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MINOLTA-QMS, SDD strengthen relationship

Johannesburg, 20 Mar 2001

Significant steps have been taken to improve the offered to the reseller channel, by SDD and MINOLTA-QMS, through some trying times for the distribution channels internationally.

"With the decrease in prices on product, and on top of that dwindling margins, it is becoming all the more important for the vendor and distributor to work even closer together, otherwise it will spell . Yet many vendors still seem to have a `them and us` attitude towards the distributors. It is a partnership, and both need to come to the party," stated Rob Mowatt, general manager of MINOLTA-QMS South Africa.

Minolta-QMS and SDD have put measures in place to improve service, stock, stock turn, and thus cash flow resulting in a better bottom line profit. Vendors cannot expect a distributor to operate at gross margins, lower than their operating margin. They will simply drive the distributor out of business. Not a win-win situation.

By making the MINOLTA-QMS laser printer division more and sales focused, will go a long way to reducing costs and improving sales, with MINOLTA-QMS becoming part of the International Brands division within SDD. Here the focus is going to be on retail, tender, education, SOHO, SME and corporate sales for the entry-level product ranges, and providing pre-sales and after sales service to the resellers and end users.

The more specialised products like the colour laser printers and network laser printers, require an education programme which MINOLTA-QMS South Africa has implemented. Offering free sales and technical training for specialised colour laser sales and technical staff for those resellers that want to become focused on offering the best solution and service as far as colour lasers are concerned. The colour laser specialists will have a monthly meeting/training session going through relevant issues regarding the use and implementation of colour laser printers.

The changes in the supply chain into the future, reducing unnecessary costs, and improving service is imperative to the success and growth of the distribution companies, so crucial to the success of their vendor partners. It is not going to get easier, but all it will take is careful planning on a regular basis.

To get resellers trained up, MINOLTA-QMS hosts a "Sales and Knowledge Seminar" every quarter for their Authorised Business Partners, covering new developments in products, product training, and strategic planning sessions. As there are just simply too many resellers to get to, it is far more cost effective to have regional seminars, once a quarter, and send out monthly updates on product marketing.

In a nutshell, by having the vendor, MINOLTA-QMS, the distributor, SDD, and reseller partner, working closer together, the overall cost of getting to market will be drastically reduced, this equating to improved profits to all, yet still offering the same if not better pricing to the end user. A win-win situation for all.

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MINOLTA-QMS, Inc.

MINOLTA-QMS, Inc. is an innovative developer, manufacturer, and supplier of document printing solutions, including color and monochrome laser printers, and associated supplies and accessories for general office, electronic publishing, graphic design, advanced imaging, and home office applications. MINOLTA-QMS, is headquartered in Mobile, Alabama USA, and distributes products through a global network of e-commerce, reseller, and distribution partners. MINOLTA-QMS, Inc. is traded on the New York Stock Exchange under the symbol MQC.