SPECIAL FEATURE
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DISTRIBUTION IN FOCUS
A master of convergence
Alex Lister
I
ndustry mover Micro-P turned over £474 million last year in a recession busting performance that also saw a 24 per cent hike in sales. The core values of the business are key to growth, along with doing all the basics right. Technology is also playing a major role in shaping Micro-P. Its supplier partners are on top of their game and assist the distributor in ensuring that new product are brought to market. “With these new and exciting areas comes lucrative margin opportunities,” said Lister. “It is the role of the distributor to plan how and where to sell these products and how they fit into the existing portfolio of products without confusing the customer.”
The converged network is pulling everything together, and in the voice, data and mobile sectors all of these product sets will eventually merge. “It is the distributor’s choice today as to how they prepare for this. Those with expertise in all of the product areas will find the move easier,” said Lister. “At Micro-P we have a core distribution business based around data products, now accompanied by a mobile and voice division. You cannot possibly embrace convergence as a ‘one trick pony’. The manufacturers realise this and are looking to partner more and more with distributors that understand the convergence
Distributors are under increasing pressure to find new ways to improve profitability, and as convergence pulls everything together becoming the ‘master of all trades’ is key to success, according to Alex Lister, General Manager of Communications at Micro-P.
Alex Lister
message. They know that distributors will align their products with other complementary converging products. The new technologies are being pushed by suppliers and we are here to embrace and invest where necessary in these products as part of our growing portfolio.”
Most of Micro-P’s key suppliers are embracing convergence and have the product sets to go. Both distributor and manufacturer can ride the convergence wave and jointly get the message across to voice and data resellers that they cannot be left behind. The partnership with the manufacturer is key, but just as pivotal are customer relationships.
“Although a large company we are able to be flexible where the customer is concerned,” stated Lister. “Our sales people are skilled in their product sector. This is particularly important in voice where we distribute Samsung and NEC products, and we have paid close attention to ensuring we give first class technical support for our resellers. More recently we have invested in the education sector and have a brand new focused team in this area to spearhead what we see as a sector for growth. We have seen success in this area already and have the full portfolio of products to drive this forward.”
Micro-P has sound business propositions in the voice, data and mobile sectors, and has positioned itself at the forefront of convergence distribution, always keeping an eye on the next opportunity. Lister commented: “We are mindful of other emerging technologies, and although as a business we focus on selling tin, cloud-based technology for example is very real and we are already in discussion with suppliers in hosted voice and hosted server solutions. Here our challenge is not understanding or embracing this technology, but educating our sales people as to when and how to sell these new propositions against their existing portfolio.”
Lister observes that it is not easy for a distributor to cover all of the bases, but notes that Micro-P has the skill sets and vendor relationships to succeed. “Manufacturers do not want lots of distribution partners, they want a partner with a sound pedigree who they can trust,” he added.
“By default, as a distributor the only other way to go would be to become a niche player and focus on what they can do well, rather than what they would like to do well. This could work, but it leaves the customer left wanting when you have to explain that they need to go elsewhere for a product you cannot supply.”
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Looking ahead, Lister predicts a landscape with fewer distributors as manufacturers select the partners who are equipped to deal with all products and technologies, a trend driven by convergence. “The larger ones must be able to cover the length and breadth of communications and be investing in the future. The smaller distributors will either be bought or sold or concentrate on specific niche product areas,” said Lister.
He believes that channel innovation and improvement are driven by both the manufacture and distributor. If both are aligned with a good solid partnership then it is the recipe for success. “Many manufacturers are on top of their game as far as new product development is concerned,” Lister said. “How to get this out to the customer in an effective and non confusing way is always the challenge. This is where the distributor comes in, making sure the message to market is clear, particularly in line with other products. Because we are all based in the communications world we naturally assume that everyone understands the technology. If the customer does not understand the technology or the product sets they will naturally procrastinate, slowing down the rate of new technology adoption. We need to keep it simple.”
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Distribution Focus cont’ on page 50
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