Philips Changes Its Semiconductor Sales Coverage

November 10, 2003 by Jeff Shepard

Royal Philips Electronics (the Netherlands) announced that it will change its North America regional semiconductor sales coverage model to a fully direct sales approach in the US and Canada effective January 2004. Philips has utilized a manufacturers representative network for more than 15 years in North America. The change will increase the emphasis on North America by more than doubling the current direct sales team to improve service to its customers. The direct sales team currently serving customers will remain in place without any significant changes.

In North America, the semiconductor division at Philips currently deploys a "hybrid" sales force of direct Philips sales personnel and a network of 10 manufacturers representatives. Philips has a transition plan in place to support its customers, and the transition will be complete by December 31, 2003. The expansion of the direct sales team will be complete during the first quarter of 2004. The new sales professionals will be located close to customers throughout the US and Canada.

"This change to the North America sales structure will result in a consistent global semiconductor sales and service approach. In addition, the increase in direct sales presence will help our customers better understand the benefits of Philips products, technologies and service capabilities," said Bill Galione vice president and general manager, Marketing and Sales Americas, Philips Semiconductors. "As most of our customers have worldwide operations, we can better serve our North American customers as we balance their design needs in North America with their fulfillment and manufacturing needs in Asia Pacific and other parts of the world."