ScanSource PartnerFirst: VARs Adding Tech to Adapt to Economy

Channel partners are eyeing ways to expand their tech stack as a "response" to macroeconomic changes, ScanSource executives said.

Over a thousand partners and suppliers gathered at ScanSource's PartnerFirst conference, a one-day event in Greenville, South Carolina, where the company presented its various investments and opportunities to those who are interested. ScanSource President of Specialty Technologies Tony Sorrentino promised attendees that they were in it for the "long term."

One of the big themes presented by leadership was placing partners first; including through offering new tools and through acquisitions like Advantix. But what does the partner relationship with ScanSource look like currently?

Channel Futures got a chance to sit down with senior vice presidents Casey Huffling and Brian Cuppett to discuss ScanSource's business focus, their latest acquisitions and more.

ScanSource's Casey Huffling

Channel Futures: What conversations are you having with your partners?

Casey Huffling: In our conversations with partners, we found that no one's been not affected by the overall macroeconomic environment. So our customers to looking to us for guidance on, "Where are you seeing growth? Where is the opportunity?" And we're asking, "How do we help educate and enable them on how to expand and bring new value and to help end users with any sort of budget. How do we show them additional value to their customers?" That's been a lot of the focus of what we've tried to do at ScanSource Partner First.

Related:ScanSource PartnerFirst: Building for 'Long Term,' North American President Says

ScanSource's Brian Cuppett

CF: What struggles or concerns have partners voiced to you so far?

Brian Cuppett: What's interesting is, we had some more sessions this morning around AI and our network suppliers. We tried to simplify it from a technical standpoint, but making it so they knew enough to sell it to their customers. If you're a partner but not in a particular space, then it can appear like a rather daunting task.

We also had some good follow-up conversations with partners who said they saw opportunity with their customers to expand what they offer. They were asking questions like, "What's the next step of becoming a network?" They appeared to want to sell outside their typical technology stack, whether it's around electronic shelf labeling or physical security cameras or other potential offerings.

CF: Is this interest in expanding beyond standard technology stacks a trend among ScanSource customers?

BC: Sometimes the economy or opportunity will drive new interest in branching out from what businesses have traditionally done. You saw a big refresh during COVID and now it's kind of slowed down. So partners are asking "What else can we do? Could we sell to make up for that slowdown from a business perspective?" All of the networking analysts have also forecasted down over the last few quarters, which have led to network companies going, "Hey, what else can I add to my portfolio?"

Related:ScanSource PartnerFirst: Building for 'Long Term,' North American President Says

None of this is new; it's just responses that the market and macro environment have dictated.

CF: How has the recent Advantix acquisition been received by partners?

CH: I'm really excited about the addition of Advantix under the ScanSource name, because of really what that means to our mobility VARs. We've already got many partners that are working with Advantix through ScanSource, so this just really is going to help us further scale that big growth that we saw year-over-year and the engagement.

CF: Is there advice you would present to other VARs or agents who want to work closer with ScanSource?

CH: Engage, be open and transparent and communicate with us. I think we've proven time and time again to our partners that that we're trustworthy. We want them to succeed. I think a lot of times, partners will hold information close to the chest because there's a natural fear of sharing too much information, but we are truly in it for their success.