Tag: Global Technology Distribution Council

Nuvias joins Global Technology Distribution Council club

Posted on February 2, 2022 by - News

Nuvias has announced an elite club of channel players called the Global Technology Distribution Council (GTDC).

The consortium members include Exclusive Networks, Exertis, Ingram Micro, Infinigate, CMS Distribution and Arrow Electronics are responsible for more than $150 billion of sales of products, services and solutions.

Nuvias is a $750 million company with offices across Europe, it claims.

Two tier model still the best way

Posted on October 16, 2020 by - News

The classic two-tier model, where the skills and assets of distributors and resellers are used, is still best way for vendors to get higher returns from their go-to-market strategy according to research from the Global Technology Distribution Council (GTDC).

The industry organisation has issued its latest “Distribution’s edge: An economic analysis of routes to market for ICT products and services report” which contrasts benefits of going direct, using a single-tier model, or opting for a two-tier go-to-market strategy.

The report made the point that choosing to go direct – something startups often do to try to keep control of the sales process – was more expensive and limiting than working with distribution, which could reach customers via a wide network of resellers.

Those choosing to operate direct also faced high selling, general and administrative (SG&A) costs, limits to scaling caused by staffing levels and challenges getting to small and medium-sized enterprise (SME) customers, it said.

Days of vendors bossing distributors about are nearly gone

Posted on November 30, 2017 by - News

hqdefaultResearch from the Global Technology Distribution Council (GTDC) suggests that the days of vendors telling distributors what to do are nearly over.

In its latest Landscape and Disruption Trends and Challenges to 2022 report, the council notes that there are greater levels of collaboration between vendors and their channel partners and many want to increase that in the future.

GTDC in EMEA general manager Peter van den Berg said that the distributor knows the vendors and works on solutions and knows how to glue them together. Distributors are in the middle with knowledge and can handle the education and training.

The GTDC research found that the majority of vendors, 60 percent, saw more of their business going through two-tier distribution in the next three to five years, with value-added players getting the bulk of that business.

Not only do vendors expect more business to go through distribution but there is an expectation that more of their product and service portfolios will also go via that level of the channel.

Performance rather than cost is one of the key considerations for those choosing to work with a distributor, and those that want to remain market leaders will need to invest in making sure they can help vendors tap into growth areas.

Distributors needed to provide digital skills and maintain speed and flexibility.

Despite all of the hype about AI, the next big thing to hit the channel is going to be IoT and distribution needs to be in a position to help integrate solutions for the SME market, the report said.

The data that distributors gain working with vendors and resellers is also going to become a useful tool with the need for more analysis of that information to not only improve the business but share back with vendors.