Did your latest shipment of print/copy/fax/scan devices come from an OEM or a distributor? Why use one rather than the other? Do you use both? Or does it depend on the product, timing, or other factors?
Some dealers are choosing a distributor such as Distribution Management or TD SYNNEX. This makes sense because the same devices arrive from either a distributor or a vendor. OEMs typically offer a range of products, including those beyond the needs of office technology dealers. Meanwhile, some distributors focus primarily on providing the copiers, scanners, and printers that dealers and their customers need. A few are divisions of mega-dealers. Others specialize in areas where office technology dealers don’t play at all.
Five Major Distribution Players
Distribution Management
Impression Solutions
Katun Corporation
MARS International
TD SYNNEX
Supply chain evolution
Even a casual glance at office technology shows the three basic tiers of the office technology supply chain. Topping this list are OEMs, which develop and produce the various devices and sell them to dealers and distributors. Next are distributors, which some (inaccurately) think of as middlemen, acquiring products from OEMs and selling them to dealers. Many have warehouses in multiple states, helping ensure prompt deliveries. Most provide equipment from more than one OEM, which can be advantageous to vendors in certain markets and for some dealers. Some distributors take vendors out of the loop for all but product development and manufacturing, while others have mutually beneficial agreements with OEMs. Finally, there are dealers like you, who sell the devices to end customers. This makes for a very dynamic mix. Service is a separate function that is addressed in different ways.
“The OEM-direct model has historically been the standard,” noted Ted Gruener, senior vice president of sales at Distribution Management. But some multi-line dealers prefer working through distribution because it can enable consolidation of multiple OEMs into a single order and shipment. This streamlines procurement while reducing freight costs and administrative complexity, an increasingly critical advantage as shipping expenses continue to rise. Remember when your Amazon order arrived overnight for free? Not always the case these days. We’ve all seen online pitches for saving on shipping, even on household items.
To learn what this means in business terms, Distribution Management developed a cost calculator revealing a consistent 5% to 10% reduction in total supply chain costs when combining orders for A3 and A4 products. “This equates to approximately $50,000 to $100,000 in annual savings for every $1 million spent,” noted Gruener. “For some dealers, this can help forge a better deal for a customer or mean reducing or eliminating real estate costs, potentially driving those savings higher.”
Multi-line office technology dealers commonly offer devices from different OEMs that do essentially the same thing. While such devices’ main job is putting text and images on a page, a dealer’s customer may prefer one brand over another, perhaps driven by familiarity, facilitating network printing, and ease of use. Getting these boxes to the customer can be easier with a distributor. Devices from two vendors destined for two different customers can arrive at a customer’s office individually or at a multi-line dealer in a single shipment. One invoice is issued for both devices.
Meanwhile, OEMs play the key role of designing and building all manner of devices. The rise of distributors has made vendors more aware of what they offer beyond the deal of the moment. “More and more print channel OEMs are realizing the value of the scale they provide,” said Mike Marusic, president and CEO at Sharp. For example, OEMs can make substantial investments in new technologies, such as AI, that can be leveraged within products and with customers. In some cases, OEMs may be able to leverage the market reach of distributors to help improve warehousing and distribution while reducing costs associated with those activities. This may also let a vendor provide better support for dealers. Distributors cannot usually do this on their own.
Then, there’s strategy
Doing what a company does well adds advantages for both OEMs and distributors. Sharp, for instance, uses different distributors for its print and video display technologies. Each adds capabilities beyond the company. On the print side, it works with Distribution Management and TD SYNNEX. “Both provide excellent support in areas we don’t do as well as they can. This frees up efforts to focus on what we excel at,” explained Marusic. Expensive and specialized areas like warehousing and logistics are just two areas where distributors excel. But they are difficult for an OEM to take on while working with a cost structure linked to sales.
Providing office technology dealers with a higher level of support on sales and product innovation is more valuable to many OEMs than delivery. This OEM-versus-distributor choice can allow a vendor to work more closely with dealers. While some office-tech dealers say they chose distributors because they think field support is being reduced by OEMs, other vendors are providing more support because they don’t have to expend capital on warehousing and personnel.
Distributors and vendors are also changing how the game is played. For instance, in the thin-margined A4 space dealers recognize that lower price points, minimal end-user setup, and tighter margins require a more streamlined supply chain. In this example, the drop-ship approach used for A3 hardware is not right for A4. But A4 equipment, combined with distributor-driven services such as pre-configuration and managed installation, is especially well-suited for a distributor-supported supply chain, unless your customer has a tech-savvy employee or one of your team can support the arrival and installation of the new device.
Distributors can also have a scalable advantage. Those with multiple locations and offering products from several OEMs often have arrangements with multiple shippers. For some vendors, sharing such a warehouse and distribution system may allow them to take a fixed cost, such as warehousing, and make it a variable cost.
Changing relationships
Relationships between OEMs and distributors also vary. Most vendors know they are not logistics companies, a key part of distribution. Letting an expert handle those tasks while focusing on what can make a product more appealing is more important. With distributors on the rise, office-technology vendors have become more aware of what other businesses have known for a long time: focus on what differentiates them and where they can add value. Warehousing and logistics are better handled by companies that do what a vendor can’t do efficiently.
Blurring some of this are other factors. Some large office technology dealers have divisions that provide regional distribution services. OEMs, such as Sharp and Toshiba have affiliated with “elite” dealers.
Other dealers have shifted to being “Total Business Solution Providers,” perhaps working with several OEMs, partners, and multiple distributors, offering cybersecurity and workflow automation solutions alongside hardware. All are different paths for different companies.
Using a distribution partner can add value
From a customer experience standpoint, distribution allows dealers to provide a consistent delivery experience, making it easier to serve as a one-stop partner for customers. This helps some dealers more effectively sell across brands and categories while maintaining consistent service levels and delivery expectations. When looking at distributors, be sure to consider the technologies they provide. “Many distributors offer integrated e-commerce platforms, API connectivity, and turnkey business tools allowing dealers to scale quickly without the need for internal investments in systems or infrastructure,” said Distribution Management’s Gruener.
Talk with your customers, your vendors, and the distributor(s) you work with. Decide which adds the most value for your dealership and your customers.
The value of a fresh perspective
There are those who claim Millennials, people roughly from ages 30 to 45, are unmotivated, unwilling to work hard, and unable to lead or manage in a successful, fast-paced business. Never mind that this description describes members of every generation.
They need to meet Suzanne Kaucic, director of product management at Distribution Management, who lives large as an exception to this line of thinking. After receiving her MBA and holding leadership roles at other firms, Suzanne now serves in a very visible leadership role at Distribution Management. Most important is that she “gets” this industry. Suzanne understands how dealers think and how they do things—including buying practices—that are right for their businesses and the markets they serve.
“I do my best to understand how people collaborate, communicate, and use technology,” she explained. “This allows me to be open to approaches while improving efficiency and engagement across teams and companies.”
Kaucic found that having grown up with technology presents an advantage. “I’ve been able to bring a fresh perspective by questioning legacy processes while looking for more efficient, data-driven, technology-forward ways of solving challenges.” This combination of respect for institutional knowledge, comfort with change, and utilizing modern tools has been an asset at Distribution Management.
Some of this, she noted, was challenging an entrenched ‘this is how we’ve always done it’ mentality. In contrast, Kaucic looks at data, business impact, and scalability before committing to a path forward. “I try to balance openness to new approaches with respect for experience and trust in a well-established process. Balancing curiosity, energy, and respect for proven practices helps me add value while supporting innovation and growth.”
What matters
The shortage of people 40 and younger may deny our industry the vision many younger people bring to work each day, not only in how they interact with colleagues but how they see the future. This is important because office technology is changing. While copying and printing are likely to remain mainstays, the industry workforce is getting older, and younger talent is needed to keep all the plates in the air, especially as those plates keep changing.
“I have appreciated the mentorship and leadership at Distribution Management,” says Kaucic. “Learning from experienced colleagues is important so new ideas can be applied in practical ways. Being well-prepared, following through consistently, and letting results speak for themselves all matter. Over time, strong performance, reliability, and thoughtful decision-making tend to outweigh age.”
