American Power Conversion (APC) has axed two regional distributors to concentrate on its business with Tech Pacific, Ingram Micro, and Express Data.
Newly-appointed general manager for A/NZ, Paul Munten, said the power protection vendor’s decision to trim back was based on performance.
“We were looking at consolidating and keeping our distributors focused on our business. We cannot carry any passengers," Munten he said. “It’s expensive to manage a channel as a vendor but the base that we have now is the one we are going forward with.”
The ousted distributors are Anixter, which serves eastern Australia, and Perth-based J Mills.
J Mills managing director, Alan Duncan, said APC was probably disappointed with recent sales figures and hadn’t been given the focus it needed.
By way of explanation, he pointed out that J Mills had been a distributor of rival UPS supplier, Emerson, for 12 years and had recently become its master distributor for Western and Southern Australia. It had handled APC for less than three years.
Anixter managing director, Wayne Bogart, said APC probably misunderstood the niche distributor’s value proposition.
Anixter generates sales by directly contacting end-user customers and while it did not win much business for APC, Bogart said his firm introduced APC to many large corporates.
North Sydney-based Munten, who will develop his company’s marketing strategy, recently replaced Leanne Cunnold. She was promoted to general manager for South Asia.