DTEN Defies Supply Chain Crisis, Claims Not to Pass On Costs to Customers
"Our focus is not on developing traditional vendor relationships, but rather strong working partnerships," the company said.
July 29, 2022
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Channel Futures: Who are your partners?
DTEN’s Nia Celestin: DTEN has an extensive global partner network; we sell through distribution. Our two big distributors are Starin and TD Synnex in North America. And then we have channel partners including AVI-SPL, CDW, SHI, Insight and others around the world. Internationally, we work with leaders such as Hakuto, Midwich, Portenntum, Rahi, Teleswitch, Tempura and more.
CF: Before we get into the supply chain crisis and how that may have affected DTEN, I wanted to know what the actual supply chain looks like for your company?
NC: Like many companies, DTEN manufactures in China and then we ship to our own warehouses located all over the world, including North America, EMEA, APAC, as well as Latin America. We hold some inventory at our warehouses before shipping to our distributors, and next, further down the supply chain to our channel partners.
CF: Could you give us an example of a typical DTEN product and how it travels through the supply chain?
NC: Let’s take the DTEN ME, our desktop all-in-one device, as an example. Distribution will place an order, then DTEN will ship the product to distribution, typically from our warehouse, so it arrives immediately. If not shipped from our warehouse, the DTEN ME will ship directly from our manufacturing facility. In either case, our goal is to get the product where it needs to be as quickly as possible.
CF: When it came to critical products, how long did you have to wait for these items to arrive during the supply chain crisis, which is technically ongoing?
NC: Our supply chain has been managed strategically by the DTEN team. They ensure our products are in-stock and we have inventory. Because we house product in our own warehouses, if there are potential delays, we have an inventory buffer.
CF: It seems as if DTEN was prepared for the pandemic and had prepared prior to the supply chain crisis in the event of an emergency. Whose decision was it to make sure you had this buffer of inventory?
NC: Our CEO, Wei Liu, has tremendous strategic vision for the company overall. The impetus behind our supply chain management – and really everything we do – is to deliver the ultimate customer experience. And part of that experience includes how long it takes to get a product, from the time it’s ordered until the time it’s delivered. In our industry, that can typically take a long time. DTEN wanted to do better. Enterprise clients are used to waiting for inventory, so they are amazed to get DTEN products so quickly. Small businesses and consumers tend to expect shorter delivery times and DTEN is happy to oblige them as well. In the end, DTEN recognizes always being in-stock provides a competitive advantage.
CF: How did DTEN come up with a strategy? I mean, it’s one thing to say, “Let’s have an oversupply of the supplies that we need.” But that can’t be your entire strategy. What does it take to be prepared for something like a COVID-19 pandemic?
NC: I don’t know if anybody can prepare for a pandemic in advance. But DTEN had already made the decision that we were going to move product closer to the customer. In our warehouses, which are around the world, we watch our supply very closely. Inventory is monitored by high-level team members daily. We don’t want to hold too much inventory, but at the same time we want to have enough to meet our growing demand.
CF: Is it different for a startup to manage the supply chain crisis than it is for a large company?
NC: I’m not sure if it is different. I think for any company to successfully manage the supply chain, one of the key factors is to build strong relationships. Our focus is not on developing traditional vendor relationships, but rather strong working partnerships, so we’re aligned on objectives, processes and results. An example is our partnerships with manufacturing suppliers. DTEN staff are onsite when products are being built. Any issues that may arise are immediately addressed; quality control happens in real time. Having a strong partnership at the factory level is also important so that we can take advantage of open production opportunities. Maybe that’s the difference between DTEN and bigger companies: We pay attention to every detail in the supply chain because it’s critical to our success.
CF: Did you find that the business model you had established prior to the pandemic resulted in any hiccups along the way? Or did things seamlessly fall into place?
NC: There were certainly hiccups, especially with the chip shortage. The entire supply chain strategy had to be tested, worked through, and retested. Fortunately, we had enough leeway to be able to do those things and manage everything effectively. And certainly, our manufacturing partners and our distributors helped us fine-tune the process. We really appreciate them!
CF: We heard a lot earlier in the year about the supply chain crisis, but the news cycle comes and goes. Just because we’re not talking about it frequently doesn’t mean it doesn’t exist. So, are people still in a difficult bind trying to get products through the supply chain?
NC: I certainly hear that supply chain issues continue. I know having product in stock, both during the pandemic and today, certainly has helped DTEN. As a startup, buyers may not always know our name. However, once they experience our … products and find out products are available right now, DTEN becomes an obvious choice. The reality is, the buyer’s decision-making process goes a lot faster when you have a competitor that cannot deliver in a timely manner.
CF: Your product is made in China, but China has experienced several shutdowns during the pandemic, obviously influencing manufacturing. How did you navigate that?
NC: The longstanding relationship with our partners is really the key. We solve any potential shortages together. DTEN doesn’t move from supplier to supplier just looking for components; we take a more diligent, cooperative approach. And by closely monitoring inventory, we know what is needed and when so we can maintain a 45-day manufacturing cycle.
CF: If stocking up on supplies is a more expensive process on your end, do you pass on the cost to consumers?
NC: DTEN does not pass on the cost. Our products are extremely affordable. We’ve experienced double-digit growth year over year since we began, and that was equally true during the pandemic. Our profit margins are solid. And I might add that’s partly due to repeat customers, who appreciate the quality and availability of DTEN products.
Keeping inventory close to our customers and in-stock was a strategic decision made by our CEO and our C-suite. It adds to the overall DTEN customer experience. And it appears to be working brilliantly.
CF: If stocking up on supplies is a more expensive process on your end, do you pass on the cost to consumers?
NC: DTEN does not pass on the cost. Our products are extremely affordable. We’ve experienced double-digit growth year over year since we began, and that was equally true during the pandemic. Our profit margins are solid. And I might add that’s partly due to repeat customers, who appreciate the quality and availability of DTEN products.
Keeping inventory close to our customers and in-stock was a strategic decision made by our CEO and our C-suite. It adds to the overall DTEN customer experience. And it appears to be working brilliantly.
The multi-trillion-dollar supply chain crisis that ensued because of the pandemic has caused chaos that may last well into 2023, say experts. China’s lockdowns in response to COVID-19 have caused port congestion, further disrupting the supply chain. This is compounded by the fact that global supply chains were having difficulties prior to the pandemic, say analysts.
DTEN’s Nia Celestin
However, channel firms have acted. DTEN, which makes all-in-one collaboration and video conferencing solutions for desktops and conference rooms, including devices designed for the hybrid workplace, is one such company. Its customers include the U.S. Department of Justice, Fujitsu, Palo Alto Networks and the University of Southern California, to name a few. DTEN, which still considers itself a startup, put policies in place prior to the pandemic-fueled supply chain crisis to stymie any trade issues that might occur. Its strategy worked, says Nia Celestin, the company’s head of marketing.
Celestin sat down with Channel Futures to discuss (see slideshow above) how DTEN moved products around the globe in a timely fashion to meet customers’ demands. As Celestin says, the startup experienced no significant manufacturing or shipping delays in the last two years. What have DTEN executives accomplished that so many companies could not?
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Claudia Adrien or connect with her on LinkedIn. |
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