Supply Chain Connect | 2024 Distribution Outlook
Distributors get back to business. After (mostly) untangling the supply chain, industry leaders look to artificial intelligence and strategy to lead the way forward. The following are excerpts taken from interviews with the experts at NewPower Worldwide for Supply Chain Connect’s 2024 Distribution Outlook.
What is the most significant business opportunity for you in 2024?
Carleton Dufoe, Chief Executive Officer, NewPower Worldwide
NewPower is committed to delivering outstanding service and support to customers across all industries. With increasing demand and extended lead times, we recognize the immense potential in our current markets. Furthermore, emerging markets offer additional growth opportunities. In 2024, NewPower is well-equipped to guide and empower our customers to succeed in this market landscape. We maintain a strong and transparent financial foundation, a robust balance sheet, and audited financials. This financial wherewithal ensures we can support our customers and honor our commitments.
What are your expectations for Asian market revenue growth in CY2024?
Mark Goh, VP Trade, APAC, NewPower Worldwide
In 2023, the market experienced a healthy correction after a global component shortage lasting over 2 years. As our customers work to balance their oversupply situations, we have observed significant demand cuts and price drops throughout the year. Looking ahead to 2024, we are confident that the worst is behind us, based on discussions with our major customers and suppliers. The Asian market is expected to lead the revenue rebound, with a noticeable increase in customer activities and transactions in Q4 2023. We have made substantial investments this year, including opening new offices, expanding existing ones, enhancing our logistic infrastructure, and hiring talented individuals across departments. Notably, we have increased our Sales and Purchasing headcount in APAC by 50% and tripled our warehouse space in Singapore and HK compared to 2022. These investments are already yielding positive results, allowing us to reach more customers and suppliers in APAC and instilling confidence in our ability to deliver on time, every time.
What are your expectations for North American revenue growth in CY2024?
Patrick Deware, VP Strategic Accounts, NewPower Worldwide
NewPower is thriving amidst the recent historic component shortage, challenging traditional supply chains and creating disruption in the market. Our unique approach and focus on customer-oriented solutions set us apart. We have been successfully gaining market share from conventional distribution entities and offering significant value to our customers through our inventory management
solutions. In contrast to franchise distributors, who impose high upfront fees and lack flexibility, we have become a trusted supply partner managing over $1B in inventory. Our proprietary technology platform, EMPOWER™, ensures direct fulfillment with real-time updates and round-the-clock global support. We will continue investing in programs that make us a top-tier supply chain partner, maintaining our competitive edge and fueling our growth as the leading independent supplier worldwide for the past eight years.
What are your expectations for European market revenue growth in CY2024?
Martijn Fonkert, General Manager, EMEA, NewPower Worldwide
Coming out of one of the industry’s longest and most challenging shortages, the supply chain landscape remains dynamic. NewPower is well-positioned to continue supporting our customers in this ever-evolving market. In 2023, we successfully navigated the transition from a global shortage to an oversupply, and in 2024, we are prepared to address new challenges that arise. Our focus will be on assisting our customers in mitigating inventory risks, implementing strategic buffering strategies, and resolving spot issues that are expected to persist. Despite the changing market conditions, we anticipate continued growth in 2024, driven by our strong partnerships with key customers and suppliers. This year presents an opportunity for us to further optimize our customers’ supply chains by expanding our portfolio of services, offering a diversified range of solutions that address their unique needs.
How bullish/bearish are you for business in 2024, and why?
Jon Henry, VP Strategic Accounts, NewPower Worldwide
We believe the market will be predominantly bullish, and NewPower is well-positioned to thrive in this environment. We are already observing upward trends in core commodity areas and the growth of sectors like EV demand, data center demand, and AI. These industries are interconnected and call for increased electronic component supply. What sets NewPower apart is our agility and ability to pivot quickly to meet changing supply and customer demands. With our advanced technology and global presence, we are well-equipped to adapt and provide services where they are most needed. This positions us for success not just in 2024, but in the future as well.
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