Distribution consolidating products

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The surprise is that it took so long to find one, especially given the distributor’s strong portfolio of security products.After all, security technology is the hot commodity on the market. More product and a consolidated point of sale, mostly.And the deal comes months after China-based HNA Group completed its acquisition of Ingram Micro and Tech Data closed its takeover of Avnet’s distribution business.But before getting all excited about consolidation creating distribution powerhouses, let’s take a step back and look at the broader market trends.

In a conventional distribution system, goods are stored in a distribution center (or kept in inventory at the supplier) and wait until ordered by a customer.

If product is sold as a service, and services are available everywhere, what role does distribution play in the facilitation of channels and sales? First, the Westcon-Comstor sale shouldn’t come as a surprise.

Many people in the know have been aware that Datatec, Westcon’s South Africa parent company, was seeking a buyer for a while.

Cross-docking is particularly relevant to the retail sector (often within large retailers), to parcel deliveries (sortation centers), but can also be applied to manufacturing and distribution.

Its advantages involve a minimization of warehousing and economies of scale in outbound flows (from the distribution center to the customers).

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