First we had virtual resellers -- now meet the virtual distributor. Janteknology today revealed its ambitious plans to grow its warehouse-free distribution business based totally on the Internet.
New managing director Glenn Miller told ARNnet today he's looking to grow the company's reseller base from 600 to "as many as I can get my hands on".
Janteknology is a niche distributor operating from Sydney's Baulkham Hills servicing the Australian and New Zealand markets with a range of security and communications software products including Wingate, MDaemon, MailScan, Conceal, Firewall, eEye, PC Guardian and Web Spy.
But beyond the products is an Internet-centric business model Miller claims is yet to be exploited by the channel.
With no physical warehouse, Janteknology saves on many of the expensive overheads associated with box moving. Miller reports his focus is not stock turn, but cash turn.
He explained that customers first download the required software from either a vendor or reseller's Web site for a 30-day trial. Following the trial, the customer then visits the reseller or locates one via Janteknology's Web site to download a key to unlock the software.
"The distribution process moves from being a very overt physically intrusive one to become very discrete," he said.
According to Miller, the model offers an immediacy to product delivery not even the big box movers can match. The only exception is possible time zone delays with the US when it comes to acquiring product keys, he added.
When asked what value Janteknology can offer without a warehouse, Miller responded that its value lies in marketing.
Miller defines the company's role as "market making" -- the ability to take selected products from around the world and develop new markets in Australia and New Zealand through the channel.
Miller himself is known to many in the channel from his time with database vendor Ashton Tate, Sperry and US-based Harris Corporation. His foray into the IT industry came courtesy of his own company, The Paradigm Agency, which operated as the agent for McAfee in 1991. Miller sold the business to McAfee in 1997.
Meanwhile, Janteknology itself used to be a systems integrator before becoming a distributor in 1994. It has just 10 employees but plans to add sales and support staff as the business grows.www.janteknology.com.au