until this point, the customer has not yet interacted with the product. In strong SCM processes, a company has robust logistic capabilities and delivery channels to ensure timely, safe, and inexpensive delivery of products. This includes having a backup or diversified distribution methods should one method of transportation temporarily be unusable. For example, how might a company's delivery process be impacted by record snowfall in distribution centre areas? Returning: The supply chain management process concludes with support for the product and customer returns. It’s bad enough that a customer needs to return a product, and it’s even worse if it’s due to an error on the company's part. This return process is often called reverse logistics, and the company must ensure it has the capabilities to receive returned products and correctly assign refunds for returns received. Whether a company is performing a product recall or a customer is simply not satisfied with the product, the transaction with the customer must be remedied. A supply chain is the network of individuals, companies, resources, activities, and technologies used to make and sell a product or service. A supply chain starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer.
  • 31. 25 Customer Analysis: Customer Segmentation: Companies like WPG Holdings often analyse their customer base to segment it based on various criteria. This may include industry, geographical location, purchasing behaviour, size, and other relevant factors. By segmenting their customers, WPG can better understand the different needs and preferences of various groups, enabling them to tailor their services accordingly. Customer segmentation is the practice of dividing a company’s customers into groups that reflect similarity among customers in each group. The goal of segmenting customers is to decide how to relate to customers in each segment in order to maximize the value of each customer to the business. Customer segmentation analysis is the process performed when looking to discover insights that define specific segments of customers. Marketers and brands leverage this process to determine what campaigns, offers, or products to leverage when communicating with specific segments. For example, a retail brand looking to determine how to reactivate lapsed customers might create a segment of customers who purchased in the past and haven’t purchased or browsed the eCommerce store in the past 30 days. It might then analyze that segment to understand what type of products these customers have purchased in the past, what is their discount affinity and more. Using this information, the marketing team can determine the best campaign to create in order to reactivate these lapsed customers. Customer segmentation has the potential to allow marketers to address each customer in the most effective way. Using the large amount of data available on customers (and potential customers), a customer segmentation analysis allows marketers to identify discrete groups of customers with a high degree of accuracy based on demographic, behavioral and other indicators. Since the marketer’s goal is usually to maximize the value (revenue and/or profit) from each customer, it is critical to know in advance how any particular marketing action will influence
  • 32. 26 the customer. Ideally, such “action-centric” customer segmentation will not focus on the short- term value of a marketing action, but rather the long-term customer lifetime value (CLV) impact that such a marketing action will have. Thus, it is necessary to group, or segment, customers according to their CLV. Of course, it is always easier to make assumptions and use “gut feelings” to define rules which will segment customers into logical groupings, e.g., customers who came from a particular source, who live in a particular location or who bought a particular product/service. However, these high-level categorizations will seldom lead to the desired results. It is obvious that some customers will spend more than others during their relationship with a company. The best customers will spend a lot for many years. Good customers will spend modestly over a long period of time, or will spend a lot over a short period of time. Others won’t spend too much and/or won’t stick around too long. The right approach to segmentation analysis is to segment customers into groups based on predictions regarding their total future value to the company, with the goal of addressing each group (or individual) in the way most likely to maximize that future, or lifetime, value. Once you decide the best categories and attributes to base your customer segments on, you must decide what approach you will use to create those segments. The two most common approaches to segmenting customers are rule-based segmentation and cluster-based segmentation. Rule-based segmentation focuses on setting thresholds to determine what segment a customer should be a part of. The approach segments customers based on a set of rules. The rule-based segmentation approach is a simple way to categorize customers into segments but requires you to determine the attributes used to segment customers each time. It makes it easier to watch trends by looking at how many customers you have in each group. It is difficult to add new attributes, so using the rule-based segmentation approach requires a lot of work to keep segments updated if customers’ behaviors change.
  • 33. 27 Instead of setting thresholds to divide customers, cluster-based segmentation identifies the best way to segment customers so the segments are as equal as possible. It shows the relationship between data points so they can be put into customer segments. Cluster-based segmentation creates these groups using a K-means algorithm. The cluster-based segmentation approach allows you to find new insights in your data to create segments you did not know existed. It also can put customers into segments using multiple attributes. While cluster-based segmentation provides more segmentation capabilities with little maintenance, it is a difficult approach to set up without a talented data scientist. Accurate customer segmentation involves tracking dynamic changes, and frequently updating new data. Although segmenting customers according to their CLV is the recommended approach, there are many types of customer segmentation models. Some of the more common types are segmentation via cluster analysis, RFM segmentation, and longevity. Some marketers might even combine one or more segmentation models in order to reach their goals. Customer Needs and Preferences: Understanding customer needs and preferences is crucial for any company's success. WPG likely conducts surveys, gathers feedback, and analyzes customer data to gain insights into what their customers value, how they make purchasing decisions, and what challenges they face. • Friendliness: This is the most basic customer need that's associated with things like courtesy and politeness. Friendly agents are a top indicator of a good customer experience, according to the customers surveyed in our 2021 Trends Report. • Empathy: Customers need to know the organization understands and appreciates their needs and circumstances. In fact, 49% surveyed in our 2021 Trends Report said they want agents to be empathetic.
  • 34. 28 • Fairness: Customers must feel that they're getting adequate attention and fair and reasonable answers. • Control: Customers want to feel like they have an influence on the outcome. You can empower your customers by listening to their feedback and using it to improve. • Alternatives: Customers want choice and flexibility from customer service; they want to know there is a range of options available to satisfy them. In fact, high-performing companies are more likely to provide customers with a choice of customer service channels. 50% of high performers have adopted an omnichannel support strategy, compared to 18% of their lower-performing peers. • Information: Customers want to know about products and services in a pertinent and time-sensitive manner; too much information and selling can be off-putting for them. A knowledge base is a great way to provide existing customers with the information they need, when they need it. And high-performing CX teams are more likely to offer a knowledge base, according to our research. • Time: Customers’ time is valuable and organizations’ need to treat it as such. 73% of customers said resolving their issues quickly is the top component of a good customer experience. To deliver on that expectation, CX teams need customer service software that arms them with tools to respond to customers quickly and effectively. Customer Satisfaction and Loyalty: Monitoring customer satisfaction and loyalty is vital for any business. Companies often use metrics like Net Promoter Score (NPS) or Customer Satisfaction (CSAT) scores to measure how satisfied their customers are and identify areas for improvement.
  • 35. 29 Customer satisfaction (CSAT) is a measure of how well a company’s products and services meet customers’ expectations. It reflects your business’ health by showing how well your products are resonating with buyers. Customer satisfaction can seem like a vague concept, but there are concrete ways to measure it. You can source a customer satisfaction score by conducting CSAT surveys, for example. These are typically short, one- to two-question surveys offered at the end of a business transaction. A classic question is “How satisfied are you with the product?” with answers ranging from “very satisfied” to “very unsatisfied.” Although CSAT is one part of customer satisfaction, it is far from the only measure. Businesses also use Net Promoter Score (NPS) surveys to determine whether their customers are promoters, detractors, or passives. Customer satisfaction measures how happy a customer was with a support interaction or a purchase. Customer loyalty, on the other hand, is an ongoing state. Loyal customers give a company their repeat business over time. It’s not a short-term measure, but rather a long-term understanding of the health of your customer relationship. When you create and maintain a customer experience that resonates with buyers, customers return again and again. Ensuring high customer satisfaction in the short term is a key component of gaining that long-term customer loyalty. It drives customer Loyalty: Satisfied customers tend to share their positive experiences with friends and family. But the opposite is also true: An unhappy customer tells more people about their negative experiences than a happy customer does. Customer satisfaction metrics reflect your support team’s Performance Customer satisfaction benchmarks and metrics do not just help you gauge how happy your audience is—they also tell you how your support team is doing.
  • 36. 30 It encourages repeat purchases: A satisfied customer is a loyal customer, who will stick with your company year after year. So, how do you get those repeat customers? By hitting your customer support efforts out of the park. Our trends report agrees: 57 percent of consumers say excellent customer service is a factor in their brand loyalty. It increases customer lifetime value: 75 percent of customers are willing to spend more to buy from companies that give them a good customer experience, according to our Trends Report. Satisfied customers are not only more likely to remain loyal and less likely to churn, they are also more likely to spend more money with your business. It boosts new customer acquisition: At the onset of the pandemic, companies with the most satisfied customers were also 3.3x more likely to have grown their customer bases. Customer service is not just important for supporting existing customers, it is also key to bringing in potential customers and supporting them when they reach out. If a prospect does not have a positive experience when they interact with your support team, they will be less likely to purchase. The main difference between service today and service 10 years ago is that customers expect premium service to be built-in from the first sales or marketing interaction and carry through to the moment they ask for help, post-purchase and back again. To position themselves for success, businesses must integrate service into the journey at every interaction point. How to achieve customer satisfaction • Become obsessed with customer feedback • Create a sense of convenience • Deliver fast responses • Make customer satisfaction a company- wide focus • Lead with Empathy
  • 37. 31 Competitor Analysis Analyzing the competition is essential to stay ahead in the market. WPG Holdings would likely analyze its competitors' customer base, product offerings, pricing strategies, and service levels to identify areas where they can differentiate themselves and provide better value to their customers. A competitor analysis, also referred to as a competitive analysis, is the process of identifying competitors in your industry and researching their different marketing strategies. You can use this information as a point of comparison to identify your company’s strengths and weaknesses relative to each competitor. You can do a competitor analysis at a high level, or you can dive into one specific aspect of your competitors’ businesses. This article will focus on how to conduct a general competitive analysis, but you’ll want to tailor this process to match the needs and goals of your business. Knowing your company’s strengths can inform your positioning in the market, or the image of your product or service that you want members of your target audience to have in their minds. It’s essential to clearly communicate to potential customers why your product or service is the best choice of all those available. Being aware of your company’s weaknesses is just as important in helping your business grow. Understanding where you fall short of your customers’ expectations can help you identify areas where you may want to invest time and resources. You might learn that customers prefer your competitors’ customer service, for example. Study your competition to find out what they’re doing right, and see what you can apply to your business. Conducting a thorough assessment of what your competitors offer may also help you identify areas where your market is underserved. If you find gaps between what your competitors offer and what customers want, you can make the first move and expand your own offerings to satisfy those unmet customer needs.
  • 38. 32 Studying the competition can also help you see which way the industry as a whole is moving. However, you should never do something just because your competitors are doing it. Copying the competition without really considering your own place in the market rarely, if ever, leads to success. When doing a competitor analysis, you should include companies that are both larger and smaller than your own. Studying well-established businesses in your industry can give you a model of what success looks like and a reference point against which to compare your future growth. On the other hand, researching new entrants into your industry tells you what companies may threaten your market share in the future. Arrow Electronics, Inc.: Arrow Electronics is one of the largest global distributors of electronic components and enterprise computing solutions. It operates in multiple regions and serves a wide range of industries. Arrow Electronics was founded in 1935 when a retail store named Arrow Radio opened on Cortlandt Street in the heart of lower Manhattan’s “Radio Row,” the birthplace of electronics distribution. Arrow Radio, established by Maurice (“Murray”) Goldberg, sold used radios and radio parts to retail customers. Other industry pioneers with businesses nearby were Charles Avnet and Seymour Schweber. Michael J. Long succeeded Mitchell as CEO in 2009, becoming chairman in 2010. A seasoned executive, long served at Schweber Electronics from 1983 to 1990 before joining Arrow in 1991 with the merger of both companies. He served in a number of increasingly senior management positions with Arrow before becoming CEO and leading the company through a decade of growth that saw over 40 strategic acquisitions and the expansion of its global components and computer systems businesses. On June 1, 2022, Sean J. Kerins succeeded long as president and CEO. Kerins joined Arrow in 2007 as vice president of storage and networking, North America, for the company’s enterprise computing solutions business. He went on to become regional
  • 39. 33 president before being named global president of the business in 2014 and then Arrow’s chief operating officer in 2020. Avnet, Inc.: Avnet is another major player in the electronic component’s distribution space, offering a comprehensive portfolio of products and supply chain solutions to customers worldwide. Avnet is a global electronic components distributor with extensive design, product, and marketing and supply chain expertise for customers and suppliers at every stage of the product lifecycle. For the past 100 years, Avnet has helped its customers and suppliers around the world realize the transformative possibilities of technology. Our culture was founded on new ideas and emerging technology. Headquartered in Phoenix, Arizona, Avnet is a top 3 global distributor of electronic components, with FY21 revenue of $19 billion. Avnet serves more than 300 suppliers and 100,000 customers worldwide with operations in more than 300 locations and 140 countries in North America, Europe/Middle East/Africa (EMEA), and Asia- Pacific. TTI specializes in electronic component distribution, offering a broad range of products and value-added services to OEMs and EMS providers. TTI, Inc. a Berkshire Hathaway company, is an authorized specialty distributor of interconnect, passive and electromechanical components and the distributor of choice for electronics manufacturers worldwide. TTI, Inc. is a specialty distributor of passive, interconnect, electromechanical and discrete components that exists to accomplish three major goals: Be the most preferred electronics distributor for our customers and suppliers, delivering the right parts exactly on time. Exceed our internal and external customer requirements through continuous improvement. Provide a home for hardworking, dedicated, knowledgeable and ethical people who believe in this Company and this philosophy.
  • 40. 34 Digi-Key Electronics: Digi-Key is an electronics distributor known for its extensive online catalog and efficient fulfillment processes. It caters to a global customer base. With great respect for the identity that helped establish Digi Key across the globe, we are reimagining and refreshing our logo and our branding. The unique new look and tone have been designed to emphasize our ongoing connection with suppliers and customers, while reflecting Digi Key’s digital-first, forward-looking perspective. Future Electronics: Future Electronics is a global distributor of electronic components with a broad product portfolio and a strong focus on providing engineering support and design services to customers. Future Electronics’ strong global presence and success is established through world-class supply chain solutions, market intelligence, engineering expertise, a dedicated sales team just a click or call away, and the innovative products to bring product ideas to life. With worldwide headquarters in Montreal, Quebec, Canada, our diverse global team makes Future Electronics one of the most reputable companies in the industry. Supply Chain experts have the knowledge and experience to assist you in implementing an effective and balanced model focused on security of supply. Many companies today offer supply chain management - we believe in giving you much more than mere management tools. Future Electronics is uniquely positioned to offer a comprehensive range of services and innovative solutions to develop a powerful, customized program tailored especially for your needs and goals, to truly transform your supply chain.
  • 41. 35 Mouser Electronics: Mouser is an electronic component distributor that emphasizes rapid delivery and offers a wide range of products for various industries. Mouser Electronics is a global authorized distributor of semiconductors and electronic components for over 1,200 industry-leading manufacturer brands. We specialize in the rapid introduction of the newest products and technologies targeting the design engineer and buyer communities. Rutronik Elektronische Bauelemente GmbH: Rutronik is a leading distributor of electronic components and embedded solutions, with a strong presence in Europe and expanding global operations. The broad product range includes semiconductors, passive and electromechanical components as well as embedded boards, storage technologies, displays, and wireless products. Customers also have access to the Rutronik24 e-commerce platform, where all articles can be found. In addition to its comprehensive line of components, Rutronik delivers consulting services for technical, commercial, and logistical issues for its customers as well as unparalleled service and technical support with a consistently high level of quality to its customers worldwide. The market for electronic components places the highest of demands on logistics. On the one hand, broad liners need to cope with widely differing volumes of product quantities from a huge product range. Premier Farnell (part of Avnet Group): Premier Farnell, operating under Avnet Group, is a distributor of electronic components, focusing on providing design and engineering solutions.
  • 42. 36 80 years in high-service electronics components distribution, Farnell’s global businesses distribute a comprehensive portfolio of products, supported by an international supply chain and an inventory profile developed to anticipate and meet its customers' needs. Experience working with the largest manufacturers designing and manufacturing development kits and boards, provides customers of all sizes with experience which can be applied at any stage to accelerate time to market – from research and design support, to prototype and test right through to production services. This extensive range of products and services is delivered by 3,300 employees in 60 countries as Farnell in EMEA, Newark in North America and element14 in Asia Pacific. Consumers in the UK can purchase from its CPC business. Farnell has over 950,000 products in stock covering 2,000 manufacturer brands and supplying over two million customer contacts in more than 150 global industries.
  • 43. 37 CHAPTER 4 Organizational Structure/ Departments Profile. 1. Auditing Office Responsible for conducting audits for the effectiveness of internal regulations and institutional implementation for WPG holdings. Also make improvement recommendations based on the results. 2. F&A Service and Spokesperson Responsible for matters related to finance and accounting for WPG Holdings, as well as maintaining relationship with investors. Also bear the responsibility of management control, policy guidance and supervision of each group's corresponding functions. The CFO also serves as the Company Spokesperson.
  • 44. 38 3. IT Service Responsible for matters related to information technology for WPG Holdings, as well as its management, strategy planning, and continuous developing and optimizing of information system platform. Also bear the responsibility of management control, policy guidance and supervision of each group's corresponding functions 4. HR Service Responsible for matters related to human resources for WPG Holdings. Also bear the responsibility of management control, policy guidance and supervision of each group's corresponding functions. 5. MarCom Service Responsible for brand image, as well as planning, implementing and supervising the WPG Holdings e-marketing platform. Also bear the responsibility of management control, policy guidance, and supervision of each group's corresponding functions. 6. Legal Affairs Service Responsible for the WPG Holdings legal affairs. Also bear the responsibility of management control, policy guidance, and supervision of each group's corresponding functions. 7. Credit Mgt. Service Responsible for the WPG credit management services. Also bear the responsibility of management control, policy guidance and supervision of each group's corresponding functions. 8. Risk Mgt. Service Responsible for the building of WPG Holdings’ risk and crisis mechanism, coordinating risk management activities, and promoting risk and crisis management awareness. 9. General Affairs Service Responsible for the WPG Holdings general administrative affairs. Also bear the responsibility of management control, policy guidance and supervision of each group's corresponding functions.
  • 45. 39 10. T.I.P.E. Service Responsible for assisting WPG Holdings and each group to optimize the business management mechanism, intelligent operation performance management, and strengthen the quality of operation process to improve the overall operational management efficiency and efficiency. 11. CMSO Office Responsible for assisting WPG Holdings and each group to unite internally, establish a resource sharing and collaborative cooperation platform to serve customers and strengthen the production line. Ensure that all the transactions, customers, and products are well managed in accordance to the global and local trade compliance regulations; with the innovative services of dada platform automation and subscription, we have improved the user experience and achieved digital results. 12. ESG Office Responsible for matters related to sustainability development planning and implementation for WPG, as well as tracking the results of sustainability activities, and making plans for further improvement to enhance our sustainable competitiveness. Human Resource professionals play a crucial role in managing an organization's most valuable asset: its people. The HR profile can encompass a wide range of responsibilities, depending on the size and structure of the company. • Talent Acquisition and Recruitment: HR professionals are involved in the recruitment process, sourcing and attracting suitable candidates for open positions, conducting interviews, and coordinating hiring activities. • Employee Relations: HR professionals are responsible for managing employee relations, resolving conflicts, and fostering a positive work environment.
  • 46. 40 • Performance Management: They are involved in the performance management process, conducting performance appraisals, and providing feedback to employees to enhance their performance and development. • Compensation and Benefits: HR manages salary structures, benefits packages, and other compensation-related matters. • Training and Development: HR coordinates employee training and development programs to enhance skills and knowledge. • Compliance and Legal: They ensure compliance with employment laws, labour regulations, and company policies. • Employee Engagement: HR professionals work to promote employee engagement and satisfaction, implementing initiatives to boost morale and motivation. • Health and Safety: They play a role in maintaining a safe and healthy work environment, implementing safety measures, and managing employee wellness programs.
  • 47. 41 Chapter 5 SWOT Analysis SWOT analysis is a strategic planning tool that can be used by Wpg Resources Ltd managers to do a situational analysis of the firm. It is a useful technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Wpg Resources Ltd is facing in its current business environment. The Wpg Resources Ltd is one of the leading firms in its industry. Wpg Resources Ltd maintains its prominent position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires effective coordination among various departments within the company such as – marketing, finance, operations, management information systems and strategic planning.
  • 48. 42 Strengths Global Presence: WPG Holdings has an extensive international network with operations and distribution centers across various regions, enabling it to serve a diverse customer base worldwide. Broad Product Portfolio: The Company offers a comprehensive range of electronic components and semiconductor products, giving it a competitive advantage in meeting the needs of different industries. A product portfolio is the collection of all the products or services offered by a company, each with a different growth rate and market share. Product portfolio analysis can provide nuanced views on a stock type, company growth prospects, profit margin drivers, income contributions, market leadership, and operational risk. This is essential for investors conducting equity research or analysts supporting internal corporate financial planning. All the products and services offered by a company constitute its product portfolio. Analyzing a company’s product portfolio allows investors and internal analysts to assess its strengths and growth potential, as well as the risks that investing in it could entail. There are significant differences between the portfolios of mature companies and younger firms. Strong Supplier Relationships: WPG has established strong partnerships with leading suppliers and manufacturers in the electronics industry, ensuring a stable supply of high-quality components. Having great suppliers as part of your business improves both your service to your customers as well as your efficiency. A good relationship with a supplier can also provide you with a much-needed business supporter who can provide a fresh perspective and encourage business to come your way. After all, if your business is growing, so will your suppliers’ business. To maintain a great supplier relationship, you have to approach it in the right way.
  • 49. 43 Efficient Supply Chain: The Company’s efficient supply chain management enables quick delivery and reduces lead times; meeting customer demands effectively. Supply chain efficiency focuses on delivering quality products to customers at the lowest possible cost by maximizing such resources as materials and labor. Supply chain responsiveness focuses on customers’ expectations and strives to provide a quality product faster. Experienced Management Team: WPG Holdings benefits from having an experienced and skilled executive management team, guiding the company's strategic decisions. A management team creates guidelines, goals, checkpoints, and objectives for employees to improve productivity while also providing support and motivation. The goal is to: manage people and manage processes. As a team manager you’ll recognize employee needs, incorporate clear guidelines, and set timelines. Management teams help balance needs while moving toward a common goal. Weaknesses Dependence on the Electronics Industry: WPG's business heavily relies on the demand for electronic components and semiconductor products, making it susceptible to fluctuations in the electronics market. Electronics industry, the business of creating, designing, producing, and selling devices such as radios, televisions, stereos, computers, semiconductors, transistors, and integrated circuits (see electronics). As sales of electronic products in the United States grew from some $200 million in 1927 to over $266 billion in 1990, the electronics industry transformed factories, offices, and homes, emerging as a key economic sector that rivalled the chemical, steel, and auto industries in size.
  • 50. 44 Market Competition: The electronics distribution industry is highly competitive, and WPG faces competition from other major players and regional distributors. Opportunities Technological Advancements: The continuous evolution of technology, including IoT, 5G, AI, and electric vehicles, creates new opportunities for WPG to supply components for emerging applications. Technological advancement is the improvement and innovation of the utility of science. Science is an epistemological methodology in which understanding, descriptions, explanations, and predictions for natural and mathematical phenomenon are sought after through observation, investigation, experimentation, and especially falsification. Essentially, science is the systematic weeding out of bad or false ideas. Technology is any utility and applicability of scientific understanding; i.e., technology is the application of science for practical use and purposes. For example, levers and pulleys are technology because they apply understandings of geometry and physics. A pencil is technology because it applies understanding of the physical properties of graphite. Technological advancement occurs when technologies or applied sciences become more precise, accurate, efficient, or more powerful or capable. Scientific and technological advancements have made many important changes throughout history, some better than others. Growth in IoT and Smart Devices: The increasing adoption of Internet of Things (IoT) devices and smart devices in various industries presents a significant growth opportunity for WPG Holdings. Emerging Markets: Expanding into emerging markets with rising demand for electronics, such as Southeast Asia and India, can provide new growth avenues.
  • 51. 45 An emerging market economy is the economy of a developing nation that is becoming more engaged with global markets as it grows. Countries classified as emerging market economies are those with some, but not all, of the characteristics of a developed market. Threats Supply Chain Disruptions: WPG may face risks related to supply chain disruptions, component shortages, and geopolitical issues that can impact the availability of products. Supply chain disruption is an interruption in the flow of process that involves any of the entities associated with the production, sales, and distribution of specific goods or services. A systematized supply chain is crucial in maintaining the quality of products from start to end, and ensure that all resources utilized are of the best quality. Economic Volatility: Economic downturns or global economic uncertainties can lead to reduced demand for electronic components, affecting WPG's business. It is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. It shows the range to which the price of a security may increase or decrease. Volatility measures the risk of a security. It is used in option pricing formula to gauge the fluctuations in the returns of the underlying assets. Volatility indicates the pricing behaviours of the security and helps estimate the fluctuations that may happen in a short period of time. If the prices of a security fluctuate rapidly in a short time span, it is termed to have high volatility. If the prices of a security fluctuate slowly in a longer time span, it is termed to have low volatility.
  • 52. 46 Technological Obsolescence: Rapid advancements in technology can lead to the obsolescence of certain components, requiring continuous adaptation and investment in new product lines. Currency Fluctuations: As a global company, currency fluctuations can impact WPG's financial performance, especially when conducting business across different countries.
  • 53. 47 CHAPTER 6 Learning Outcome Working as an intern at WPG India Pvt Ltd. with the commerce department, I learnt a lot about how the company handles its income and expenses and how they reimburse their employees. I understood how the company has a complete record of its employees. They also have a record of details such as travelling details invoice, tax invoice etc. I also understood how the company reimburse the amount to its employees, in the process of reimbursement there should be more than two approvals. I learned that everything is followed according to the process or step by step. I also learnt about trade compliance statement, which is a document to ensure that the trade is happening between the two companies. Through the internship I learnt about confidential credit application, which means requesting to extend the maturity time period to pay the current amount. Another important concept that i learnt from my internship was Letter of Authorization, which means the third-party acts on behalf of the company. I also learnt about Tax Invoice, which means it is an invoice that is issued in supply of goods or services. As I worked at WPG India Pvt Ltd., which is a semiconductor distributor, I was practically able to see the materials or products that were supplied or distributed. Each product or material had a different & unique part number with which we could identify it. This also helped us check the quantity of each material present in the box. Working with the commerce department at WPG India Pvt Ltd., I had the opportunity to understand and explore the Oracle software. This is the software used by WPG for all its payments and receipts. All the payments receipts of the company should be accounted using the Oracle software, so that the company can have all of it recorded. Through my internship I learnt a few concepts such as AP, which means accounts payable. Here all the payments are posted in an AP module.
  • 54. 48 Another concept that I learnt was AR, which means accounts receivables. Here all the receivable or receipts are posted in an AR module. NM module is another new concept that I learnt through my internship where all the petty cash and all the banking details are posted. I also had a clear and practical understanding of how the balance sheet of my company is prepared. I also understood how the profit & loss account of the company is prepared. Overall I had a wonderful working experience at WPG India Pvt Ltd. I am sure this experience will help me in my future career as well.
  • 55. 49 Chapter 7 Conclusion The accounts industry encompasses a wide range of financial activities, including accounting, auditing, tax preparation, financial analysis, and advisory services. These services are critical for businesses to maintain accurate financial records, comply with regulatory requirements, make informed decisions, and attract investments. Additionally, the accounts industry plays a pivotal role in aiding economic growth, as it facilitates the allocation of resources and capital by providing reliable financial information to investors and stakeholders. In a nutshell, this internship has been an excellent and rewarding experience. I can conclude that there have been a lot I’ve learnt from my work at WPG which Includes Data Entry and Accuracy, Accounting Software, Time Management, Communication Skills. Needless to say, the technical aspects of the work I’ve done are not flawless and could be improved provided enough time. Two main things that I’ve learnt is the importance of time- management skills and self-motivation. Internships helped me to develop a perfect and successful career in a prestigious company that’s connected to my study interests.