Dell: 'Channel wanted distribution, so we gave it distribution'

Vendor adds Tech Data as last piece in UK distribution puzzle as part of 'omni-channel' approach

Dell claims it has achieved "100 per cent" coverage of the UK reseller market through its appointment of the country's largest distributor, Tech Data.

Working alongside incumbent broadliners Exertis and Ingram Micro, Tech Data will initially focus on Dell's client devices before ramping up to offer the vendor's entire end-to-end portfolio.

Talking to CRN, Dell UK channel director Sarah Shields said forging new business in the SMB space was a key motivation behind the signing.

"There were over 200,000 new UK companies last year alone and when we look at the great expanse of small business, we think we can do much better," she said.

"Tech Data has some amazing tools and visibility in that marketplace and it just makes sense."

Martin Boyce, UK and Ireland sales director at Tech Data, stressed that the distributor touches 9,500 UK SMB resellers, including 4,000 on a daily basis, and ships almost 12,500 orders a day from its 5,000 sq ft Magna Park centre.

Ralf Jordan, executive director of broadline distribution EMEA at Dell, added: "When you look at our reach into the UK marketplace with Exertis, Ingram and Tech Data on board, we basically now cover 100 per cent of the reseller market that exists out there."

Shields admitted Dell is still learning the distribution game and is therefore conducting a "slow-to-fast ramp process" with Tech Data to ensure the duo's systems are working in sync before too much strain is applied.

"The channel wanted to have distribution, so we introduced distribution," she said.

"[Resellers] can still buy direct. This is all about our omni-channel approach, so if a reseller wants to buy from Dell or from the website, they can, and if they want to buy from distribution, they can. What does distribution give to a reseller? It gives them access to additional credit and it was our resellers that are already buying from us that said we want to have a choice."

She added: "We are learning new tricks as we go along. Our slower ramp has been our biggest asset, so when we do it, we can do it properly."

Boyce claimed distribution offers resellers obvious benefits over and above just logistics and credit.

"If you look at some of the largest resellers, their biggest challenge historically in dealing with Dell, or direct with any manufacturer, is around their ability to support things such as public sector rollouts," he said. "Introduction of distribution in that environment becomes an enabler."

The signing of the UK contract (illustrated by a meeting between Dell UK boss Tim Griffin and Tech Data's opposite number, Andy Gass, pictured) marks the latest stage of a pan-European rollout of Tech Data and Dell's global relationship, with the duo already working together in France and the Nordics.

Jordan said the pair's European alliance should be seen within the context of the evolution of Dell's channel strategy since it launched Partner Direct in 2008.

"If you look at [Dell's] fiscal year that ended at the end of January, on a global basis, the channel outgrew the market by a factor of three or four times," he said. "When you look at EMEA, it was even beyond that and that shows the focus on the channel there is and for the channel model you need a solid distribution set-up to have reach into the region."