The evolution of the South African channel, since the demise of Siltek Distribution Dynamics has indeed been encouraging. Contrary to reports, distributors and resellers have moved beyond the initial period of confusion, and are now running their businesses at a respectable pace.
There are, however, still sceptics that believe vendors were positioned stronger during their Siltek days - a claim that could not be further from the truth.
Distributors are doing really well. We`ve managed to promote vendors in a period that has seen a significant decline in IT spend.
Indeed, we`ve risen to the occasion and worked hard at picking up the pieces, while still having to face an uncertain IT climate.
At Rectron, we`ve always focused on three key elements that have enabled us to steer clear from the mistakes made by other distributors, and subsequently contributed to our own successes.
For one, we`re constantly reassessing our business operations - streamlining them to the best of our ability. Two, we maintain strict financial control, which in turn contributes to our overall financial strength. Lastly, we are today a profitable company due to the tight control of our operational expenses.
We`ve also, during these turbulent times, kept our focus on our core business, which is components distribution, not deviating from a business model that works.
Some positive news - that is set to give the channel a bit of shake-up - is finance minister, Trevor Manuel`s recent budget announcement on the abolishment of ad valorem excise duty on PCs.
This is good news for all concerned. The grey market has been a thorn in our sides for too long, creating market confusion and frustration. However, this announcement will definitely soften the impact of the grey market. PCs and their components will become more affordable and the industry more legitimate.
Another clear indication that SA distribution is alive and kicking is companies` increased involvement in overseas marketplaces. Rectron has enjoyed tremendous successes in the UK and Australia - regions well-known for their highly competitive distribution cultures.
We`ve aggressively expanded our business in these markets and proven that we can compete with international distributors.
Locally, we already distribute a lot of good brands, and also have good relationships with all our suppliers.
In retrospect, things are really looking up for the channel. We have a lot to look forward to, and to work for. There is now a level playing field for distributors, which is indeed a positive position for all of us to be in.
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