SYNNEX Australia plans to have its New Zealand operation running within the next six weeks, but is not yet revealing which vendors it will represent here.
The distributor, which is part of Synnex Corporation, the world’s third-largest distributor of IT products, announced plans to open a local subsidiary last month.
It has already registered a local company, Synnex New Zealand, and Synnex Australia’s Melbourne-based MD Frank Sheu was in the country this week to conduct interviews for several managerial positions and to scout for premises in Auckland.
But Sheu could not yet reveal which brands the company will stock in New Zealand, saying he is in final negotiations with a number of vendors.
“We are not ready to release details yet. Vendors have been asking us to set up a New Zealand subsidiary for some time,” he says.
In Australia Synnex distributes several major vendors including Hewlett-Packard, IBM, Microsoft, Canon and Philips.
Sheu plans to appoint an operations mana-ger, product manager and sales manager.
“We’ve had a good number of applicants for various positions,” says Sheu, adding the local management team will be responsible for appointing additional support staff.
The local Synnex office is likely to be based in Mt Wellington, just south of the Auckland CBD and on the opposite end of the city to its largest rival Ingram Micro.
Sheu says the recent decision by fellow Australian Bluechip Infotech to shut its New Zealand operation has not soured the company on expanding across the Tasman. He believes Synnex will succeed as it has the backing of an international group, strong relationships with mainstream vendors and a proven business model. “With margins decreasing there is no room for mistakes in distribution. If you do not have very effective business processes you will not survive. We have 25 years of accumulated knowledge of managing channels, vendors and warranties,” he says.
In Australia Synnex is particularly strong in supplying local system builders and it will initially focus on the same market here.
Sheu aims to build the New Zealand operation into a $50 million-a-year business within three years, but believes the company could eventually turnover $100 million annually.