DigiKey Drives Innovation and the Future of Automation

DigiKey is recognized as the global leader and continuous innovator in the cutting-edge commerce distribution of electronic components and automation products worldwide. During an interaction with Vidushi, Dave Doherty, President, DigiKey discussed the innovative strategies, robust partnerships, and commitment to quality and sustainability are driving their leadership in the electronics distribution market, supporting engineers and industries globally with cutting-edge tools, seamless digital interfaces, and expanded product offerings.

1. How has DigiKey maintained its leadership in the market, and what innovative strategies have you recently implemented to stay ahead of competitors?

DigiKey offers the world’s largest selection of electronic components in stock and available for immediate shipment. Beyond the products that drive technology innovation, DigiKey also supports engineers with a wealth of digital solutions and tools to make their jobs more efficient.

DigiKey provides customers with a frictionless digital interface, saving them time so they can focus on designing and building. We offer the newest technologies and components used to build the machines and devices that propel industries like healthcare, automotive, AI, energy, 5G and IoT into the future.

We continue to invest in more robust and predictive web search functionality, higher inventory levels and increased automation in the DigiKey warehouse, which all benefit customers by providing an easy and efficient research, shopping and delivery experience.

DigiKey is investing in innovations, including automating the cutting of tape and reel products. We are also automating the production of DigiReels to improve the consistency and quality involved in splicing leaders and trailers to cut tape.

2. With over 15.3 million products from more than 2,900 manufacturers, how does DigiKey ensure the quality and reliability of the products in its catalog?

We’re pleased to share that we now actually offer 15.6 million components from more than 3,000 quality name-brand manufacturers! We hold ourselves to rigorous standards of excellence so our customers can be confident their orders consistently contain genuine, high-quality products they can trust. DigiKey works hard to obtain, maintain and uphold the highest standards of quality and reliability.

Quality is a crucial parameter that differentiates DigiKey from our competitors. In addition to working with our external suppliers and customers, our internal teams have adopted a culture of continuous improvement to ensure all our products and processes adhere to all government and industry standards and regulations.

3. Can you discuss the importance of your supplier partnerships in delivering a broad portfolio of automation and control products?

Automation and control is DigiKey’s fastest-growing industry segment. This year, we will serve more than 400,000 automation customers globally. To satisfy and grow that fantastic customer base, it is key to continuously expand our portfolio of automation and control products and new suppliers.

Our strong supplier partnerships are critical to our commitment to growth—both in expanding our supplier base and in increasing the number of SKUs we offer our customers. For the last couple of years, engineers have been focused on finding parts to keep their existing production lines running, substituting and alternating parts. We’re excited that everyone is back to true innovation, and we know we’re the distributor to help engineers and designers accelerate progress.

Our continued investment and focus on inventory and NPI, exploration and entry of new markets and geographies, supplier services (such as hosted cart) and growth of our eCommerce capabilities also help us deliver a broad portfolio of automation and control products in India and around the globe.

4. DigiKey offers a range of digital tools, technical resources, and community forums. How do these resources enhance the customer experience, and what feedback have you received from users regarding these tools?

Beyond the products that drive technology innovation, DigiKey also supports engineers with a wealth of digital solutions and tools to make their jobs more efficient. We often hear from customers and others in the industry that people say, “If it’s not on DigiKey, it’s not a good product!” We appreciate the frequent acknowledgment as the industry gold standard, and we work hard to maintain that standard for all.

Customer engagement is the best feedback we can receive for our resources and TechForum, and the numbers speak for themselves. Last year, the DigiKey TechForum had more than one million unique visitors. There are currently more than 24,000 active topics being discussed, with more than 80,000 posts from our community members!

5. The expansion of your Product Distribution Center to 2.2 million square feet is impressive. How has this expansion improved your operational efficiency and customer satisfaction?

With more than 3 million total square feet of product distribution space at our headquarters in Thief River Falls, Minnesota, we have plenty of room to scale up as order volumes increase and to expand the number of new products we can offer for our customers’ design and manufacturing needs.

Our distribution center expansion was designed to support broken pack quantities to support engineering and low/mid-level production requirements. We also designed our own systems that further automate the picking process and improve traceability and more accurate pick quantities. The largest component of our newly automated system is an Order Storage and Retrieval (OSR), which provides the right parts to the picker every time, eliminating walk time and providing an ergonomic environment for the picker. This high level of automation improves picking efficiency by up to 35% and provides a great improvement in packaging quality and efficiency.

6. What emerging trends in the automation and electronics industry are you currently focusing on?

Wireless connectivity, industrial automation and electrification, smart sensors, cross-architecture solutions and rapid prototyping are all key trends this year. There is a lot of hype around AI, ML and advanced data right now. Many companies are starting to scratch the surface and try things that have the potential to significantly change the way we do business long term. We’re excited to help engineers, designers, and makers accelerate progress in these spaces.

In the past year alone, there has been a surge in new product introductions in every industry, from automotive to medical, industrial automation to consumer devices and everything in between, driving business across the board. Healthcare, automotive, energy, 5G, and IoT will continue to drive innovation for many years to come, and DigiKey will continue to provide all the components and services necessary to accelerate that progress.

We view the electrification of everything as a key industry trend that has driven significant growth and will continue to drive significant growth this year and beyond.

7. As a global distributor, how does DigiKey approach sustainability and corporate responsibility?

DigiKey understands that the business choices we make today directly impact our company’s future success and viability, as well as our global community’s future. We are committed to making a positive impact on the world by prioritizing innovation, quality, and environmental stewardship. Through innovative practices, standardized certifications, and collaborative partnerships, we are dedicated to minimizing our carbon footprint, conserving resources, and enhancing the well-being of the communities we operate in. From our supply chain to our operations, sustainability is driving us to create a brighter future for many generations to come.

One way we demonstrate our commitment to protecting the environment and mitigating environmental impacts is through our ISO 14001 certification. DigiKey maintains compliance with various environmental requirements, including but not limited to air, soil and stormwater protection.

8. Can you share any notable customer success stories where DigiKey’s products and services have significantly impacted a project or business?

DigiKey’s support of India-based Tessolve, an end-to-end silicon and systems partner, has been instrumental in the components supply and technical support areas, enabling Tessolve to produce boards for various designs from customers worldwide. DigiKey’s low-volume assistance and accelerated shipping service play a major factor in designs that have a narrow window for market release.

DigiKey’s seamless user interface helps Tessolve navigate and easily use online services like quoting, unit price comparison, stock availability, manufacturer lead time, part status and more. Our frictionless digital experience also helps Tessolve’s engineering team design using cost-efficient parts with convenient lead times.

DigiKey’s competitive pricing and part traceability support have changed Tessolve’s game in its automotive and aerospace project procurements. Additionally, DigiKey’s multi-region support is a cornerstone for Tessolve’s global manufacturing requirements.