In the beginning, four decades ago, the business model of distributing computer products was based on volume, on the ability to move cases between the manufacturer (or importer) and the customer (a reseller or a company), freeing up the task on representation of brands. The role of the channel consisted of improving the efficiency of the process, lowering costs and remunerating itself with decreasing margins. Essentially, the equation was financing logistics. "I think that the merit of what we do is that we make very little mistakes," boasts Jaume Soler, vice president and general manager of Ingram Micro, the sector leader in Spain, with a laugh, "because mistakes are expensive."
Of glamour, the distribution has very little. But it moves money: in Spain, between January and September, they have been 4,700 million euros (3.4%), according to data from the Context consultancy. Two products –laptops and smartphones– accounted for 33%, while two brands –HP and Apple– accounted for 24%. Software and services already contribute 31%, a goal pursued for years that has come after the end of the pandemic.
“We are obsessed with increasing the sale of solutions by accompanying the reseller from the moment they detect any need from their client: maintenance, continuity, migration or simply more financial flexibility. To comply with this, we have to combine products, technology and services, and not only have we grown in number of brands, but we have also expanded the range of products and solutions available", says Soler.
The number of resellers in Spain is rounded to 12,000, mostly B2B (business to business). Which points to a consolidation, as is happening in other sectors. “It is occurring, especially among resellers. And it is not something new, although it has accelerated, because specialization requires it. I believe that a solid distributor like us and with extensive European coverage is a fundamental factor in a context of scarce technical resources”.
The pandemic altered trends and forced strategies. “At the beginning, there was a tremendous deployment of devices and purchases that triggered growth were anticipated. On the other hand, in servers, storage, software and cloud solutions a situation arose in which efficiency was more pressing, and therefore we responded with investments. Thanks to that we enjoy a certain bonanza despite the fact that the indicators, particularly those of consumption, show an increase in costs”.
The changes are perceptible, he says. “In the traditional model, Ingram Micro added value through a portfolio of products with certain availability and zealously complying with the terms and conditions of packaging, labeling, proof of delivery... that make up the logistics cycle. We have launched new formulas to help our channel to finance the user, because each operation deserves optimal financing”.
In Spain, Ingram Micro employs 450 people dedicated to the distribution activity, in addition to another hundred in a cloud center in Barcelona to provide service to resellers affiliated with its channel: if someone prefers their own cloud, the company sets up one for them. private cloud structure.
Retail distribution is not the most important part of the business. It is far surpassed by the business channel, with a different typology: more integrators than resellers: “there are plenty of specialists who, technologically speaking, are more robust than retailers; but Spain is a country of SMEs, so an agile and healthy channel that knows how to play on all fronts is very convenient”.
