Up to now our manufacturers have focused on special distributors like us. And I thought they understood why this makes sense, and was generated for the entire Channel Value. Unfortunately now I have doubts. When some manufacturers flirt with IT distributors they risk tearing apart what was previously painstakingly put together.

Up to now the manufacturers decided which products they wanted to bring onto the market. The retailer and the end customer then decide whether the product is a success or not. And the manufacturers would like to continue this way.

Unfortunately, the trend shows that increasingly more of our manufacturers are pondering marketing their devices via IT distributors too. Man is that short-sighted! Then the controllers of the IT distributors would decide if the product is available or not.

We deal with the fact that we are shlepping around roughly 60 days worth of stock with us. From a business perspective, this does not make sense when you first hear it. But we see it as our duty to also have "rare" articles on stock, so that our retailers do not need warehouses. The 60 days are an average value anyway. Those who are quick on the ball only need 20 days; on the contrary, some special products only once a year. In large distribution such things are rigorously rejected. For example, if barcode scanner A is not successful, then it will no longer be part of the program. If a customer needs scanner A though, and sees it is no longer available, then he will automatically choose scanner B. And just like that, product A goes from being a slow-moving item to being a dead item.

Of course the IT distributors are putting on the pressure. So what is the logical reaction of the special distributors? Since we also live off profit, we will also give priority to devices made by other manufacturers - it is a simple matter of survival. And just like that, you trip up a manufacturer. Then he notices that a large IT distributor, with millions of products and hundreds of manufacturers cannot be forced to make recommendations - they only distribute goods. This means he can never actively find new business for the manufacturers.

There is nothing left for the manufacturers to do but establish their own distribution and hire business development managers to do the job of the special distributors. Since most IT distributors cannot afford sound telephone support, they will also need a support call center. They also have no interest in repairing devices themselves, so they also need a repair service.

Since slow-moving products are not selling well (due to long delivery times), producers are suddenly forced to establish regional warehouses out of self-preservation, in order to quickly supply distributors, since only fast-moving products are stored.

Then it is clear to the manufacturer: rats! I do not actually need distributors, because I could also ship packages. The IT distribution has such a large percentage of sales (because the specialists have lost interest) that no manufacturer trusts itself to break the cycle. We are not only talking about whether or not it makes sense, but also the manufacturing sales manager's bonus. Even if it makes sense, he would never risk the fact that this decision could result in sales being delayed a month, because he would be losing his bonus.

This all may sound shocking. If you go into detail, there are many more issues as to why manufacturers should be careful. Among other reasons our retailers are selling these special products because there is a higher margin to be earned than on a hard drive. That is why the retailers have no interest whatsoever that our products become commodities, and quickly appear on cheap online shops thanks to XML feeds. They partially do not know that selling something, though lacking recommedation, also destroys the price.

The consequences are really bad for manufacturers: many smart retailers revamp their solutions immediately to other products, as soon as the margin appears by a broadliner. It is way too simple for the end consumer to compare prices and then select a device which is not available everywhere. Conclusion: please think long-term, just as we businesses do, and do not only live from quarter to quarter.