Distributors are driving forward Europe's IT market, which has reached an growth rate of 6% year-on-year, the Global Technology Distribution Council (GTDC) has revealed.
Although some European countries experienced a decrease in IT sales in 2016, the UK, Spain, Portugal, Belgium and Norway all noted double-digit growth of the IT market, with GTDC anticipating over the next quarter, sales will grow even further. However, the economy and political landscape has stunted growth in some areas, particularly the UK, where Brexit worries overshadowed spending and in France and Greece, where the economy is suffering too.
But the successes are mostly down to the relationship between vendors and distributors, the GTDC explained. A shift in a distie's role to cover the entire supply chain, rather than the "pick, pack and ship" mantra of old, has had a positive impact. Now, the end-to-end services distributors provide, including becoming a vital resource in vendor go-to-market strategies and offering value-added services, is proving beneficial.
“We come from an industry based on inventory, cost and fixed assets, but the amazing integration between distribution and the vendors has produced an industry with lower inventory, but much higher fulfilment rates," Tim Curran, CEO of GTDC, said. "That makes it more efficient and profitable.”
GTDC also identified the top three most in-demand distributor services: demand generation, education and training, and solutions development.
“Vendors and solution providers are not yet full utilising the range of services on offer from distribution however, hence the campaign, in conjunction with IT Europa to raise awareness," Curran added. "Distribution can also help solution providers with skills shortages, particularly in the technology solutions around cloud. Vendors often say they need help to enable their partners to take advantage for the new ways of working.”
