The Future of Distribution - GTDC

1 1 GfK Verein Juli 16| High-tech Distribution 2020 The Future of DistributionA global & joint research project for exploring the Future of the global HighTech Distribution & supply chain landscape2 GfK Verein Juli 16| High-tech Distribution 2020 Copyright GfK VereinAll rights reserved. No part of this publication may be reproduced, or transmitted in any form without the prior (written) permission of the copyright : Ronald FrankGfK VereinGesellschaft f r Konsum-, Markt-und Absatzforschung 101, 90419 NurembergTel.: +49 911 395-2231 and -2368 Fax: +49 911 395-2715 Email: GfK Verein Juli 16| High-tech Distribution 2020 Preface/ Vorwort4 Introduction/ Einleitung5 The essentialsin brief/ Das Wichtigste in K rze71 Challenges along the Supply Chain132 New opportunities to create a bright future193 New technologies are changing the industry264 Global trends & local peculiarities of the supply chain31 Germany34UK35 France36 Spain37 Italy38 Russia39 Brazil40 India41 USA425 Contributors43 The Future of Distribution Table of contentsUniversity of Applied Management /// Institute for Information & Supply Chain Management.

2 Rudolf Aunkofer, PhD4 GfK Verein Juli 16| High-tech Distribution 2020 PrefaceBehind the Scenes, Beyond the Basics Behind the Scenes, Beyond the Basics: Tech Distributors a Nucleus of Channel Value ByTimCurran,CEO,GTDCWhat syourtake?AsCEOoftheGlobalTechnologyDist ributionCouncil(GTDC),I mfortunatetoseethepoweranddepthofthe channel smostsuccessfuldistributors,forexample,d rivingmorethan$ sawell-oiledmachineinmanyrespects, orderfulfillment reliterallyinsideadistributor sfacilitiesorengagedinapartnershipasasol utionproviderorvendor,you , sevidentnowthroughstrategicmovescovering everythingfrommobilecomputing,hyper-conv ergedinfrastructureandsecuritysolutionst oBigData/analytics, ,thechannel ,Tim CurranCEO, Global Technology Distribution Council/// Source.

3 Institute for Information & Supply Chain Management5 GfK Verein Juli 16| High-tech Distribution 2020 Fundamental changes in the global high-tech supply chain (1)Paradigmenwechsel f r die globale HighTechSupply ChainDearReader, ,demandforinfrastructureproducts,suchasn etworkandstoragecomponentsandsolutions, ,globaldistributionseemstobeundergoingas eriesoffundamentalchanges,whichcanbesumm arisedasfollows: Increasingemphasisisbeingplacedoncombine dsolutionscomprisinghardware,softwareand cloudorhybridservices. Itisnolongersufficientinthemediumtermtof ocuspurelyonhardware,thecurrentbreadandb utterofmanydistributors,ifcompaniesareto achieveastrategiccompetitiveadvantageand generatetherequiredmargin.

4 Duringtheirgo-to-marketstrategies,multin ationalvendorswillincreasinglyfocusonpar tneringwithgloballyoratleastregionallyop eratingbroadlinersandspecialistdistribut ors. Localdistributors,whichpredominantlyfocu sonSMEs,willhavetoinvestmoreinsolutionan dserviceconcepts. Thedistributionlandscapewilltendtobecome moreandmoreconcentratedoverthenextfewyea rs, !Cloud,Cloud-L sungenwieauchManagedServicessinddiedisru ptivenTechnologien,dieinderHighTechBranc heaktuellf sungennachwievorhochundauchvielversprech endf ,dersichwiefolgtskizzierenl sst: einkombiniertesL sungsangebotausHardware, reineFokussierungaufHardware,dasBrot-und ButterGesch ftvielerDistributorenvonheute,istmittelf ristignichtmehrausreichendumeinenstrateg ischenWettbewerbsvorteilundsomitdieerfor derlicheMargezugenerieren globaleoderzumindestregionaleBroadlinewi eauchSpezial-Distributionwerdenzunehmend derPartnerkreissein,aufdensichmultinatio naleHerstellerbeiihrergo-2-marketStrateg iefokussierenwerden lokaleDistribution,diesich berwiegendaufdasSMES egmentfokussiert,wirdverst rktinL sungskonzepteinvestierenm ssen derKonzentrationsprozessinderBranchewird sichindenkommendenJahrenehernochmalsvers t rken.

5 WaszuweiterenUnternehmenszusammenschl ssenund bernahmenf hrenwird/// Source: Institute for Information & Supply Chain Management6 GfK Verein Juli 16| High-tech Distribution 2020 Fundamental changes in the global high-tech supply chain (2)Paradigmenwechsel f r die globale HighTechSupply ChainAgainstthisbackground,theGfKVereinj oinedforceswiththeInstituteforInformatio n&SupplyChainManagement(iSCM) 'sleadingdistributororganisations(ABRADI STRI,GTDC&TDAI) , ,GTDCandTDAI aswellastheGfKVerein& , faithfully, Prof Rudolf Aunkofer PhDVordiesemHintergrundhatderGfKVereinzu sammenmitdemInstitutf rInformation&SupplyChainManagement(iSCM) derHochschulef rangewandtesManagementundmitUnterst tzungderweltweitf hrendenDistributor-Organisationen(ABRADI STRI,GTDC&TDAI)

6 EineExpertenbefragunginneun,f rdieglobaleDistributionelementarenM rktendurchgef hrt, lfte2015wurden112 Entscheidungstr gerinneunL ndernausdemSeniorManagementnamhafterITO- HerstellerundHighTechDistributorenmittel sstrukturierterInterviewszuihrenEinsch tzungen&Erwartungenf tzungf !Ichm chtemichandieserStelleauchbeiallenteilne hmendenExperten,denunterst tzendenOrganisationenABRADISTI,GTDC,TDAI wieauchbeiGfKVerein&GfKsehrherzlichf rdieUnterst tzung& nschenIhnenvielEntdeckergeistbeimDurchbl tternundLesenderErgebnisse,undhoffen,das sSiewertvolleDenkanst ef rihrInformation& retwaigeFragenundweitereDetailausarbeitu ngenstehenwirIhnenjederzeitsehrgernezurV erf , Ihr Prof. Dr. Rudolf Aunkofer/// Source: Institute for Information & Supply Chain Management7 GfK Verein Juli 16| High-tech Distribution 2020 /// Source: Institute for Information & Supply Chain ManagementSupply chain management: The essentials in brief (1)Supply Chain Management: Das Wichtigste in K ,suchastheincreasingsignificanceofclouda ndmanagedservices,areglobalinnature, ,thefollowingconclusionscanbedrawn.

7 1)Front-endsupplychainmanagement,inother words,customer-facingsupplychainmanageme nt,providesafundamentalcompetitiveadvant agein21st-centurydemandandbuyers' )GlobalSCMstrategiesmustbeadaptedtolocal conditionsiftherightproductistobesuccess fullyofferedandsoldintherightchannel, )Allpartnersinvolved industry,distributors,resellers,retailer sande-tailers mustadapttheircurrentmarketpresenceaswel lascooperationstrategiesaccordinglyonacc ountoftheexistenceofthecloudandcloud-bas ed(managed)services; ber112 ExpertenausdemSeniorManagementinneunL ndernzeigen, ,gibtesdennochlokalLandf rLandBesonderheiten,diezuber sstsichsomitfesthalten:1)Front-endSupply ChainManagement, , uferm )GlobaleSCMS trategiensindanlokaleGegebenheitenzuadap tieren,umerfolgreichdasrichtigeProdukt,i mrichtenChannel,mitderrichtigenMenge,zum richtigenPreisanbietenundverkaufenzuk )AllebeteiligtenPartnerentlangderSupplyC hain Industrie, Distribution ,ResellerwieauchRe tailerunde-tailer werdenaufgrundvonCloud,cloudbasierten(ma naged)ServicesihraktuellesAuftretenimMar ktunddasZusammenspielmiteinanderanpassen m ssen.

8 KonzentrationundKonsolidationwerdenweite rhindieSupplyChainpr GfK Verein Juli 16| High-tech Distribution 2020 /// Source: Institute for Information & Supply Chain ManagementSupply chain management: The essentials in brief (2)Supply Chain Management: Das Wichtigste in K rze4) )Eachbusinessmodel broadlinedistribution,specialised/value- addeddistributionorfulfilmentdistributio n isfacingdifferentchallenges, ,however, , ,distributors,resellers, , forensuringfuturesuccess!4)ErfolgreicheC ross-SellingStrategienben tigeneinefunktionierendeSupplyChain,umvo latileNachfragezyklen berdasbestehende2-stufigeChannelModellad quatbedienenzuk )ObBroadline,Specialized/ValueAddoderFul fillmentDistribution f rjedesGesch , rsichundgemeinsamabgestimmtSupplyChainop timierenm ssen,umselbstbeigeringenMargenundvolatil enM rktenprofitableErgebnisseerzielenzuk ,umrasch,angemessenunderfolgreichimvonRe placementzyklengekennzeichnetenM rktenagierenzuk f rdieZukunft!

9 9 GfK Verein Juli 16| High-tech Distribution 2020 The Future of DistributionNavigating the global Supply Chain/// 1 GDP in billion USD, source: World BankBrazil, France, Germany, Italy, Russia, India, Spain, UK, USAleading vendors & major distributorsthe 9 markets surveyed represent about half of global economic power3,90012,80013,00011,40012,10012,100 11,900117,40012,40019 Markets112 Experts47%GDP10 GfK Verein Juli 16| High-tech Distribution 2020 Examples of Participating Market Experts along the Supply Chain11 GfK Verein Juli 16| High-tech Distribution 2020 AgendaUnique insights into the supply chain and the Future of Distribution /// Source: GfK Current challenges along the Supply ChainCreating a successful futureNew technologies are changing the industryGlobal trends & local peculiarities of the supply chainNavigating & managing the supply chain with insights from more than 100 experts!

10 12 GfK Verein Juli 16| High-tech Distribution 2020 Supply chain management has to be guided from the B2B & B2C customerCustomerPOSV endorDISO verthelasttenyears,supplychainmanagement hasmainlyfocusedontheback-end,inotherwor ds, ,longerutilisationandreplacementcyclesas wellasalternatingpurchasecycles, ,minimisinglogisticalactivitiesandhelpin gtoavoidbullwhip, Supply Chain driven by customer demand /// Source: Institute for Information & Supply Chain Management13 GfK Verein Juli 16| High-tech Distribution 2020 1 Challenges along the Supply Chain14 GfK Verein Juli 16| High-tech Distribution 2020 /// Source: Institute for Information & Supply Chain ManagementChallenges along the supply chain in 2020 (1)Besideslowmarginsandtheongoingconcent rationaswellasconsolidationprocess, ,increasingemphasishasrecentlystartedtob eplacedon(managed)services, , ,distributorscanbesplitintothreecategori es:(1)broadliners,(2)specialised/value-a ddeddistributorsand(3) ,categoryfacesitsownsetofchallenges.