Dynamic Supplies makes peace with HP

Consumables distributor Dynamic Supplies has settled its year-old feud with HP in a NSW Supreme Court agreement binding both parties to silence.

The two companies had been embroiled in what at times had been a highly public battle stemming from the ending of Dynamic Supplies' authorised distributor relationship with HP last September.

The companies had terminated their purchasing arrangement following three months of unsuccessful negotiations. HP then sued Dynamic Supplies in the NSW Supreme Court for an initial figure of around $7 million, allegedly for monies owing.

Kerry McKevitt, financial controller at Brisbane-based Dynamic Supplies, said the parties had settled their differences in a Supreme Court of NSW hearing on Monday, 30 August.

"It all began in early September last year. This formally concludes that particular stuff," he said.

Dynamic Supplies had agreed not to disclose the terms of that deal as part of the settlement. No further legal actions were in progress, McKevitt added.

He said he could not confirm whether HP had paid Dynamic Supplies off or whether the deal meant Dynamic Supplies would no longer publicly criticise HP. "But we are delighted," he said.

Dynamic Supplies was no longer an official distributor for HP Australia but the company would continue to shift HP product. "We will still be a major distributor for HP, without a shadow of a doubt," McKevitt said.

He refused to say precisely how or where Dynamic Supplies was sourcing its HP product, arguing that such disclosures may reveal the company's edge to its competition.

Asked whether people might think Dynamic Supplies was acquiring its HP product via shady methods, McKevitt said: "They can suspect that. But we have made [the facts] very clear to all those that know us."

The distributor also worked with Lexmark, Kyocera, Imation and Sharp, he said.

Dynamic Supplies went public several times in the last year, criticising HP for its practices in the channel. As a result, both HP and other industry players have hit back at the distributor's outspokenness.

"The point is it was necessary in the case of those particular actions to make people aware of current concerns," McKevitt said. "They were well aired. And people are now aware of those things."

Dynamic Supplies had done around $70 million of business with HP Australia each year as an authorised distributor. That accounted for about 40 percent of the distributor's total revenue.

However, McKevitt said revenues had not dropped as a result of the feud and Dynamic Supplies was looking forward to a "new era".

"We have received unprecedented support over this period, so we have gone forward in volume capacity and everything else," he said.

He would not reveal details of revenue or growth. "But there are lots of other exciting things happening in growth and facilities," McKevitt said.

Dynamic Supplies was increasing its warehouse capacity in two sites to answer that growth. The company would now compete head to head with HP Australia, McKevitt added.

HP was contacted for comment but had not replied at press time.