Choosing right VADs for your Business

Imran Ahmed, Head of Channel for Logitech Video Collaboration, Saudi Arabia shares his insights on how to align with the right VAD to grow your business

Today, all kinds of companies with all kinds of products use channels including re-sellers and distributors to sell their products and services, and help provide the best possible experience and support to their customers, worldwide. Much like paint-by-numbers, channel management is an art form – with a checklist. And when it comes time for re-sellers to select the right distributors to work with, several things need to be considered. you’re fortunate to have many outstanding VADs and distributors in channel program, but finding the right partnerships for your business is easier if you know what to look for. And as I worked & managed both Distributors & Value added Distributors with over 2 decades of experience working with various technology partners, I have some insights into how to identify distributors who will not only be an advocate for you, but for the products you sell, and will work to help expand your business.

First, it’s important to note the difference Distributors and Value Added Distributors (VADs). Distributors in general may consist of order takers, and could lack real product knowledge. On the other hand, there are VADs, which provide a broad range of products, stock inventory, operate their own warehouse(s), supply credit to re-sellers, and have dedicated sales teams trained in understanding your products. If you are searching for a long-term relationship with a distributor that will truly be an advocate for your company and product line, VADs are the way to go. Here are the main benefits to using a VAD:

Sales Team: VADs provide a sales team that knows the products, can make recommendations, and will assist you with maneuvering through the system.
Market & Product Specialists: The right VAD knows the market in and out. They can give you advice, data, feedback, and overall insight into the market that you may not have otherwise. They are also fully trained to understand the product, how it works, and whom it benefits.
Training Programs: They regularity provide the product training and hands on training to enable channel partners
Technical Expertise: VADs keep technical experts to support you from solution design to Demonstration and also implementation if needed.
Credit line: VADs provide multiple credit options from credit lines to leasing options for your customers.

Now that you understand the benefits of a VAD versus distributor, here are some things you need to consider when selecting a VAD

Measure the relationships: First, the key to the channel relationship is trust, which means that you need flexible in making adjustments that improve your business performance. While selecting a VAD you have to trust on their policy and business model, as well relationships should in order to build “a solid foundation for both resellers and VADs to gain from in the future”

Inventory: Be weary of “Just-In-Time” shipment of inventory, which is the process of shipping inventory as soon as it is received. If a product is expected to be delivered to the VAD and shipped out the same day to the reseller, any weather event that prevents it can cause a chain reaction of late deliveries and unhappy customers. Make sure the VAD takes this very seriously, and provides tools for you to monitor their inventory in real-time

Credit: What do they require for a credit line? What are their credit terms? You want to choose a VAD that allows your business to expand. Another approach to expanding your credit is implementing a secondary distributor, which doesn’t affect your credit with your primary distributor at all, and can help in unexpected stock out situations that may prevent you from making on-time installations.

Once you have found a VAD that seems to be a good fit for your business, create a strong relationship with them – from the sales representatives to the company executives. A strong partnership between reseller and VAD can make a world of difference in customer service and bottom line sales.

Best level of service happens when a partnership is mutually respected and highly prioritized.

Similar to the old Italian saying, “You can’t make good wine with bad grapes,” you can’t maximize market share with bad channels. As a reseller, your approach to evaluating and selecting the right distributors is a strategic process, but it can make all the difference in the success of your business.

Let us also understand the value of engaging the services of an MSP ( Managed Service Provider). MSPs provide best-of-breed technology platform, periodic technology updates & refresh as per industry best practices.

The cost of delivering IT services gets reduced without hampering service levels because of flexible pricing models.

Customers can choose the right mix of IT services which can scale up or down according to requirements leading to faster TAT and maximum cost benefit.

MSPs improve performance and production by optimizing business processes and better aligning operational areas with overall business goals.

MSSPs helps to avoid unwanted incidents in the operational plant and improve operational and business excellence.

Organization has to strictly adhere to regulatory and compliance requirements.