Like most segments in the IT sector, distributors have had their share of growing pains. And while the outlook for consumer spending remains uncertain to stay in the race, distributors are competing with each other to differentiate themselves based on customer service, introducing new products more quickly to the market and streamlining operations.
p____p As all of this change swirls around the channel, often the most critical challenge for businesses, including those up and down the IT supply chain, is deciding how to adapt and respond in such a way that it moves them forward rather than driving them off course, or even completely aground. Distribution, despite all its problems (consolidation, tight margins, reseller issues etc.), is still an exciting profession. And while at it, the channel can afford to do well if it stops resorting to lobbying grenades at one another, hoping to garner revenues and profits at someone else’s expense.
p____p A mature reaction would be to come together for mutually beneficial opportunities. This spirit of “healthy competition” arising from joint and creative thinking among all channel players has the potential to create shared benefits, resulting in a healthier IT industry, stabilized lucre etc. for all.
p____p No longer can anyone, including distributors, expect product margins alone to sustain value proposition. The channel is focusing on squeezing supply-chain costs while offering a broader scope of enhanced services to customers. Distributors choosing healthy channel partners with a winning mentality should also help the business in the long term.
p____p As channels’ alternatives narrow, it’s becoming increasingly necessary to fully understand the avenues used to reach customers. With so much emphasis on product development, channel distribution cannot afford to get overlooked among marketers.
p____p Everything in the IT industry is changing at a fast pace, but when one cuts to the chase, distribution boils down to having the right personal relationships, the right product and the right service level and the right price. And getting it to the right place at the right time.