Ensuring that vendors remain satisfied with their representation under the Ingram Micro and Tech Pacific partnership will be one of the biggest challenges facing the new company.
Ingram Micro managing director John Dunbar says the merged operation must ensure that it does not lose focus on the vendors it represents or it could lose business.
“One of the big challenges of [the] new company will be to ensure the needs of all vendors, big and small, are met as they were before. The combined company cannot afford to go backwards because it is losing vendors due to a lack of focus,” he says.
Vendors such as 3Com and Lexmark, who in recent months ended relationships with Tech Pacific as they felt they were not enjoying enough focus and entered sole distribution agreements with Ingram Micro, should welcome this approach. Dunbar says no vendors have so far expressed discontent over the merger.
“I think they are sitting back and watching how we do things.”
He acknowledges the need for strong competition between different brands within the new company.
“We have to ensure there are walls between different brands so they can compete actively for business,” says Dunbar, adding he does not think a lack of competition in the market will become a problem as vendors, and not distributors, control distribution.