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Chapter 1: The Market... Understanding Trends that Influence Distribution
Future vision: Trends to watch – The Distribution System for Professional Large Displays by Interconnection Consulting – The European Projector Market Channel Development by Interconnection Consulting – The Monitor Market: Research and Statistics by Meko – The Analyst’s Point of View: I.T. vs A.V. Channel, interview with Alastair Edwards, Canalys – Adding Value in Projector Sales (…InFocus survey reveals new opportunities for the channel) – The World Flat Panel TV Market: interview with David Naranjo, Displaysearch – The Future of HDTV in Europe: interview with George T. Waters, International Academy of Broadcasting – The Market for HDTV in Europe: interview with Pacome Revillon, Euroconsult – The Roadmap of the World’s Top IT Distributor, interview with Peter Van Den Berg, Ingram Micro – Spotlight on a high potential market, Ukraine: interview with Oleg Shkula, Leater – The German Market: Europe's Stalwart (still?), interview with Thomas Gerner, Kindermann
Chapter 2: Vendors Strategies In EMEA
Getting the contact right: Uses and advantages of Cleverdis manufacturer presentation pages – Choosing a manufacturing partner…: When product offers are increasingly similar by Loïc Rivière – Company Strategy Presentation
WHO’S WHO at ISE 2006
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PETER VAN DEN BERG
Vice President – Vendor Management and Operations
Ingram Micro Europe
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Since joining Ingram Micro in 1993, Van den Berg has held various management positions within the company including Chief Financial Officer Ingram Micro Netherlands, CFO Ingram Micro Northern Europe, Regional Integration Manager Ingram Micro Latin America, Vice President Purchasing Ingram Micro Europe. Before joining Ingram Micro, Van den Berg worked at Price Waterhouse, ARCO Chemicals in the Netherlands and Merison Holiding in the Netherlands.
Ingram Micro Inc. is the world's largest technology distributor and a leading technology sales, marketing and logistics company. As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services and product aggregation and distribution.
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When trying to come to grips with how distribution channels are changing in EMEA, it is of course important to hear from analysts in the field. But it’s even more vital to gain an overview from a company which is at the very heart of the current market revolution. Peter Van Den Berg is the prime contact for vendors dealing with Ingram Micro at a European level. His responsibilities include vendor and inventory management, product procurement, operations management of Ingram Micro's logistics network including carriers and freight forwarders, and the supervision of Ingram Micro ten distribution centres across Europe. We asked him to tell us about the current state of affairs in the EMEA distribution channel and how manufacturers’ distribution policies are evolving with time.
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Peter Van Den Berg: We are still seeing a favourable trend towards distribution in Europe, with continuous pressure on margin and product lifecycles that are getting shorter and shorter. This is forcing manufacturers to look at a more efficient supply chain and to focus on a limited number of distributors, to get maximum attention. At the same time the convergence trend is bringing IT specifics into consumer electronics products... and IT distributors are bringing their knowledge to the business.
Cleverdis: How is the distribution of AV equipment evolving and how can IT distributors add value today?
P.V.D.B: IT distributors are very well positioned to play a bigger role in the distribution of AV equipment for several reasons:
- Product life cycles are increasingly becoming shorter while price erosion is getting higher in this product segment... a phenomenon IT distributors are used to deal with.
- IT distribution has been able to drive down its costs significantly, therefore current operating costs levels are very competitive.
- The customer base that IT distributors are addressing today is becoming more and more similar to the traditional AV base.
- Finally, AV products are becoming more complex to operate and connect. So Itmanagers are having more influence on buying decisions, and selecting an IT distributor becomes natural.
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How is digital convergence affecting the market?
P.V.D.B: It will drive traditional AV and CE retailers towards a different business. In addition, a new kind of retailer is appearing, like Mediamarkt, which could drive many of the traditional retailers out of business.
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There might be room for a new type of retailer, who focuses on solutions for the digital home and who is capable of installing and maintaining them. Those will shift from a product selling business to a service selling business…
What do you expect from manufacturers?
P.V.D.B: We expect them to help drive the change that is needed, to make this channel more efficient and effective. They need to provide training to resellers and to reinforce the solution selling message rather than a product selling one.
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Resellers will have to benefit from next day delivery and reduced inventory to cope with rapidly declining margins. The savings obtained will have to be invested in more aggressive marketing campaigns to get this message across.
Can you explain the general structure of Ingram Micro in Europe and the kind of marketing support you offer manufacturers?
P.V.D.B: In general, customer focused activities are executed locally, but we have a small European team of account managers to deal with customers who are more European. Activities that are less customer-focused are dealt with in a pan- European approach: maintenance of the article database and product notes, relationships with key vendors in each category, purchasing, warehousing, pan- European marketing activities, etc.
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Most marketing activities target a specific customer group. We do direct mailings, advertising, web banners and emarketing, customised and multi-vendor campaigns, product bundling activities, as well as seminars and road-shows. We also organise Pan European focus campaigns, such as Mobility focus campaigns, software or server campaigns.
How do you deal with reverse logistics and how have you prepared for the WEEE Directive?
P.V.D.B: For reverse logistics, we partner with specialised third party call centres (for technical support and after-sales service questions) and with the most suitable carriers in our network for picking-up defective products. In all cases we are the main contractor for the manufacturer. As for the Directive, we are fully ready: in countries where the Directive is implemented, we have relationships in place with product return organisations. The appropriate reporting has been set up and we are ready to fulfil the needs of manufacturers who are not ready for this or who would like to outsource this requirement.
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