There has been a lot of talk in the industry lately on the future of broad-based distribution. With the advent of the Internet, vendors are able to sell to customers more easily than before. For broad-based distribution companies, value-add in terms of client service and logistics, are the most important factors in securing a customer`s loyalty.
Colin Flatau, managing director of Siltek Distribution Dynamics (SDD) comments, "SDD is South Africa`s largest broad-based distributor, and our specialised infrastructure ensure that we continuously add value to the channel.
In our quest for customer satisfaction, we continue to represent a host of vendors, which can add to our customers` offerings. Our many vendors are the key to our business, allowing our customers, the dealer channel, the convenience of a one stop, distribution shop," he says.
The disparity between vendors cutting out the channel and selling directly and SDD, is that we are able to achieve economies of scale and specialisation in a market where margins are under huge pressure. SDD has a sophisticated centralised back office, providing the engine room for efficiencies of scale, without compromising delivery of specialised services. In addition, SDD`s business structure is based on focused business units and brand teams.
Flatau explains that the distribution model changed a few years ago from a mere logistical operation to one of value-add. "We see ourselves in a `supply partnership` with our channel and the current SDD structure of a `company within a company` concept, allows us to achieve these economies of scale and specialisation within a broad based distribution model.
"This also enables our sales teams to focus their product knowledge. Far from just providing logistics, we have skilled teams of dealer account managers to develop partnerships with our key customers and business development teams to focus on our large base of SME customers," he says.
"SDD`s emphasis on the fulfilment of e-commerce, bridging the gap between the virtual and real worlds, will provide the company with considerable competitive advantage into the future. We are continually developing and nurturing our infrastructure and systems and will keep on fine-tuning our back office operations and looking for new areas of synergy, all aimed at building a lean efficient supply chain engine as well as adding value to our vendors," concludes Flatau.
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SDD
Siltek Distribution Dynamics (SDD), the focused IT company in the Siltek Technology Chain Group, is South Africa`s largest broad-based distributor of information technology. SDD encourages black empowerment opportunities and is the partner of choice of several leading vendors. It distributes a wide range of `best of breed` hardware and software products, as well as peripherals, components and consumables. SDD configures branded hardware and builds-to-order Xylo, its own range of PCs. With a backbone of 429 staff, SDD has branches in Gauteng, Cape Town, Port Elizabeth, East London, Durban, Bloemfontein and Nelspruit. Outside South Africa, the company has partnerships in Namibia, Botswana and Zimbabwe.
Siltek Limited
Siltek Limited is the leader in the Southern African Information Technology (IT) Supply Chain with projected turnover of R3-billion in the year to end-June 2000. Listed on the Johannesburg Stock Exchange, Siltek comprises several complementary operating divisions, each of which is a dominant player in its niche area.