UPDATE: Samsung cuts distributors

Samsung’s printers division has dropped four distributors as part of plans to realign its channels into business and consumer areas.

The four distributors cut are TodayTech, Austar, JLC Computers and Daitronics. The changes only relate to printers, multifunction machines and supplies. National sales manager for print, Greg Wallis, told ARN it will retain Ingram Micro, Dynamic Supplies, Westan, Altech, J Mills, XiT, Cellnet and Alloys.

The overhauled line-up comes into effect January 1.

As previously reported in ARN, Samsung commenced a review of its printer distributors in September in an effort to improve channel relationships and grow sales of its expanding SMB and mid-range product line. At the time, Wallis said he wanted to cut down its distribution numbers and focus on partners providing the most value. Many of Samsung’s printer partners originally came on-board to distribute notebooks, monitors and hard drives.

“We brought on print-focused players like Alloys and Dynamic in early 2008 and we were always going to review distributors,” Wallis said. “Although we don’t have formal targets for tier-two distributors, those cut were basically not meeting our KPIs.

“We really only got the print team in place in March 2007 and we inherited a lot of distributors we shouldn’t have.”

TodayTech managing director, Jack Zhong, said it had not been extensively engaged with Samsung’s printing business and was not concerned by the changes. The distributor will retain its relationship with the Samsung monitors team.

“We are a very long and loyal customer of Canon’s for printing and will continue to focus on that,” he said.

Wallis said he was in negotiations to cut a further two distributors.

“My plan is to reduce further to align with our planned focus on B2B in 2009, ideally down to six or seven maximum with our channels split by B2C and B2B,” he said.

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