Q & A
EDITOR ’ S
One thing is clear from the key 2021 trends – agility is key for success in today ’ s wholesale IT distribution industry with technology playing a crucial role for market leaders , distributors need to make continuous innovation an inherent part of their operating model . To build an innovation-friendly culture , distributors must invest in expert skill sets , while establishing a value and change management practice that supports organisational ambitions .
The distribution business is getting more and more competitive with wider options for consumers , higher direct selling going
LUCAS JIANG , GM , TP-LINK MEA FZE
on among manufacturers , and increasingly tighter margins . Digital business is all about using technology to create new products , business models , as well as operating models . One of biggest challenges faced by IT distributors is optimisation , often because they confuse it with transformation . Optimisation is where technology is being harnessed to improve customer engagement or sell more solutions and services . Another classic challenge for distributors is maintaining optimal inventory levels while business has been made harder by faster shipping expectations , a wider range of products that must be kept in stock , and more variable sales cycles .
Over the years , distribution has proven itself to be a resilient and innovative sector that is quickly adapting to the macroeconomic climate , with a large majority of distributors already adopting Digital Transformation strategies . IT distributors are leveraging cloud technology to help prepare businesses and their workforce for the future . IT distributors understand the key
One of biggest challenges faced by IT distributors is optimisation , often because they confuse it with transformation . role technology plays in optimising supply chains and accessing real-time data analytics to predict future demand .
There is no doubt that distributors play critical roles across sectors and despite the continuous variability of the distribution business across sectors , they must take a thorough-cycle view of this crisis , learn from past downturns , understand what has changed , and take effective steps to prepare for sustenance and recovery . They need to prioritise on developing a nimble cost structure . They need to monitor and prioritise cash-releasing levers – working capital and accounts receivable and payable . They also need to diversify revenue streams . Diversified portfolios enable distributors to shift their focus to high-growth and highprofit clients .
Despite the challenges that the pandemic brought , IT leaders like TP-Link learned many valuable lessons and applied them to help business thrive . From learning how to quickly move the entire organisation to remote work model , creating a secure work environment for all and prioritising digital initiatives more than before , this era of lockdowns and re-openings has been a been a gaining experience .
We realised that the pandemic situation is highly dynamic , and as new information comes to light every day , we continue to work on upgrades . Our outlook remains committed to working closely with our global suppliers and channel partners to ensure smooth availability and continued operations of our solutions and services for the rest of the year and in the year ahead .
52