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Siltek targets R2-billion system builder market

Johannesburg, 17 Apr 2000

Siltek Limited, the JSE-listed focused Information Technology (IT) Supply Chain Group, is gearing up to better meet the needs of SA's R2-billion system builder and OEM market.

The group's focused IT Components Division is being expanded to provide system builders, OEMs and VARs and integrators with one-stop access to all the components they require to deliver complete PC systems to their customers.

The division - headed by Simon Campbell-Young - now incorporates two companies: Memtek Component Distribution, which focuses on the distribution of fast-moving IT components such as memory modules, processors and hard drives; and Multimedia Warehouse, Siltek's joint venture with JSE-listed MMW Technology Holdings.

Rob Matthews, MD of Siltek, says Multimedia Warehouse's product range - sound and graphic cards, modems, CD and DVD ROMs and readers, SCSI drives and RAID controllers and cabinets - is complementary to Memtek's, and requires the same support and logistics infrastructure.

Following the formation of the Multimedia Warehouse joint venture in September last year, the company was accommodated within SDD. At that stage, SDD's adoption of the group's back-office and logistics infrastructure was most advanced.

This infrastructure has since been rolled out to and bedded down in all Siltek IT Supply Chain group companies and divisions.

"Repositioning of Multimedia Warehouse within the Siltek IT Components Division - rather than in SDD which is geared to deliver complete systems to the channel - will enable the group to consolidate its leading position in the integrator/sub-distributor channel and grow its presence in the reseller market," Matthews adds.

Memtek and Multimedia Warehouse will retain their identities, but will leverage the division's specialist efficiencies in terms of product procurement and distribution. Tim Humphrey-Davies will continue to head the Multimedia Warehouse operation which is scheduled to relocate to Memtek's premises on July 1.

"The products offered by Memtek and Multimedia Warehouse are susceptible to rapid obsolescence, and time to move product into the channel is at a premium. Indeed, we work on a seven-day turnaround of our component stock - compared to an average 30-day turnaround or even longer for the Siltek divisions and companies which provide complete or specialist systems," explains Campbell-Young who will also continue in his position as MD of Memtek.

"In addition, the back-office systems and logistics capability within the Components Division have the flexibility to accommodate the market's need for speed, as well as the generally smaller quantities in which product is supplied."

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