Over the past few years there has been a noticeable digression from the logical sequence of supply and demand within the channel. This means the established service and supply chain linking the vendor to the distributor to the reseller to the end-user has changed.
 
For instance there is an increase in distributors selling directly to end-users. Many have put this down to a lack of margin in the channel, in other words the profit that one would make in a deal is significantly less than would have been the case a few years ago.
 
Whilst partially true, the situation also has something to do with loyalty and the lack of skills within the channel.
 
It is not uncommon for distributors, those that have the expertise and knowledge for high-end, technical installations, to quote and install directly. They are empowered with the required skill factor, experience and resources to effectively cut out the reseller.
 
Other distributors who try to emulate this practice need to exercise caution because they have not made an initial investment in the necessary expertise. The situation is exacerbated by the regular practice of two distributors being pitched against each other on the same product, but based on price alone.
 
It is important for clients to strictly evaluate the value component that each distributor adds to the product.
 
Any decision must also take into account the fact that there is a premium to be paid for good service, including reliable technical advice, back-up, support and warranty assistance.
 
If one is prepared to overlook all these factors, then it is fine to go for the cheapest price, but do not expect the best service. Ultimately you pay for support and this is not only technical expertise it is warranty back-up; stock availability, advice, consistency in supply and understanding the channel.
 
There are distributors out there that align themselves with very powerful and effective resellers. Qualified resellers will approach distributors for inclusion in business deals.
 
Distributors with two different prices, one for direct supply and that via the channel, and those that adopt a very selective approach to partnership with resellers, together represent the scenarios of the future within the business of distribution.
 
The bottom line is whether there is a value-add component the operator of business, be they a technology reseller, distributor or vendor.
 
For example, traditionally, value-add within the reseller was simply any company that could supply multiple products. Now the onus is on the reseller to provide insight into infrastructure and environments, understanding clients business and taking their needs to heart.
 
A value-added reseller today should provide clients with advice on what product to install where, how to implement the product, how it will affect the business in other areas. At the same time, the reseller needs to provide long-term support on that product and include recommendations on how to go about maintaining a sound IT infrastructure.
 
And what of the roles of vendors and distributors? Today vendors are more discerning in their selection of prospective distribution partners. The level of interaction between vendor and distributor has intensified, and it is no longer a matter of selecting a distributor, dropping off a product line and waiting for things to happen. Nor is it a case of a distributor adopting a range of product, deciding exclusively on an approach to market and going it alone.
 
The basic premise is that the channel has developed, and operators within it have been forced to shape up or ship out. Whilst this is still an ongoing process, the so-called 'die-hards' in the industry who advocate a 'my way or the highway' approach, are falling by the wayside. There is little room for those who are not prepared to change.