Samsung has cut ties with Altech as part of a massive rationalisation of its monitor distribution network. In the process, it has added Dicker Data to the line-up in an attempt gain more traction in the B2B and SMB space.
Samsung national sales manager for monitors and storage, Joe Serra, said the decision to cut up to five distributors was prompted by the economic climate. He confirmed Altech had been dropped, but would not name the other four national and state-based distributors facing the same fate.
“There’s rationale behind it. We’re trying to achieve a bigger result this year than last year, but through a more refined distribution policy,” he said. “We looked at the year ahead and how we’re going to try and apply the budget that we’ve been given and felt the ‘less is more’ strategy is probably correct.”
Samsung previously had as many as 30 distributors catering for its monitor business. Long-term, Serra said it would reduce that to seven.
“It’s a big jump but we’ve done much bigger cuts than that in the past. Over the years, we’ve been trying to reduce it down to a more manageable number, obviously with the global conditioning we felt the need to make those changes now,” he said. “It’s a large number, but it didn’t relate to the proportionality of turnover. We can quite easily take those smaller account distributors and put them through the main distributors.”
Altech will continue to access Samsung printers, along with optical and hard drives. Marketing manager, Kevin Hartin, said the vendor’s LCDs represented reasonable business for the distributor, but it was clocking up some good figures with its BenQ portfolio.
“It was a great product and I suppose we’ve been held back by stock availability issues,” Hartin said. “From what I understand, they’ve had a few too many distributors around the place, and it was always a little difficult with the way they do product allocations and so forth.”
Meanwhile, new addition, Dicker Data, joins Ingram Micro and Westan in the line up, along with state-based distributors XiT, Daitronics, Leading Pacific, and J Mills. It will be distributing Samsung monitors, public displays and storage products.
Dicker sales manager, Chris Price, said Samsung was strong in the SMB and corporate arena.
“We had a bit of a gap in corporate monitors and public displays,” he said. “It’s a really good fit for the types of products we’re selling. We would see them as one of our most important vendors moving forward.”
Serra claimed the deal with Dicker would let the vendor address a far greater market.
“We felt that from a B2B and SMB perspective, we were probably a little bit underdone in our distribution,” he said. “We looked at the available players out there and Dicker was a really good fit for us.”
In December, Samsung’s printer division dropped four distributors: TodayTech, Austar, JLC Computers and Daitronics.