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Distribution Central weighs vendor cuts

Distribution Central weighs vendor cuts

Distribution Central is considering cutting five vendors from its local lineup and replacing them with more profitable agencies that it holds across the Tasman.

ANZ marketing director Nick Verykios says he and local country manager Richard Crabb have met with vendors to discuss their plans and wants to phase the changes in over the next three months.

“So far all of [the vendors’] plans have matched what we want to do. I have no preconceived ideas, but ultimately I think it is going to be the vendors that the resellers want to see here.”

He says a decision on the selection of new vendors has not yet been made.

“Most of the brands are already here, such as F5, Riverbed, Clearswift and Extreme Networks. We are having a lot of success with NetApp in Australia, so it makes sense that we start to look at opportunities here.”

He says if vendors are keen to continue working with Distribution Central locally, it will stick with them.

“They need to be actively hunting business. We can’t be a vendor for them, we’re a distributor.”

Verykios also tips a significant boost for Distribution Central as a result of the merger between Avaya and Nortel’s enterprise business. He expects its local business for the agency will double.

The distributor also plans to hire an engineer here soon and will “keep adding staff as required”.

Former country manager Trevor Holland may also rejoin the business, as Verykios says he is recovering well from the back injury that forced him to relinquish his role last year.

“I spoke to him recently about some projects. Some of our vendors need assistance to knock down doors at the end-user level, which Trevor does better than anyone. Potentially, he could work with Avaya since he has experience of Nortel.”

Distribution Central is focusing on upskilling partners to have the credentials to sell more Avaya products, Verykios says.

“Rather than looking for a bunch of new resellers, we want to empower the current people.”

Avaya recently dropped Avnet and Ingram Micro from its ANZ distributor list, meaning Distribution Central and Westcon Group are the only distributors left locally. Agile remains a key partner for Avaya.

Verykios says he does not know much about Westcon Group in New Zealand, but says the company it recently acquired - Datastor - is a “class” firm.

“We have always welcomed working with class organisations because they tend to create business rather than take business. We’re glad that we are sharing [the Avaya] agency with them.”

Distribution Central also wants to grow its F5 and Extreme Networks reseller bases, and is targeting enterprise-focused resellers.

Country manager Richard Crabb is in the process of appointing two more Clearswift partners, which would take local reseller numbers to six.

“Those companies already do business with us and I expect they will become partners in the next six to eight weeks,” says Crabb.


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