Paige Hookway speaks with Hermann Reiter, Senior Director, Supplier Business Development, DigiKey for an in-depth discussion on DigiKey’s evolving role in industrial automation.
Reiter provides a comprehensive overview of DigiKey, tracing its roots from a small-scale operation to its present stature as a multi-billion-dollar enterprise. Now boasting 16.5 million stocking units and a customer base in over 180 countries, DigiKey is recognised for its digital catalogue, immediate shipping capabilities, and trusted direct-purchase model. Its massive distribution centre in Thief River Falls, Minnesota, and digital presence through 45 country-specific websites underpin its global operations.
The main focus of the episode is DigiKey’s push into the industrial automation sector. Reiter reflects on how the pandemic accelerated ongoing automation initiatives, compelling DigiKey to expand partnerships, introduce new products, and innovate technologically. The company strives to enable its customers to operate smarter, safer, and faster worldwide. A pivotal moment came when DigiKey’s own customer insights revealed strong market demand for automation support, galvanising investment in warehouse capacity, supplier relationships, and the addition of automation product lines.
Reiter elaborates on building strong partnerships with leading suppliers such as Schneider Electric, Siemens, and Festo. DigiKey leverages its digital prowess to facilitate e-commerce for both customers and suppliers, offering features like hosted carts and ensuring a seamless, transparent online experience. The company’s fully digital approach means no field salespeople – all transactions occur online, supported by its robust platform.
A significant topic is the convergence of electronics and industrial automation, which Reiter identifies as a major driver in today’s manufacturing landscape. Technologies such as wireless connectivity, robust networking, Cloud integration, and artificial intelligence are transforming how factories operate. Reiter highlights DigiKey’s own investment in AI, with over 70 projects organisation-wide, emphasising the importance of keeping data fresh and useful.
Customer expectations are evolving, with demands centring on findability, availability, and a frictionless digital experience, mirroring consumer e-commerce habits. DigiKey’s unique distribution model meets these expectations with rapid delivery, multilingual and multicurrency capabilities, and no minimum or maximum order sizes.
Looking to the future, Reiter is excited by advancements in Industry 5.0, where factories become intelligent and agile ecosystems through human-machine collaboration and optimised resource use. DigiKey aims to remain an indispensable automation partner by maintaining an extensive product portfolio and prioritising customer ease.
He wraps up with advice for engineers and procurement professionals: stay current with new products for supply chain resilience and leverage global resources like DigiKey’s free trade zone for efficient international operations.
To hear more from Hermann Reiter, you can listen to Electronic Specifier’s interview on Spotify or Apple podcasts.
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