Distribution numbers involved in IT transactions drop


Distribution numbers involved in IT transactions drop

Simon Quicke

The number of distributors being used as part of the IT supply chain is in decline as resellers look to consolidate the suppliers they work with.

According to a survey of IT distribution from GfK Research the number of players used has been dropping for the last three years with some areas of the channel seeing the level cut by 50%.

GfK also revealed that there is a desire among a significant portion of the reseller base to change the distributor they work with.

The reasons most dealers wanted to make a change was as a result of product lines and service with those distributors not providing decent levels of technical support facing a potentially difficult future.

The GfK findings contrast slightly with the recent views from the Global Technology Distribution Council (GTDC) which revealed that sales through the major US distributors have surpassed pre-recession levels and Europe is gradually heading in the right direction.

The data shows that $2.55bn worth of hardware was shipped by GTDC members in April 2010 compared to $2.52bn two years ago.

In Europe, the number crunching started in July 2008 when revenues were €2.68bn but last month, the sales were edging closer at €2.38bn.

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