Intelligent Tech Channels Issue 13 | Page 27

REGIONAL CHANNELS K enya-based Mitsumi Distribution, that manages both volume and value supply chain distribution, has been performing with stable and growth operations despite the challenging regional market circumstances. Mitesh Shah, Managing Director of Mitsumi Distribution, points out that this is because of its business model. “We have always been a micro distribution company and have never relied on any sub-distribution model.” Mitsumi Distribution works on the model of keeping in-country stocks and manpower wherever it operates. This includes Tanzania, Uganda, Rwanda, Ethiopia, Ghana, Nigeria, Cameron, Algeria, UAE, Qatar, Kuwait and Kenya as well. By having sufficient scale of operations in multiple countries for its multiple vendor partners, Mitsumi Distribution is able to better manage its cost of operations in comparison to other distributors and maintain its profitability. By being present in multiple countries it can also better manage local credit, risk and compliance issues ahead of other distributors, with smaller operations. “One of the reasons we are stable and are able to grow despite challenging market circumstances is thanks to our business model. We have in-country stocking and manpower in all the countries we are present in, which helps us to cater to the market more effectively. This has enabled us to have better margins when compared to other distributors. Moreover, we understand consumer demands and credit systems in the market,” explains Shah. Mitsumi Distribution maintains state-of- the-art warehouses in 12 countries as well as well-equipped service centers across the African continent. Every year by virtue of its operations it is increasing and consolidating its position across the African continent. Partner enablement Mitsumi Distribution continuously enhances its market presence by working with them for authorised channel business. We consistently run anti-piracy campaigns that creates awareness amongst the channel community to buy genuine products. We plan to hold blitz campaigns to educate resellers on the huge risks in dealing in grey and how to mitigate this challenge,” says Shah. Mitsumi Distribution has also been expanding out of Africa into the Middle East, and from Middle East into Africa, leveraging its primary vendor partner relationships including HP Inc and Dell EMC. Mitsumi Distribution was recently awarded selling rights into Middle East for HP Supplies and Dell Consumer products. It was also awarded selling rights for Dell EMC Enterprise solutions into Africa. To better manage its Middle East operations, Mitsumi Distribution recently opened new offices in Kuwait and Qatar. hand-in-hand with its channel partners. Mitsumi Distribution resells its volume and value products and solutions through value added resellers selling to the business and commercial sectors. Mitsumi Distribution supports channel growth and development through periodic and frequent partner meetings, briefings, promotional schemes and incentives and accredited training programmes. Also, part of the channel enablement activities is invited visits by product and solution experts from vendors for special events, with the presence of leading channel partners. Mitsumi Distribution also provides various other types of marketing and technical support for its channel partners. Mitsumi Distribution regularly conducts road shows and events for its channel partners across Africa. One such recent road show initiative was to sensitise channel partners about the need to trade in genuine and original products, produced and shipped by the vendor manufacturer. “Mitsumi encourages and invites all resellers across Africa to partner Business drivers For Mitsumi Distribution, demand for PC hardware, mobile consumer, and commercial business were the main drivers of its revenue growth. “We also saw growth in the UAE and GCC countries across Dell Consumer and HP consumables business,” says Shah. Even with its present operations, Mitsumi Distribution offers significant credit and logistics service support for its reseller partners in Africa. This is reflected in the growth of its channel spread. In addition, various sales incentive schemes run throughout the year in partnership with vendors to encourage sales growth and bring vendors and dealers closer together. Moving forward, in order to systematically support its all-round growth, Mitsumi Distribution is investing in best of breed solutions in logistics, in-country services, tele-sales, field sales, channel marketing, end user pull, finance and credit, and geographical presence. “We are investing in all functions and intend to be best in class,” he adds. 27