8 Replies Last post: Jul 12, 2009 12:16 PM by smearjay  
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Fourthrail Diamond 708 posts since
Mar 30, 2007

Jul 1, 2009 5:17 PM

Synnex Beats Q2 Estimates, Looks Ahead To UC, Health-Care Expansion

Synnex beats Wall Street analysts for its second fiscal quarter; CEO champions health care and unified communications as growth areas. Read the full article at Channelweb via http://www.crn.com/it-channel/218102159.

Relayer Newbie 25 posts since
Aug 17, 2007

Synnex is still small enough to turn on a dime. Both TECD and IM, great companies but making changes is like trying to stear a cruise ship.

Steven Burke Gold 11 posts since
Feb 28, 2007

Can you give some specific examples of how Synnex has been more flexible and moved quicker to respond than either Ingram or Tech Data? Also have you looked at D&H? They are known for their great sales reps who go above and beyond the call of duty to meet the demands of their solution provider customers?

DukeBruno Silver 75 posts since
Mar 31, 2007

Steven, we have accounts at Tech Data, Ingram, D&H and Synnex. Synnex is our favorite disty, hands down.

 

All four give us decent pricing (although the variations on some products can be amazing--Ingram's prices on cables stink,for example) and availability on the products that we buy regularly is usually good across the board.

 

I like that TD, D&H and Synnex allow us to pay invoices on-line.  Ingram is odd-man-out here, offering a direct debit program (they automatically pull funds from your bank account when invoices are due) but while the others allow us to pick when to pay invoices, Ingram makes us write a check and send it snail mail.

 

While probably 80% of our orders are done via the disty web sites, it's still important that we have a sales rep who knows our account, knows our business and can jump in when the need arises.  At Tech Data and Ingram our account is assigned to a "Small Business Team."  That's OK, but there isn't anyone on the team who really knows what we do nor is there a specific person we can turn to for processing of a special request (demo pricing, for example).  At one point, Ingram even "off-shored" our account with nary a word. Calls would be answered by an Ingram rep whose command of the English language left much to be desired.  After telling Ingram that this needed to be fixed ("OR ELSE") they moved our account State-side once again.

 

At D&H our account was assigned to a sales rep who was worthless.  He wouldn't respond to email, he would never return phone calls. Perhaps he was someone's nephew?  After I complained loudly our account was assigned to a new sales rep who has been fantastic. But now she's out on maternity and the expected call of introduction from her fill-in never came, so we may be back to old patterns at D&H.

 

In a nutshell I think Synnex is doing well because they know how to take care of their customers.  I wish they carried more products (including Blackberry and Adobe licensing) but perhaps one of the reasons that profits are up is that they only work with manufacturers who allow them to make a decent margin on what they sell???

Relayer Newbie 25 posts since
Aug 17, 2007

Give eamples? Are you crazy? Do you know how these companies operate? Synnex is 1/2 the size of TD and 1/3 the size of IM. I worked as an Executive at one of the two latter and gettimg anything done was a battle. You have a meeting to discuss the meeting. Synenn is 1/2 the size, It's like a 400 pound guy running to 440 as appossed to a two hundrered pount guy. You can chane the direction of the company, add or substract program, much easier . A lot more nimble and D&H is the same way. All provide and outstanding serive but market changes are much easier to react to if the company is smaller. Business 101.

Chad B Silver 35 posts since
Mar 12, 2009

Some interesting thoughts here. For those who deal with Synnex, is it size alone that makes them more nimble? I've seen a number of analyst reports following the Q2 earnings that call them a "bright light" in "dark times" and other very poetic things without making much mention of their size as opposed to Ingram and Tech. Let's hear some more examples, if it isn't just, well, size mattering.

Relayer Newbie 25 posts since
Aug 17, 2007

It's really the primary reason, although they also now have Kevin Murai, who came from Ingram and brings best practices from Ingram down to a company the size of Synnex. That's an important factor. They have the knowledge of an Ingram but are obviously more nimble. Overall, they have a good and somewhat new management team, although one portion of the business could use an upgrade in terms of management. But that is a small rather meaningless part. In a high velocity low margin business, the abilty to make changes on the fly is a huge competitive advantage. When you "need a form to order the form that you use to order all the other forms" there is no way to react to market forces in a timely fashion. I am not saying TD and IM are not great companies. All of them are providing tremendous value add in terms of pick pack and ship and most importantly the ability to extend credit in today's economy. They all are successful companies. But right now, the edge goes to Synnex for the reasons stated. Marketshare is also extremely important and my guess that internally, Synnex is very focused on that. But in distribution, there isn't room for 3 huge players.

smearjay Silver 36 posts since
Oct 26, 2008

Synnex is the only distributor (counting Avnet, Arrow, Ingram Micro, and Tech Data). That still has a soul.......

smearjay Silver 36 posts since
Oct 26, 2008

Synnex has the best Outside Sales Force I have ever seen. 5 years ago, they did not have one.

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