Auditions are now open for “Distributor Idol”

Once you have finished reading this column, you will be able to turn over the page for our four-page cover feature on the realigning Australian distribution landscape.

Of all the features we have addressed this year, one of the most interesting and relevant to write and research has been around the subject of distribution. I don’t expect the phrase Distribution 2.0 to completely catch on, but it does raise a point on how the distribution landscape is continuing to evolve in the most rapid way possible.

When I sat down to do our annual look at the distribution space, I thought it could be a good idea to assess the two distribution models of niche and broadline. The article planned to look at the advantages and disadvantages of each approach.

I expected the niche guys to laud their “specialist focus and unmatched services” that their ogrish broadline counterparts could never dream of matching. I expected the broadline players (of which Australia has fewer than Europe and the US) to boast of their “one-stop shop and unrivalled logistics”, something those pesky niche players could never hope to match.

What I found was that most distributors are now moving towards, or are currently, a combination of both niche and broadline. The distributors wanted to dodge the label of either just niche or just broadline. Instead they explained what they and the market are moving towards. This mainly consists of a broadening line of products, with more niche specialisation than ever before.

Australia’s most obvious broadline player is Ingram Micro, but the work it has done with its Solutions Group is a clear attempt to provide the specialist support that many resellers expect
from the smaller niche players.

Two good examples of niche players expanding their portfolio into more complementary technologies are WhiteGold Solutions and Distribution Central. Both have a strong offering in storage, security and networking, with numerous more areas already explored and more to be added. They also both have experienced and enthusiastic management teams driving them forward. So no-one thinks I am picking favourites, they are just two examples of many Australian distributors who are successfully diversifying their businesses.

However, the move toward Distribution 2.0 where players are a middle ground between niche and broadline might cause a few victims along the way. The shift will be a bit like moving house – not everything will make the trip – meaning many distributors will be bought, merged and liquidated in this transition. The smart players will realise early if they need to develop internally or look toward one of the three aforementioned changes/fates. Technology is changing and converging so rapidly, distributors need to ensure they are doing the same.

That all said, this is CRN, so what are the consequences for resellers? Well at the moment they all seem pretty positive. Distributors know and understand the value of their reseller partners and will be dead set on proving they are the distribution partner who is able to provide the right blend of complementary technologies and services. It will be a bit like auditions for some kind of strange Distributor Idol. I wonder if Channel 10 will be interested? Judging by its current program line-up, I think it’s got a chance.

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