Overview of Design Registration and Win

Selling components to OEMs requires a substantial amount of design work by the OEM, and the sales cycle for the distributor is long and requires significant investments of resources.

To protect themselves from competition during this long design period, distributors use Siebel High Tech and Industrial Manufacturing to register designs. If the registration is approved, the distributor typically receives financial incentives from the manufacturer, such as special off-book pricing. Distributors without registration do not get those incentives, so it is unlikely that they would invest their resources in this project.

If the distributor or salesperson successfully convinces the OEM to use this component in this product, then the distributor or salesperson uses Siebel High Tech and Industrial Manufacturing to change the status to design win.

The goal is to give the distributor an incentive to spend time with the OEM, designing the supplier's component into the OEM’s product. After the distributor owning the registration gets the design win, the manufacturer will typically grant them additional margins through a special pricing authorization (SPA). Competing distributors will not have the same cost base as the distributor owning the registration, so they cannot offer the same price to the OEM.

For more information about design registration and win, see Design Registration, Opportunity Management, and Design Win