TD Synnex CEO Rich Hume Reveals Top Partner Challenges
But Hume also he says there are opportunities for channel partners: “IT never disappoints."
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First up, channel partners are facing the continued problems with the supply chain.
Said Hume: “We are all finding ourselves spending a lot of time working to optimise the supply that we’ve got. The seller now is having to make sure … they can get the supply that’s required to deliver a solution. They’re spending as much time on the supply chain side as they are on the sales side to make sure that they can meet customer needs.”
It’s an employees market as people increasingly demand the right to work in a way that suits them. This is something that could disrupt an industry already facing a significant skills gap.
“The great resignation – we’ve all heard of it. There’s attrition that’s higher for the IT segment than we’ve seen in the past. So [partners are] dealing with that challenge,” said Hume.
How can partners help their customers navigate the workplace of the future?
“What does that look like? Recognising that there is a benefit to coming together – what is the role of the office in the future versus working elsewhere? So that all needs to be sorted,” said the CEO.
Channel partners also need to identify where potential growth lies, and if it aligns with their expertise, said Hume.
“You have to think about, what is your core capability in competency and then determine which of these high growth areas you pursue. Making sure that you’re using your investment dollars to pursue those things that you’re going to have the best opportunity to be successful at in bringing value to the market.”
But where there are challenges, there are also opportunities, said the CEO.
“IT has never disappointed relative to its growth as a segment in our overall economy,” he said.
“I don’t think anyone would argue that IT will continue to play an extremely vital role as we look into the future. The opportunity for each and every one of us, based on our core strengths, is which growth opportunity to pursue? [It’s] being very conscientious and objective about the art of the possible given the assets that a business might have. Then really getting after those pursuits, whether it be edge technologies, AR, VR, Metaverse, cybersecurity, etc.
“These businesses are not easy to build. But if you get focused and get the right business plan in place, the sky is the limit relative to the value that you can create for your stakeholders.”
Hume added that it is the distributor’s job to assist partners “in making sure that they can be successful in the areas that they’re pursuing.”
Hume also provided an update on the TD Synnex business, five months after closing a $7.2 billion merger between Tech Data and Synnex. Last month it announced its first quarter-end results since the merger, posting revenues of $15.6 billion for the quarter.
“Largely speaking, our businesses all performed well, consistent with our expectation in [the fourth quarter],” he said.
Hume pointed to the complexities of COVID, a major merger and the “pretty significant demands” from vendors and customers.
“We are passionate about making sure that our stakeholders are properly served as we’re executing our business,” he said. “The business partner ecosystem for the last two years has had an amazing impact on allowing the end user customer to run, manage and execute their businesses in a very different paradigm. And that continued in the fourth quarter.”
Hume also provided an update on the TD Synnex business, five months after closing a $7.2 billion merger between Tech Data and Synnex. Last month it announced its first quarter-end results since the merger, posting revenues of $15.6 billion for the quarter.
“Largely speaking, our businesses all performed well, consistent with our expectation in [the fourth quarter],” he said.
Hume pointed to the complexities of COVID, a major merger and the “pretty significant demands” from vendors and customers.
“We are passionate about making sure that our stakeholders are properly served as we’re executing our business,” he said. “The business partner ecosystem for the last two years has had an amazing impact on allowing the end user customer to run, manage and execute their businesses in a very different paradigm. And that continued in the fourth quarter.”
TD-Synnex CEO Rich Hume has revealed the top challenges he sees channel partners facing today.
TD Synnex’s Rich Hume
In an interview with Channel Futures, Hume said these include supply chain problems, the Great Resignation and identifying growth markets. However, there are also opportunities for partners to tap into.
See our slideshow above to find out what Hume sees as the most significant challenges facing the channel. The distribution giant‘s CEO also provides an update as to how the business is doing after 2021’s mega merger.
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