Keeping ’em all happy
With value and volume-based business model in place, Tech Pacific has
found a unique concoction for success. The result: not only is its cash
register ringing, channel partners and vendors are also in smiles
While globally Tech Pacific is not in the best health, one region the
company has done extremely well is India. And its Mumbai-based
subsidiary posted 48% growth in 2000-01—from Rs 1,171 crore to Rs
1,727 crore to emerge as country’s number one distributor in the DQ
Top 20 list.
Though not very product-specific, the company worked on a distinct
business model. There was the e-commerce value division that provided
technology and software support to resellers and mid-sized system
integrators helping them extend value-added services to customers. Part
of this initiative was a fulfillment or ‘third-party logistics’
service, which offered warehousing and distribution logistics, credit
and collection management, warranty implementation and reseller
interface management. Then it had the volume division looking after the
mass-market products from vendors like Cisco and HP. As part of its
e-commerce initiative, Tech Pacific also connected 1,000 of its 7,000
dealers to regional hubs through VSATs.
With ever-thinning margins in the IT distribution business, Tech
Pacific hopes to make the most of its strengths to retain margins. It
plans to keep its customers—vendors, resellers and dealers—happy by
offering value-adds.
Doorstep delivery of products has seen the normal delivery cycle of
eight hours being cut to a mere two hours. Then there are customized
credit offerings, a one-size-fits-all facility. An expanded branch
network ensures a wider geographic coverage for its vendors. Then, there
is the refurbished Inner-Circle program, which will see the top 100
resellers enjoying special privileges in terms of commercial benefits
and treatment. To top it all, TechPac is utilizing its own resources
better, leading to higher productivity and more revenues.
TECH PACIFIC
